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Topic: Countries with weak economies can use cryptocurrency instead the dollars. (Read 1427 times)

sr. member
Activity: 406
Merit: 256
that would be a difficult prospect because the crypto currencies are still very volatile and that would spell further economic problems for a weak economy because noting in that country could be stable , the cost of an item would also have to be volatile for example if your using bitcoins and you bought an item for re-sale and the price for a bitcoin went up that would there fore mean that you would also have to amend the price of that item to reflect that increase. That would make absolutely no sense as you would have no idea exactly what your money is worth or what portion of goods it would pay for.
Why should the state use cryptocurrency? Fiat's money, too. Initially, Fiat has real value and any government has the opportunity to support this value. But the problem is that the government doesn't know how to run the economy. They are always spending more than they earn and compensate it at the expense of inflation. They cannot exist in a fair economy.

I think it's not the main problem and reason,First of all governments can not control cryptocurrencies emission,despite the fact that usually there is  limited supply and cryptocurrencies are making emission with mathematical algorithms and not by central administrators and central banks.So just imagine how much electricity do they need,For example let's get bitcoin,Bitcoin's energy usage is very hug(For example as I remember correctly in Iceland bitcoin miners used more electricity than citizens for their daily need in one year).This is a very complex issue and needs distinctive approaches,Special structures must consider every details to do something like this,new power-stations,Hydro station,solar energy,other alternative energy sources,etc.

This is not a problem. Many countries buy electricity abroad. If the price of electricity does not exceed profitability, I see no problems. But this problem applies only to miners. Normal users don't consume a lot of electricity. Now the majority of miners are concentrated in China. They ensure the use of cryptocurrencies around the world.
newbie
Activity: 40
Merit: 0
The main point is that you need enough currency of your country or dollars to purchase cryptocurrencies. It can be problematic in countries with weak economies for obvious reasons
member
Activity: 630
Merit: 24
that would be a difficult prospect because the crypto currencies are still very volatile and that would spell further economic problems for a weak economy because noting in that country could be stable , the cost of an item would also have to be volatile for example if your using bitcoins and you bought an item for re-sale and the price for a bitcoin went up that would there fore mean that you would also have to amend the price of that item to reflect that increase. That would make absolutely no sense as you would have no idea exactly what your money is worth or what portion of goods it would pay for.
Why should the state use cryptocurrency? Fiat's money, too. Initially, Fiat has real value and any government has the opportunity to support this value. But the problem is that the government doesn't know how to run the economy. They are always spending more than they earn and compensate it at the expense of inflation. They cannot exist in a fair economy.

I think it's not the main problem and reason,First of all governments can not control cryptocurrencies emission,despite the fact that usually there is  limited supply and cryptocurrencies are making emission with mathematical algorithms and not by central administrators and central banks.So just imagine how much electricity do they need,For example let's get bitcoin,Bitcoin's energy usage is very hug(For example as I remember correctly in Iceland bitcoin miners used more electricity than citizens for their daily need in one year).This is a very complex issue and needs distinctive approaches,Special structures must consider every details to do something like this,new power-stations,Hydro station,solar energy,other alternative energy sources,etc.
sr. member
Activity: 630
Merit: 272
that would be a difficult prospect because the crypto currencies are still very volatile and that would spell further economic problems for a weak economy because noting in that country could be stable , the cost of an item would also have to be volatile for example if your using bitcoins and you bought an item for re-sale and the price for a bitcoin went up that would there fore mean that you would also have to amend the price of that item to reflect that increase. That would make absolutely no sense as you would have no idea exactly what your money is worth or what portion of goods it would pay for.
Why should the state use cryptocurrency? Fiat's money, too. Initially, Fiat has real value and any government has the opportunity to support this value. But the problem is that the government doesn't know how to run the economy. They are always spending more than they earn and compensate it at the expense of inflation. They cannot exist in a fair economy.
sr. member
Activity: 462
Merit: 252
that would be a difficult prospect because the crypto currencies are still very volatile and that would spell further economic problems for a weak economy because noting in that country could be stable , the cost of an item would also have to be volatile for example if your using bitcoins and you bought an item for re-sale and the price for a bitcoin went up that would there fore mean that you would also have to amend the price of that item to reflect that increase. That would make absolutely no sense as you would have no idea exactly what your money is worth or what portion of goods it would pay for.
full member
Activity: 490
Merit: 107
Countries with weak economies and unstable currencies can use not the dollars but the crypto currency as a reserve unit. With such a statement made at a conference on the 20th anniversary of the independence of the Bank of England, the managing director of the International Monetary Fund (IMF) Christine Lagarde.

