You have to start from the beginning, if a new, nascent economy has weaknesses and vulnerabilities, not only BTC can make it stagger, any type of financial act can do it, those who take hold under a strong economy and that have good support should not be afraid or fears for the BTC, because then it means that there is no harmony in the economy or economy model that is implemented, if there are vulnerabilities with anything there may be a crash. For old economies with high inflation, the solution is BTC, and to improve the economy it is best to take BTC into account, just as they do in El Salvador.
Topic: The Danger of Local Economy. (Read 349 times)
Merry christmas!
I am happy to dispell your doubts once more.
Firstly, you are right, for food and small purchases the fees would be significant, as an example, a kilogram of maize flour here costs about 1$, so paying on chain is not a good idea.
For these cases people do not use on-chain transactions, they use instead wallets or exchanges like Binance, instead, which allow in-exchange transactions without fees. Binance is becoming quite popular here, so are other exchanges, people mostly are using these for those micro-payments you describe and (hopefully) the main stack stays in a non-custodial wallet.
See: https://pay.binance.com/en
I am happy to dispell your doubts once more.
Firstly, you are right, for food and small purchases the fees would be significant, as an example, a kilogram of maize flour here costs about 1$, so paying on chain is not a good idea.
For these cases people do not use on-chain transactions, they use instead wallets or exchanges like Binance, instead, which allow in-exchange transactions without fees. Binance is becoming quite popular here, so are other exchanges, people mostly are using these for those micro-payments you describe and (hopefully) the main stack stays in a non-custodial wallet.
See: https://pay.binance.com/en
Merry Christmas to you and your family!
And also Happy New Year - may it bring you and your family a solution to problems, prosperity, health and good luck!
Thanks for the answer ! And then for me the "arithmetic" component scared a little - it seems like you pay for food, and you pay even more for the commission. And the type of joint wholesale purchases - is this not practiced? You can also buy flour or some kind of products that are consumed regularly and in significant quantities in "small wholesale", saving on commission.
Honestly, with some developing countries, their local currencies are more or less meaningless, and all important transactions are done through dollars, euro's or renminbi. So, mixing that in with cryptocurrencies is not that much of a strech. As far as it becoming the only currency? I highly doubt it because all serious investments in the country or serious projects being paid are being paid through other major currencies.
I have to say local economies are getting even worse but the big nations are getting a bigger gap each year as well. We had slavery and death and so much misery for the lower class while the upper class had super fun up until 100 years ago or so, then we started to grow a bit better, that crash during late 20's caused things to get a little better, and until around 60's or so things looked nice.Around early 70's things started to pick up, and by the time 80's came with the cold war and all the gap started to look like there is a growing gap, not a huge one yet but the gap was growing between rich and poor instead of closing. And now we have a huge gap once again, not that we are slaves anymore, but when you can't pay rent, you can't go to the doctors without getting broke, when your cancer costs are as expensive as your house value, then I am sorry but that is not really the freedom we were expecting when slavery abolished, it is really only a whip away from being slavery again.
-snipeado-
Please tell me - how is the issue of the loss of funds associated with network commissions resolved, with the regular purchase of inexpensive goods / food? According to my calculations, if the payment acceptance scheme works on standard terms, where there is a commission. Moreover, the level of commission can be commensurate with the cost of the transaction itself. Taking the same bread, vegetables, eggs - the price is not high, the transaction fee is noticeable, which gives rise to the problem of losing personal funds. Or has everyone included the commission in the price of the goods?
Merry christmas!
I am happy to dispell your doubts once more.
Firstly, you are right, for food and small purchases the fees would be significant, as an example, a kilogram of maize flour here costs about 1$, so paying on chain is not a good idea.
For these cases people do not use on-chain transactions, they use instead wallets or exchanges like Binance, instead, which allow in-exchange transactions without fees. Binance is becoming quite popular here, so are other exchanges, people mostly are using these for those micro-payments you describe and (hopefully) the main stack stays in a non-custodial wallet.
See: https://pay.binance.com/en
According to Economic Confidential blog " IMF says, Crypto Assets May Displace Local Currencies in Developing Countries". Source: Economic Confidential, Facebook page..
Bitcoin is taking over the internet for online transaction, therefore, most of the local currencies in the developing Nations are affected.. because developing Nations are not inclined in the e-currency transaction while the new generation youths use the e-currency for transactions. That making the local currency weak.
Can Bitcoin really weaken the Local Currencies in the Developing Nations?
Bitcoin is taking over the internet for online transaction, therefore, most of the local currencies in the developing Nations are affected.. because developing Nations are not inclined in the e-currency transaction while the new generation youths use the e-currency for transactions. That making the local currency weak.
Can Bitcoin really weaken the Local Currencies in the Developing Nations?
I don't think BTC will be able to weaken the local currencies of developing and other countries. The fact is that BTC takes a long time to carry out transactions and high commissions, which in turn will not be able to ensure the work of trade and other areas. BTC is currently good as a means of accumulating wealth or just to make money, but unfortunately not for using it instead of local currencies. Moreover, the price of BTC is very volatile, which is also not suitable for use as a substitute for local currency.
