Topic: A country backed by [btc] instead of fiat ... that would be something ... - page 2. (Read 1663 times)
December 25, 2014, 05:25:05 AM
A country would not accept it *simply* because they can't control the currency. What a country needs is a fiat paper which they can print when they want at certain conditions in order to manage and control the economy. Like for example, indicators in trade surplus, employment and such. Introducing bitcoin which they have no power to meddle with means it will not work.
December 25, 2014, 05:03:11 AM
indipendent small country, like the one created by one man, could have this easily i think
December 25, 2014, 04:59:24 AM
The economy of such a country would crash faster than you can sneeze.
Just imagine. A government that cannot get out of debt by devaluing it, that cannot avoid paying it, and the cost of this debt keeps raising. You get Cyprus on steroids.
Bitcoin is suitable only as a free market currency. As in "freely chosen by the individual participants", when every market participant does his own economic calculation and decides for himself whether it is worthwhile to use Bitcoin as a currency or not. Any attempt to impose it on the economy with a government degree would result in a disaster worse than the imposition of an inflationary fiat currency.
Just imagine. A government that cannot get out of debt by devaluing it, that cannot avoid paying it, and the cost of this debt keeps raising. You get Cyprus on steroids.
Bitcoin is suitable only as a free market currency. As in "freely chosen by the individual participants", when every market participant does his own economic calculation and decides for himself whether it is worthwhile to use Bitcoin as a currency or not. Any attempt to impose it on the economy with a government degree would result in a disaster worse than the imposition of an inflationary fiat currency.
December 25, 2014, 01:03:42 AM
maybe we should look for a banana republic and get them to back by BTC and we would invest to float the country ...
Would it work?? If it does, what does it mean and the future it would bring?
Would it work?? If it does, what does it mean and the future it would bring?
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