What do you think? Is it possible?
I did not heard anything about this news, nut may you are right. I have a question, buying bitcoin in this day is only being deal as a currency business and those people invest in bitcoin who have extra money to invest in bitcoin and make more and more money, how can the people with low income cay buy bitcoin and use it instead of dollars, because dollar is just a currency and bitcoin is a currency and business too?
Third world countries it seems  no right to left up there status but, crypto currency has no boundaries as long as their citizens can invest even in little amount and then earn a profit in bitcoin it is already  a big help for them, dollars is very hard to earn because it is  controlled.
sr. member
Activity: 406
Merit: 256
Venezuela has tried to go this route and eventually got the new US sanctions.  On the other hand, after the announcement of new sanctions, the demand for Petro rose sharply. I think it is necessary to calculate all the advantages and disadvantages for each country.
How do you know the demand for Petro grew? I have not seen any exchange on which this cryptocurrency is traded. I heard the Russians want to sell parts for Petro. But this is not an indicator of Petro's popularity. Putin supports Maduro and will do everything he can to support Maduro. I do not believe in the popularity of public cryptocurrencies.
member
Activity: 148
Merit: 10
Venezuela has tried to go this route and eventually got the new US sanctions.  On the other hand, after the announcement of new sanctions, the demand for Petro rose sharply. I think it is necessary to calculate all the advantages and disadvantages for each country.
newbie
Activity: 1
Merit: 0
If a country has weak economy then no currency (including crypto currencies) will improve its economic condition. Therefore crypto cannot help much a weak economy, in principle at least.
legendary
Activity: 1232
Merit: 1091
it was the first thing I sterted to think about after reading. Weak economy often equals weak infrastructure, bad internet connection and other suff. People in this countries hardly know what the hell is bicoin

That may apply to a large part of the people in such countries, but in current days it's almost impossible to not know what's going on with Bitcoin or crypto in general. Great thing with crypto is that for those who have enough knowledge in their own interest field, which could be a writer, coder, designer, artist, etc, can make that knowledge and skills be worth an income here. One way or another, these people will eventually be able to help themselves move further in life. If you surrender yourself to all the negativity and lack of opportunities in your country, then nothing good will ever come out of you as person. Those who are willing to take an extra step or two will be the ones who have the highest chances of leaving everything behind at some point.
member
Activity: 630
Merit: 24
Today,I think they need something like blended system...Everything has its own advantages and disadvantages.So Cash allows them to be precise about how much something is worth,It lets to use numbers to talk about real value. Of course,technology development means developed economy,but in this situation its not enaugh for countries like that, to improve their social-economical conditions,They need more activities in this sphere,more crypto projects and other...At this stage,In poor countries there is no need for trusted servers,They just need something simple for their own well-being.
I have seen many false opinions...Anyway,There is no exact answer,all countries are individually.
newbie
Activity: 34
Merit: 0
I see the problem of initial purchasing crypto in such countries. Lack of money and low salaries can play their roles
newbie
Activity: 39
Merit: 0
Difficult, if a country has a weak economy, there will be little cash around to buy BTC to begin with. You may also consider that a poor country will have poor infrastructures, I mean poor phone networks, and slow Wi-Fi.