There is such a trend, but it is unlikely to become widespread. If we consider the still small experience of El Salvador, then there was no national currency at all. Therefore, it was much easier to accept bitcoin as the national currency there. In countries with strong economies and hard currencies, this is hardly possible. But we really need a similar experience of crowding out the national currency in weak developing countries, and preferably a positive one.
Yes, and what's wrong with it?
What's wrong with weakening a centralized currency that has had a history of being wildly inflationary which means that there is essentially an invisible tax imposed upon people every time they hold their fiats for long enough?
It's not like "local currencies" are issued by local governments. They are issued by big, centralized institutions.
What's wrong with weakening a centralized currency that has had a history of being wildly inflationary which means that there is essentially an invisible tax imposed upon people every time they hold their fiats for long enough?
It's not like "local currencies" are issued by local governments. They are issued by big, centralized institutions.
Do you have any more reliable information that would somehow support this claim? Other than this Facebook page, is this information somehow corroborated by more credible sources?
Yeah, I can't stand when a thread starts like this, with a claim that a pronouncement was made by someone and no reference links are provided. It's hard to comment on something that I don't really know is true.But let's assume the IMF said what it said for the purposes of my post. I don't know how much developing countries and their citizenry value their currency, and I assume it depends very much on which country we're talking about. If it was a country like Venezuela, then I'd say crypto might pose a threat to their fiat currency, but even during their hyperinflationary crisis I didn't hear tons of credible stories of how bitcoin or any of the altcoins were taking over; I think Venezuelans used the US dollar as a substitute currency.
And this just isn't true:
We have adopted USD as auxiliar currency, that is a fact and it is the reason we have been able to slow down the inflation here.
On the other hand, I must say that cryptocurrency, even though it has not taken over completely the economy of my country it has indeed gain a big amount of adoption, mainly because we have been mistreated by services like Paypal for years, and the fact it makes easier to conceal our savings from bad people or even send money anywhere.
Nowadays, here even the most common USD wallets offer crypto options so even if people do not much about Bitcoin or crypto they have at least been exposed to it to some degree.
In my city for example, there is a candy shop which accepts BTC, a department shop which also does so and stablecoins are being used much as payment method. Caracas (our capital city) is a place where one could live on crypto.
Any questions about how crypto is doing here, I am glad to respond.
Please tell me - how is the issue of the loss of funds associated with network commissions resolved, with the regular purchase of inexpensive goods / food? According to my calculations, if the payment acceptance scheme works on standard terms, where there is a commission. Moreover, the level of commission can be commensurate with the cost of the transaction itself. Taking the same bread, vegetables, eggs - the price is not high, the transaction fee is noticeable, which gives rise to the problem of losing personal funds. Or has everyone included the commission in the price of the goods?
Honestly, with some developing countries, their local currencies are more or less meaningless, and all important transactions are done through dollars, euro's or renminbi. So, mixing that in with cryptocurrencies is not that much of a strech. As far as it becoming the only currency? I highly doubt it because all serious investments in the country or serious projects being paid are being paid through other major currencies.
Weakening local currencies in developing countries? I doubt that. Almost all crypto investors including me from developing and developed countries still depend a lot on local currencies for various reasons.
Developing countries are actually over-dependent on local currencies when compared to developed countries and this will most probably never change in my opinion.
Developing countries are actually over-dependent on local currencies when compared to developed countries and this will most probably never change in my opinion.
Bitcoin is taking over the internet for online transaction
I like this part... this is something we all know I guess, slowly but steady Bitcoin is taking over! But I wouldn't exclude some other popular cryptocurrencies as well, many of them are now used more than ever before! I think I may say the numbers are in favor of crypto, and people who are following the situation can agree with that...
But it's not a danger for the local economies, local economies can benefit from decentralization! It's up to people's awareness, crypto can't fix things alone, it's just a tool, it's up to us to use that tool in the right way!
Crypto is here for 10 years, I believe a lot has been done in that time, and the game is far from over! Transitions are never easy, so I guess we will see many crazy things before everything settle down! But we who are in crypto... we are ready for the rough ride, it's something normal for us I think!
I think authorities and regulators from developing countries are missing the point, because their local currencies are already weak without any interference of crypto currencies and that is a good reason for people from these areas to adopt bitcoin and stay away from fiat for investment purposes.
Bitcoin has been a potential solution and not the cause of the issue of devalued fiat currencies around the world. It's important to let it very clear to everyone, especially to the most uneducated people who fall for any government's propaganda.
Bitcoin has been a potential solution and not the cause of the issue of devalued fiat currencies around the world. It's important to let it very clear to everyone, especially to the most uneducated people who fall for any government's propaganda.
Since many countries has started accepting bitcoin in different communities in the country. those that use to fiat business before in the community will start seeing the difference between decentralized currency and centralized currency which is the oldest currency in the community.
Many graduate in such community will do everything possible to invest more money on decentralized currency than centralized currency that disvalue during the pandemic.
