Topic: 1st nation to adopt Bitcoin will become wealthiest - page 3. (Read 8285 times)

Volatility will reduce with larger market capitalisation.

The nation who will adopt Bitcoin first will make such a huge profit on their investment that they can take losses with their newfound wealth and still be ahead by quite a lot compared to their investment.

It will destroy nations eventually, but will make few politicians rich in the process.

I'm betting on politicians being greedy.

No, the wealthiest nations are those that can print their own money at will and then steal their citizens money via taxes to give to their buddies. I would like to see what would happen to a country that adopted bitcoin as its national currency though I think it could be even more risky that using fiat with the current volatility. Hopefully the increased demand would escalate the value, though.

If a nation would just buy Bitcoin it would be speculation and not something that nations should do.

If instead the nation bought Bitcoin and announced that it's their new national currency that taxes must be paid in, it would create huge demand for Bitcoin compared to now and it would increase it's investment's worth by a big factor. Just like going from paper that costs four cents to print to being worth a hundred.

This is how Romans did it. They announced that taxes must be paid with this coin that has a picture of the ruler and gave the coins to soldiers to resupply themselves on their way to new battles, which citizens accepted because it was the only way to pay tax to the government.

This is how every nation gives value to it's currency. They create the demand by law. Law is backed up by violence and thus Bitcoin's value would go up violently.

The great thing about this is that it will happen for sure, because of greed. Bitcoin is faster, cheaper, more secure and private than the current system. The  exciting thing about that is that Bitcoin's wide adoption will eventually end nation states and thus free humanity from the violent concept that a nation is. War is a side effect of nations and only a psychopath is against more peaceful future.

What's absolutely exhilarating is that this is a self-fulfilling prophecy. Just because the idea is out, it will happen. No force on earth is big enough to prevent this happening.

The question remains, which nation first?

There is no logic in this move when bitcoin price is not stable. It's a economical suicide! It will be painfully difficult to control it's money supply and exchange rate. Import and exports will suffer as prices fluctuate too much. Economy will likely take a nose dive.

What about 50x leveage? provided by OKCoin etc.?

Edit: Right, they will have to close the option.  
you are right.

You are right.

But, it is a better idea for a country to invest in it, like they invest in gold etc. because it has got huge potential. Once they do, Bitcoin will be more valuable and more people will start using it.

But accepting it as an official currency will get the country broke.

Total amount of Bitcoin in danger of cashing out is less than 100% of total.

Fiat money has been inflated by counterfeiting as in money printing by a very big multiple of 100%.

Long term Bitcoin wins.

Place your bets accordingly.

Thanks for saving my eyes, i thought only brainless bitcoiners here

No nation would be stupid enough to trust their wealth in bitcoin.
The majority of bitcoins are held by unknown people with unknown intentions. What guarantees does anyone have that Satoshi or someone else won't just cash out their 1mil.+ coins? Absolutely none.
The only thing that bitcoin holders have is hope that some big holder won't start cashing out and won't push this thin little market to it's knees.
You can gamble on hope, but serious finance needs more then that.

I see Iceland capable of doing that. They are not big in terms of population, meaning that it will be easier to adopt and they already showed they are able to resist the pressure from the central banks. Therefore I see them capable of doing that.
Another country candidate is Estonia. They have been the first country to go fully for e-voting, so they already have some experience.

Bitcoin is not ready yet. In a few years I can see this as a real possibility.

Is Greece small and desperate enough?

Other candidates?

If a nation would buy 1% of total Bitcoin ever available (210k) at current prices (50M USD) and announce that this is their official currency, they would become world's wealthiest nation almost overnight.