it was the first thing I sterted to think about after reading. Weak economy often equals weak infrastructure, bad internet connection and other suff. People in this countries hardly know what the hell is bicoin
jr. member
Activity: 210
Merit: 1
Weak or troubled economies are already indications that they need relevant and
effective methods to combat and elevate their financial situation. Cryptocurrencies
on their better days are quite profitable but mostly short-lived. I think a weakened
economy diverging into crypto for help or aid is gonna spell out disaster.. I don't
know but no government or country should take such a dive with a risks as wide as
the equator. Good thought though, admirable approach to crypto as solutions but
unapplicable for the time being.
full member
Activity: 658
Merit: 152
Well, it may seem logical, cause of the use of the US dollars support the economic only of the United States. But laws in every countries are different, by some laws bitcoin cannot be counted as payment instrument. I think those countries who use USD have some benefits from the USA, that's why they can't stay away the use of $ so easy as it may seemed to be done.
newbie
Activity: 168
Merit: 0
Haha it seems weird in my imagination.
There are a lot to experience before it come to pass. The reason is people are oriented by the face of dollar on the planet earth. It is not too easy to cut this way of uses. Everyday life dollars fall on the way side by side of the earth corner dollars word in there. If bitcoin take place there are too many things to fix before it will come to the stream of source in the business activities in all the country.
hero member
Activity: 2268
Merit: 789
Countries with weak economies and unstable currencies can use not the dollars but the crypto currency as a reserve unit. With such a statement made at a conference on the 20th anniversary of the independence of the Bank of England, the managing director of the International Monetary Fund (IMF) Christine Lagarde.

What do you think? Is it possible?

I do not fully agree.
Having a weak economy has its negative implication towards its development in infrastructure, innovations in technology, and corruption. Assuming that a country is underdeveloped, its resources are allocated into an hierarchy of needs, which I believe that cryptocurrency is under. They must first tackle the the issues in their country which are more prevalent, rather than changing their payment system. In the event that they focus into changing their payment system, this will lead to catastrophe in the market, considering that most hegemonic countries are against the utilization of bitcoin.
newbie
Activity: 185
Merit: 0
In my opinion, it's not so easy to gain this when we have a country with quite a weak economy.
full member
Activity: 966
Merit: 104
Countries with weak economies and unstable currencies can use not the dollars but the crypto currency as a reserve unit. With such a statement made at a conference on the 20th anniversary of the independence of the Bank of England, the managing director of the International Monetary Fund (IMF) Christine Lagarde.

What do you think? Is it possible?
Yes, I think that this is quite possible. Countries with a weak economy, where inflation is too high, and the country's economy is unbalanced, can use the crypto currency, along with the use of its national money. In this case, bitcoin or other crypto currency will be able to protect citizens from inflation. However, in this case, the crypto currency can not completely replace the national money, there is a hidden danger to get under the influence of other countries, where such a crypto currency will be actively used.
sr. member
Activity: 630
Merit: 263
Countries with weak economies and unstable currencies can use not the dollars but the crypto currency as a reserve unit. With such a statement made at a conference on the 20th anniversary of the independence of the Bank of England, the managing director of the International Monetary Fund (IMF) Christine Lagarde.

What do you think? Is it possible?

I think that is correct because if the country will keep a huge percentage of Bitcoin it is like they also keep a huge percentage of dollars reserve because the value of Bitcoin currency is base on dollar value as the main currency of the trade therefore it is better for these countries to adapt and legalize Bitcoin as investment as it will reduce the unemployment and increasing the purchasing power of the people making the economy to become strong and stable.
You're wrong. Recently, we saw how the price of bitcoin fell presumably after bitcoins were sold to the ruined mtgox exchange in the amount of 400 million dollars. On a state scale, this is a negligible amount. How can a state use such currency? The IMF was created in order to destroy the state. For this reason, Lagarde gives such bad advice.
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