Many graduate in such community will do everything possible to invest more money on decentralized currency than centralized currency that disvalue during the pandemic.
many people use bitcoin as investment, and this apply in altcoin. but, in some country they use alt or create new coin for their payment method, and no bad thing happen, it just the other method to paying something.
in my place, local currency be the number one of payment method, the second and the third still local currency. and younger still use what older use, because they know if in that area they dont use digital economic.
Bitcoin has created a wing to the level that it can be trust worthy to certain level, the other countries that use altcoins instead of bitcoin for payment is country that don't like bitcoin but they like to promote their coin and the same vain want their coins look like bitcoin and get the same firm of bitcoin, some countries look for necessary way to introduce they coin like bitcoin. in my place, local currency be the number one of payment method, the second and the third still local currency. and younger still use what older use, because they know if in that area they dont use digital economic.
According to Economic Confidential blog " IMF says, Crypto Assets May Displace Local Currencies in Developing Countries". Source: Economic Confidential, Facebook page..
Bitcoin is taking over the internet for online transaction, therefore, most of the local currencies in the developing Nations are affected.. because developing Nations are not inclined in the e-currency transaction while the new generation youths use the e-currency for transactions. That making the local currency weak.
Can Bitcoin really weaken the Local Currencies in the Developing Nations?
Personally, I don’t really think that’s going to be the case in this situation. A lot of these people make use of cryptocurrency for their online transactions, but at the end of the day they still end up withdrawing that money to their local currency. I move I don’t really see anything bad about that, because cryptocurrency has really created a lot of opportunities for the youths in these countries.Bitcoin is taking over the internet for online transaction, therefore, most of the local currencies in the developing Nations are affected.. because developing Nations are not inclined in the e-currency transaction while the new generation youths use the e-currency for transactions. That making the local currency weak.
Can Bitcoin really weaken the Local Currencies in the Developing Nations?
A lot of them have been able to become successful by trading cryptocurrencies online. So, this is an opportunity for them, and is also a way for them to generate income and help the country. So, it’s not really bad and I don’t think it’s going to affect their currencies at all.
Even in the developing countries most of the transactions are in digital which is through internet banking, etc so there is no issue for them to spend their local currency in their country but when it comes to an international transaction they will face issue and have to wait too long to reach their destination but in cryptocurrency there is no border, you can simply send and receive Bitcoin from anywhere, all you need is internet.
Can Bitcoin really weaken the Local Currencies in the Developing Nations?
I am sure that bitcoins can influence the local currencies of developing nations. But if this is actually weaking or more a strengthening remains to be seen. Of course the IMF is against crypto currencies because he can't go to national governments and ask for crypto money to lend out to troubled countries. For developing countries with weak local currencies I think they will get positive effects from crypto investments. For example if a country struggles with inflation their currency will fall, but their investment in crypto currencies will not be affected. Its a good way to reduce the dependency on the local economy.
Can Bitcoin really weaken the Local Currencies in the Developing Nations?
To answer the question briefly: yes. But this is nothing new. The value of a country's fiat currency is basically influenced by three factors: the strength of the domestic economy, the amount of money in circulation, and the demand for that currency.
If one or more of these factors are bad then the currency loses value and becomes weak. This can be seen very well in Turkey at the moment. The economy is stumbling, and a lot of cheap money is being printed, which is currently pushing inflation up to 20+%. This also reduces demand, because no one wants a weak currency with high inflation. Many bring their money in Turkish currency in safety, and exchange it into the USD, the Euro, gold or Bitcoin.
Usage wise? I won't go with Bitcoin and I'd rather use the traditional fiat even in my bills payment, etc..
You may ask why? Because Bitcoin is still on the part of just being kept, a reserve, a investment, or whatever they call it now.
Will you really risk using it now rather than keep it and hope for doubling your money?
I would use it for experience, but will not be as my daily money for purchases. It's been around for a long time and I can't see merchants opening that payment method so how come it's a danger to anyone. The banking industry is the one who is in danger if they will have nothing to invest due to their customers purchasing Bitcoin instead of keeping it in the bank vault.
You may ask why? Because Bitcoin is still on the part of just being kept, a reserve, a investment, or whatever they call it now.
Will you really risk using it now rather than keep it and hope for doubling your money?
I would use it for experience, but will not be as my daily money for purchases. It's been around for a long time and I can't see merchants opening that payment method so how come it's a danger to anyone. The banking industry is the one who is in danger if they will have nothing to invest due to their customers purchasing Bitcoin instead of keeping it in the bank vault.
Globalized economic development has resulted in increased polarization between the rich and poor on a global scale .... the economy is now scary since there has always been a lot of corruption in governments and especially now there are more and more people cheating people now starving others homeless have difficulty buying food their budget is not enough because the economy is really covered by the governments law and hopefully this economy will be reduced and they will see the hardship inflicted on the economy of country. and hopefully the crypto currency will not be affected in the world especially the bitcoin that is there and also helps the economy to protect the crypto currencies ..
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