The Danger of Local Economy. - page 2.

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Quote from: fara_buduk on December 15, 2021, 05:12:35 PM

Quote from: Zilon on December 15, 2021, 08:44:44 AM

Quote from: Agbe on December 10, 2021, 04:21:03 PM

Can Bitcoin really weaken the Local Currencies in the Developing Nations?

This is one of those blogs that wishes to stare up reactions from there blogs there is only little Bitcoin can do. Bitcoin might weaken local currencies in developed countries but to an extent and can't replace local currencies due to its high volatility and instability in price. Many developed countries are still scared of Bitcoin to be more precise because of its decentralized nature which makes it more difficult to centralize

right bro....
even though we know the development of online shops, e-commerce, and marketplaces, there have been many digital payments, but using bitcoin in general is very difficult, maybe most e-commerce will use their own more stable tokens or other stable coins.

but for my country, where cryptocurrencies have not been legalized, it is difficult to announce payments with tokens. maybe in the future we will find it but not for now. I also realized that many of them use digital money for payment via deposit, but the digital money has also been registered by the government so that it is freely used for transaction purposes.

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Quote from: Zilon on December 15, 2021, 08:44:44 AM

Quote from: Agbe on December 10, 2021, 04:21:03 PM

Can Bitcoin really weaken the Local Currencies in the Developing Nations?

This is one of those blogs that wishes to stare up reactions from there blogs there is only little Bitcoin can do. Bitcoin might weaken local currencies in developed countries but to an extent and can't replace local currencies due to its high volatility and instability in price. Many developed countries are still scared of Bitcoin to be more precise because of its decentralized nature which makes it more difficult to centralize

right bro....
even though we know the development of online shops, e-commerce, and marketplaces, there have been many digital payments, but using bitcoin in general is very difficult, maybe most e-commerce will use their own more stable tokens or other stable coins.

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Quote from: Agbe on December 10, 2021, 04:21:03 PM

Can Bitcoin really weaken the Local Currencies in the Developing Nations?

This is one of those blogs that wishes to stare up reactions from there blogs there is only little Bitcoin can do. Bitcoin might weaken local currencies in developed countries but to an extent and can't replace local currencies due to its high volatility and instability in price. Many developed countries are still scared of Bitcoin to be more precise because of its decentralized nature which makes it more difficult to centralize

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Quote from: michellee on December 13, 2021, 02:24:22 AM

Quote from: BuNga_cute on December 12, 2021, 01:27:30 AM

Quote from: michellee on December 11, 2021, 11:15:10 PM

Crypto assets may displace local currencies as we saw with El Salvador but it will not weaken the local currencies if the government still decide to use their currency besides using crypto. Bitcoin can take over the internet for online transactions besides using existing transactions that people already used. But I still do not see bitcoin as a threat to local currency as long as the government can be wise to treat how to use bitcoin besides their local currency. If they can work together, I am sure that can help the economy of the people and also the country economy.

I think it's too much for the government to see Bitcoin as a threat to the local currency. Because not all areas can be reached by Bitcoin,
and there are also some transactions that are convenient to do in local currency as opposed to using Bitcoin. After all, the local currency is
still very important, after all, the majority of the world's population still believes in fiat compared to Bitcoin. So the collaboration between
local currency and Bitcoin will complement each other, indeed from the beginning Bitcoin was created not to replace fiat, but as an alternative
payment that can facilitate human life. I also really hope the government can be open-minded and treat Bitcoin more wisely, so many people
will receive the benefits and the country's economy should also get better.

We can think like that but unfortunately, we do not know how those people in the government reacted to bitcoin because most of them are old people who do not want to see a change in their places and do not want to lose their power. They do not want to learn about bitcoin and consider that bitcoin can weaken their power to control their economy because it is about personal management of their funds. If the local currency and bitcoin can collaborate and help their people, that can give more chances for their people to have a better life and the government can still watch their transactions from the banks. Yes, it needs an open-minded from them and how they can be wise to treat bitcoin.

What you're saying makes a lot of sense, it is a fact that the majority of countries in the world are governed by old people who do not want any
change. Unlike El Salvador, which has a young president, hence the government of El Salvador made a very bold decision. By legalizing Bitcoin as
a legal tender and not necessarily dare to be done by big countries. So it is indeed very difficult and may take time to awaken the majority of
countries in the world to support Bitcoin. Maybe if the country of El Salvador experienced a drastic economic increase it could make other countries
no longer consider Bitcoin as a threat. So for now we as Bitcoin supporters have to be patient to see Bitcoin legalized in many countries.

