ARGENTINA COULD BE THE 1ST COUNTRY USING BITCOIN AS OFFICIAL CURRENCY - page 2.

johncarpe64

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Quote from: polynesia on August 31, 2014, 10:28:45 AM

Quote from: zedicus on August 16, 2014, 09:02:13 PM

The argentina peso is already more or less pegged to the dollar on the government sanctioned currency exchanges. The most likely scenario is that Argentina would have a much higher adoption rate of bitcoin then the rest of the world. The government of Argentina is unlikely to give up control of their currency as they are more or less a deadbeat government (has a history of defaulting on their obligations).

It is not an efficient peg. They don't have the reserves to defend the peg.
There is a huge premium on the USD in the black market.

They don't have enough foreign currency reserves to cover the value of all of the pesos in circulation however they do have enough to cover foreign trade out of Argentina. The reason the dollar trades at such a premium is because it is widely believed that the government will further devalue the peso in the near future (lower the peg), and have capital controls in place that prevent too much money from leaving the country.

Timetwister

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Ha, ha, ha, ha, ha, ha, ha! Yes, sure, a super interventionist government giving up control on their currency. Do you have any idea of how high is inflation there?

polynesia

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Quote from: zedicus on August 16, 2014, 09:02:13 PM

The argentina peso is already more or less pegged to the dollar on the government sanctioned currency exchanges. The most likely scenario is that Argentina would have a much higher adoption rate of bitcoin then the rest of the world. The government of Argentina is unlikely to give up control of their currency as they are more or less a deadbeat government (has a history of defaulting on their obligations).

It is not an efficient peg. They don't have the reserves to defend the peg.
There is a huge premium on the USD in the black market.

kleeii

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I doubt that this kind of adoption with official sanction will happen anytime soon
Argentina is too deeply steeped in the traditional financial system for this to happen easily

zedicus

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Quote from: harrymmmm on August 09, 2014, 09:57:45 AM

Quote from: beetcoin on August 04, 2014, 06:47:32 PM

it's too much of a gamble, even for a country like argentina.. besides, i doubt their population doesn't have the capacity to use it as the country's main currency.

Even in this unlikely case, they probably wouldn't adopt bitcoin per se.
They'd most likely peg their currency to it for the reasons you mention (like pegging your currency to a basket of trade weighted other currencies)..

The argentina peso is already more or less pegged to the dollar on the government sanctioned currency exchanges. The most likely scenario is that Argentina would have a much higher adoption rate of bitcoin then the rest of the world. The government of Argentina is unlikely to give up control of their currency as they are more or less a deadbeat government (has a history of defaulting on their obligations).

zen2

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Very interesting idea really but to make such great change in one country is not easy, it requires changing a lot lows, preparing people for this, informing public, bank regulations, financial regulations...
Of course, first you will need to get support from politicians who probably rarely using even simple email and it's question how much they can understand Bitcoin concept.
I really doubt such idea is possible now.

aesma

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fly or die

Many posts about a country not wanting to surrender its currency, makes you wonder if the Euro exists.

polynesia

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Quote from: teramit on August 09, 2014, 07:00:08 AM

governments dont use gold as a currency because if they try gold price will raise too much.

That is true. Anything whose supply is finite is deflationary in nature (vs other goods). So governments would be uncomfortable using it as currency.
That is why the gold-backed Bretton Woods system failed.

harrymmmm

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Quote from: beetcoin on August 04, 2014, 06:47:32 PM

it's too much of a gamble, even for a country like argentina.. besides, i doubt their population doesn't have the capacity to use it as the country's main currency.

Even in this unlikely case, they probably wouldn't adopt bitcoin per se.
They'd most likely peg their currency to it for the reasons you mention (like pegging your currency to a basket of trade weighted other currencies)..

teramit

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The Last Cryptocoin Burner

governments dont use gold as a currency because if they try gold price will raise too much.
so btc wont be used as a currency just the same reason.
no country will do this , every goverment demands a controllable currency ,why should they use another currency while they can use their own currency.
btc is good for customers not for goverments.
cyprus crysis raised btc because customers rushed to btc not goverment.

polynesia

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Quote from: dadaas on August 08, 2014, 11:00:26 AM

Quote from: polynesia on August 08, 2014, 09:31:09 AM

Quote from: dadaas on August 07, 2014, 09:16:59 PM

Of course, it already did once. But let's stay positive

The effect of rumours is usually short term. So to that extent, it gets reversed when the rumours are proved false.

Sure, but people who are good at trading Bitcoins can use that rumor to earn some extra BTC on it.

Yes, but if you are in a long term hold position, you won't get impacted.
The people who lose out are those who rush out to sell at the first hint of bad news.

dadaas

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Quote from: polynesia on August 08, 2014, 09:31:09 AM

Quote from: dadaas on August 07, 2014, 09:16:59 PM

Of course, it already did once. But let's stay positive

The effect of rumours is usually short term. So to that extent, it gets reversed when the rumours are proved false.

Sure, but people who are good at trading Bitcoins can use that rumor to earn some extra BTC on it.

