Topic: If we can see a country with 'Bitocin standard' monetary system (Read 839 times)

Guys, Kenya is doing this right now !!!

While we know the fiat system is unsustainable I do not want governments to begin to hoard bitcoin to back their currencies, this will create the same scenario that we have with gold in which governments can buy all the bitcoin they want since they have the printing machine, it is better that bitcoin remains an independent system otherwise the government will just make the same mistakes all over again and we will have to support another cryptocurrency when that happens.

The authorities don't want their control to disappear, so they still consider paper money to be the most relevant payment lat, and nothing seems to be done other than waiting for the government's decision to announce good news to us, so that mass adoption occurs.

The country of the monetary system, led by Bitcoin, it can only be in virtual space. And if you create a separate city on the blockchain.

I think this is really the issue, when I first find out about bitcoin I immediately fell in love with the coin because I understood immediately that satoshi not only created a payment system but that he understood the economy in the very same way that I do, so I immediately adopted bitcoin but most people do not really understand that an economy that is based on fiat currencies cannot last and at some point it has to fail but for some reason they are unable to understand that reality.

We can't really implement the idea of a great monetary system with bitcoin, though it has a huge market capitalization and has already proven effective, but it's efficiency to support the needs of the whole society just like what the fiats does is hard based on the characteristics it has. But if there would be a country that standardized bitcoin to their monetary system, I don't think that country could ever be a third world country. We need allot of money to fund transaction fees regarding the implementation of this idea.

as we feel now, the combination between fiat and bitcoin in my opinion plays its respective role. with bitcoin we can make a profit so that when converted to fiat, we can use it freely to buy what we need. bitcoin gives us the opportunity to progress, without having to look at education, age, etc.

We're making Bitcoin a big deal. I don't think we can solve everything with bitcoin. Bitcoin is just the beginning. There are frauds and frauds in the Bitcoin market. Now what do you need to do. We need to take bitcoin and decentralized structures as examples.

It sounds utopian, but I agree with that.
But I don't think that the authorities themselves will decide to do this, because they are subordinate to the modern financial system too.
We need to start with ourselves, not to use this destructive system.

I always favor the combined usage of crypto currencies especially bitcoin with fiat. People shall have open choice of whatever they want to use. Government can keep fiat for export and import with countries who are not accepting bitcoin but those who are using bitcoin, such countries will not have issues in accepting bitcoin as a payment mode. Sooner or later we will see bitcoin used in trading internationally.

One thing you have avoided that the most important thing that is decentralization, Ultill Bitcoin would get centralized no country or central bank would count upon it, I think this is the main difference between Bitcoin and another coin, Every central bank and government want to control over the monetary system and the currency, so in terms of mass adoption, it would face a lot of barriers, not only that but also Bitcoin will get accepted around the world because of the price volatility, here is also the main point is decentralization. so things should be changed.

And it will also be very difficult to establish a system of import and export for such a country, because if Bitcoin becomes the single currency of the country, and all transactions and prices for goods are in Bitcoin, then how to buy goods from outside? After all, then you will have to verify the value of Bitcoin relative to its market value, which in turn will make the country dependent on its volatility, if vital things are imported.

From time to time, what I've figured out is that, what people especially citizens from a third world country lacking that is considerably the root why they aren't having a financial stability is their lack of knowledge and awareness to technological innovations. Most of the time, they mind is close when we are explaining how good bitcoin is, mainly I can consider it as a low level financial literacy.

Because believe me or not, I do really think that only financially literate individual could really manage to utilize bitcoin in productive ways why? because we need to understand how risky it is to serve us our currency because of volatility, and we need more time and effort to figure out altcoins.

Of course it was most prosper time period of human history if America was not economically used while the rest of the world was for millennium.   My question is where you got this data?  I thought prices did not change much. But you are saying prices decline? Do you have any link or how you know this?

Fiat has undoubtedly been there for centuries and crypto is a latest trend in the market. Fiat is used all over the world because it is easy to understand and operate because it does not need any internet etc. whereas to understand crypto currencies, you need to be literate and understand the laws of technology. Crypto currencies will in future be priority when whole world is aware of them.

It is funny that most of the people don't want to admit the power of fiat and that it won't go away in just a moment.
And 10 years that cryptocurrencies exist are like a moment compared to history of fiat money.
Anyway, I believe that most of the countries already has that part in their govs that seeks and systematize info about crypto.

While they do not have any way in which they can take control of a decentralized currency like bitcoin, they could do the same that they did to gold, slowly they could begin to buy bitcoin and since people still think in the price of bitcoin against fiat they could print all the money that they want in order to get bitcoin, then once their currencies fail they could back them with bitcoin and after some time they could leave this new bitcoin standard and introduce their fiat again because now they will be one of the biggest holders of bitcoin around the world.

I believe that a lot of countries are looking into that, but not in the way that you think. They are not going to eliminate fiat, they are just going to create cryptocurrencies as a part of the system. That way people will be able to convert their money (fiat) to their cryptocurrency, take for example: we have USD and there is USD Cryptocurrency, users can be able to convert the USD to USD-Crypto and then store is as an asset? And they can use it for a quick transaction to anyone around the world just like they would with Bitcoin.

I am saying this because I read about the JPM coin and I believe that it's going to be like that. China is creating their own cryptocurrency and they didn't say that they will be wiping fiat off the paper.

I agree, instead of monetary system why not just a universal digital currency? Bitcoin to be centralized would just ruin everything from it and small investor will be at silly situation. Any country doesn't need bitcoin, but every people should have bitcoin. We must watch the countries that already engage with bitcoin adoption in many cases like banking so we can learn from it or prevent it to happen.

The things you saying are contradictory with each other. First problem, stablecoins are not capped. It doesn't make much sense to limit the production of stablecoin. In order to measure the increase/decrease in the value of any commodity, you need a variable which changes with the value. Currently fiat money serves that purpose. Suppose, the price of 1 kg onion is $5. Now due to decrease in supply, owning onion has become difficult so price will rise, say to $10. Similarly, the value of all commodities change and such change can be exponential. If the variable i.e. fiat money is limited then you won't be able to measure the increase in value after a certain point which is not right for the economy.

Second problem, the problem of growth. Why do you think price of an item increases? Or salary of an individual increases every year? The underlying problem is the problem of growth. No one wants to remain at same point for all his life. Everyone wants to grow. If you have $100 today, you want to have $150 tomorrow and may be $200 a day later and so on. The concept of growth has given the birth to the concept of inflation and so on. Now if we limit the production of money like you saying, $1 trillion in US Economy. It may sound great solution for now but what about 100 years later? How will US measure its GDP growth once economy will touch $1 trillion mark? You always need an infinite variable.