Anguwa

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Quote from: Agbe on December 10, 2021, 04:21:03 PM

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?

Actually, think no, bitcoin can not weaken the local currency completely. Both bitcoin and local currencies has a great role to play in the economic development of the nation, bitcoin gives some influence to the local currency because some time the price of bitcoin in the market have effect to some local currency values, but government may not allow bitcoin to have the overall control over the local currency, so it's not possible for developing countries local currency to be over powered by bitcoin.

fiulpro

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Quote from: Agbe on December 10, 2021, 04:21:03 PM

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?

Why do you think that the economically challenged Nations are investing in cryptocurrencies as well ? Why do you think that their government is allowing cryptocurrencies like bitcoins to integrate with their economic system?? They are not really stable as a whole right now so the government can take on such experiments, why do you think El Salvador was the first one and not UK or US?? Because the already developed nations do not need a second stability pillar perse, won't hurt them to add that. I don't think it would destroy the local currencies I think it would actually be super good for them !! It's going to allow people, local people to trade efficiently without third parties and take their business internationally as well.

barabarian1

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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.

michellee

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Quote from: BuNga_cute on December 12, 2021, 01:27:30 AM

Quote from: michellee on December 11, 2021, 11:15:10 PM

Crypto assets may displace local currencies as we saw with El Salvador but it will not weaken the local currencies if the government still decide to use their currency besides using crypto. Bitcoin can take over the internet for online transactions besides using existing transactions that people already used. But I still do not see bitcoin as a threat to local currency as long as the government can be wise to treat how to use bitcoin besides their local currency. If they can work together, I am sure that can help the economy of the people and also the country economy.

I think it's too much for the government to see Bitcoin as a threat to the local currency. Because not all areas can be reached by Bitcoin,
and there are also some transactions that are convenient to do in local currency as opposed to using Bitcoin. After all, the local currency is
still very important, after all, the majority of the world's population still believes in fiat compared to Bitcoin. So the collaboration between
local currency and Bitcoin will complement each other, indeed from the beginning Bitcoin was created not to replace fiat, but as an alternative
payment that can facilitate human life. I also really hope the government can be open-minded and treat Bitcoin more wisely, so many people
will receive the benefits and the country's economy should also get better.

We can think like that but unfortunately, we do not know how those people in the government reacted to bitcoin because most of them are old people who do not want to see a change in their places and do not want to lose their power. They do not want to learn about bitcoin and consider that bitcoin can weaken their power to control their economy because it is about personal management of their funds. If the local currency and bitcoin can collaborate and help their people, that can give more chances for their people to have a better life and the government can still watch their transactions from the banks. Yes, it needs an open-minded from them and how they can be wise to treat bitcoin.

molsewid

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Quote from: 24Kt on December 12, 2021, 06:50:18 PM

Up until now, crypto transactions are still small compared to fiat transactions. So I don't see it as a replacement for fiat transactions especially that governments will still keep their local fiat, because they have the full control of its existence. We may see crypto adoption but it doesn't mean, it is going to displace the local currency of the country. Unless, the government itself declare that crypto or btc is their main legal tender.

Yes, crypto transactions are still small compared to fiat transactions because many of the countries are not yet accepting the possibility that bitcoin may be used as another currency that will be circulated in their economy aside from fiat. So far there's no clear evidence or study that will show bitcoin will be a danger to the local economy but if it would be proven I think the Local economy will not only be the most affected but also the international fiat that used today as a means of the main transaction like $. In my own perception if bitcoin will be used in a wide adoption it would be first used via international trades.

24Kt

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Quote from: V-t.Ester on December 12, 2021, 06:42:02 PM

Blockchain is transparent. If you will make your own investigation you will find out that the most amount of BTC is concerned in limited number of wallets. Most of those wallets belong to huge corporations that invested in BTC huge amounts of money and now hodl it. So when press is talking about Bitcoin online transaction possibly they are mostly talking about small transactions. Can huge amount of small transactions effect on economic condition of developing countries? I doubt that BTC have such huge influence and can displace local currencies of developing countries. I think that banks of those countries will quicker provide CBDCs and displace local paper money on digital money by themselves.