BowieMan

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Quote from: bitcoinpropaganda on August 02, 2014, 09:36:15 AM

After the default in Argentina, their gov could be on a perfect position to implement Bitcoin as a national currency.

But first the president Cristina Kirchner (@CFKArgentina) needs to know about this option, and the benefits of doing such incredible change.

We should make an international campaign/effort to convince her that this would be the best to do, and we should do it fast before the CITIBANK/JP MORGAN/FED take care of their debt.

http://www.coindesk.com/argentinas-debt-default-good-bitcoin/

It could maybe work as a way of using Bitcoin as a countries reserve, but making it the FIAT currency won't work. It's not as easy to use in everyday life and many people still have or are going to want to rely on regular bank notes. But it would be a great thing for Bitcoin and I'd welcome that decision, even if it was just in order to see that experiment play out!

polynesia

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Quote from: dadaas on August 07, 2014, 09:16:59 PM

Of course, it already did once. But let's stay positive

The effect of rumours is usually short term. So to that extent, it gets reversed when the rumours are proved false.

dadaas

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Quote from: polynesia on August 07, 2014, 08:25:50 PM

Quote from: dadaas on August 07, 2014, 01:42:05 PM

Quote from: polynesia on August 07, 2014, 12:44:13 PM

Quote from: dadaas on August 07, 2014, 09:15:15 AM

Quote from: bitbob82 on August 07, 2014, 09:00:58 AM

why dont they use the US dollar first right?

since adopting US dollar is easier just like in the zimbabwe

but if they really use bitcoin as their country currency, i can foresee bitcoin price shoot pass 10,000 dollar each

It is quite possible that some people in Argentina are stashing up with Bitcoins and now are trying to encourage someone in their government to make it official there because they are aware of fact that they can earn lot of fiat and they are trying to exploit situation there.

Stashing up bitcoins/dollars is what I expect everybody in Argentina is doing now. Tongue

That's what I would do. Even just rumors can make Bitcoin price jump. We will wait and see. It seems like that's whole point of Bitcoin right now Cheesy

Rumours (like China banning bitcoin) can drive prices down as well. Cheesy

Of course, it already did once. But let's stay positive

polynesia

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Quote from: dadaas on August 07, 2014, 01:42:05 PM

Quote from: polynesia on August 07, 2014, 12:44:13 PM

Quote from: dadaas on August 07, 2014, 09:15:15 AM

Quote from: bitbob82 on August 07, 2014, 09:00:58 AM

why dont they use the US dollar first right?

since adopting US dollar is easier just like in the zimbabwe

but if they really use bitcoin as their country currency, i can foresee bitcoin price shoot pass 10,000 dollar each

It is quite possible that some people in Argentina are stashing up with Bitcoins and now are trying to encourage someone in their government to make it official there because they are aware of fact that they can earn lot of fiat and they are trying to exploit situation there.

Stashing up bitcoins/dollars is what I expect everybody in Argentina is doing now. Tongue

That's what I would do. Even just rumors can make Bitcoin price jump. We will wait and see. It seems like that's whole point of Bitcoin right now Cheesy

Rumours (like China banning bitcoin) can drive prices down as well. Cheesy

dadaas

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Quote from: polynesia on August 07, 2014, 12:44:13 PM

Quote from: dadaas on August 07, 2014, 09:15:15 AM

Quote from: bitbob82 on August 07, 2014, 09:00:58 AM

why dont they use the US dollar first right?

since adopting US dollar is easier just like in the zimbabwe

but if they really use bitcoin as their country currency, i can foresee bitcoin price shoot pass 10,000 dollar each

It is quite possible that some people in Argentina are stashing up with Bitcoins and now are trying to encourage someone in their government to make it official there because they are aware of fact that they can earn lot of fiat and they are trying to exploit situation there.

Stashing up bitcoins/dollars is what I expect everybody in Argentina is doing now. Tongue

That's what I would do. Even just rumors can make Bitcoin price jump. We will wait and see. It seems like that's whole point of Bitcoin right now Cheesy

keithers

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I don't see any country adopting a currency as "Official" if they can't control it

Robert Paulson

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i sure hope they don't plan on doing more than 7 transactions per sec.
cause that's all bitcoin suppports right now.

polynesia

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Quote from: dadaas on August 07, 2014, 09:15:15 AM

Quote from: bitbob82 on August 07, 2014, 09:00:58 AM

why dont they use the US dollar first right?

since adopting US dollar is easier just like in the zimbabwe

but if they really use bitcoin as their country currency, i can foresee bitcoin price shoot pass 10,000 dollar each

It is quite possible that some people in Argentina are stashing up with Bitcoins and now are trying to encourage someone in their government to make it official there because they are aware of fact that they can earn lot of fiat and they are trying to exploit situation there.

Stashing up bitcoins/dollars is what I expect everybody in Argentina is doing now. Tongue

Topic: ARGENTINA COULD BE THE 1ST COUNTRY USING BITCOIN AS OFFICIAL CURRENCY - page 2. (Read 7137 times)