Up until now, crypto transactions are still small compared to fiat transactions. So I don't see it as a replacement for fiat transactions especially that governments will still keep their local fiat, because they have the full control of its existence. We may see crypto adoption but it doesn't mean, it is going to displace the local currency of the country. Unless, the government itself declare that crypto or btc is their main legal tender.

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Blockchain is transparent. If you will make your own investigation you will find out that the most amount of BTC is concerned in limited number of wallets. Most of those wallets belong to huge corporations that invested in BTC huge amounts of money and now hodl it. So when press is talking about Bitcoin online transaction possibly they are mostly talking about small transactions. Can huge amount of small transactions effect on economic condition of developing countries? I doubt that BTC have such huge influence and can displace local currencies of developing countries. I think that banks of those countries will quicker provide CBDCs and displace local paper money on digital money by themselves.

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Quote from: Agbe on December 10, 2021, 04:21:03 PM

~snipe~

Bitcoin might have been all over the place, making waves in almost all spheres as we see it today but positive and negative as a part of its revolution but, its far from taking over traditional currencies, neither have it become the most used for electronic transactions.

Mind you, many merchants are yet to understand let alone, use it for a medium of exchange in there various business. With governments of the world still taking a stand against its legitimacy for a currency, it becomes so difficult to attain the global recognition and acceptance that it needs to serve a broader purpose for a means of some livelihood.

When it gets accepted on a broader scale, I don't think it would be some exclusive kind of relationship between the virtual and fiat currency but they would evolve some kind of relationship that would make them both stronger in the spheres they operate.

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Quote from: ItsEzMkay on December 12, 2021, 04:02:40 AM

Quote from: Agbe on December 10, 2021, 04:21:03 PM

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?

I don't think it would weaken them. I believe it would usurp them, in a good way though even that word means not. And that would probably be a net positive for that state. They wouldn't have as high as inflation rate, and could save money on transfer fees. Be borderless. Be decentralized. The list goes on and on. El Salvador will tell us a lot, and I believe it will be positive for sure.

I believe that very weak local economies, in places like El Salvador, it is quite obvious that even without crypto they were not doing amazing. Imagine this; they are investing few hundred millions of dollars into bitcoin because that is what they can afford as the whole government, whereas Tesla invested 1.5+ billion dollars just themselves. Any nation that has a smaller marketcap as government funding than Tesla should be considered a small country.

I am not saying that they can't, like for example my nation is not rich at all but they can invest more than 1.5 billion dollars, in fact we make 100 billion dollars loss every year, what is 1.5 more? But they won't, I am not talking about the ones that won't, I am talking about the ones that can't even if they wanted to. Those nations have horrible finances without crypto anyway, and crypto could only be salvation for them.

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Quote from: Agbe on December 10, 2021, 04:21:03 PM

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?

It's difficult to say at this point what will be the effect of crypto on local economies but yes currencies will obviously not survive if crypto becomes mainstream. Think of it yourself why would anyone want an additional currency when there is a big currency which everyone is using, moreover it's just a myth these days that everyone can't do online transaction, I have even seen street vendors in my city accepting Payments digitally. In India especially UPI has brought a revolution and this can also help people in adoption of Cryptocurrencies.

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Many have been asking about a source for the info about the IMF, and I don't think anyone provided it yet (sorry if I missed it), so here's something I found. It's from summer of this year, and I guess that since it has authors and is in the blog section, it's more like an opinion article rather than an official position of the IMF. But the only thing I could see here is actually quite far from the claim the op makes:

Quote

Some countries may be tempted by a shortcut: adopting cryptoassets as national currencies. Many are indeed secure, easy to access, and cheap to transact. We believe, however, that in most cases risks and costs outweigh potential benefits.

As for Economic Confidental, I believe here's the article from there. Oh, and through info in this article I think I found the real source, which is an article on IMF blog by the same authors as the one I linked earlier. Here I see the following:

Quote

Some emerging markets and developing economies face more immediate and acute risks of currency substitution through crypto assets, the so-called cryptoization. Capital flow management measures will need to be fine-tuned in the face of cryptoization.

But again, I'm not sure that it's not merely a position of these authors, and I see no evidence here being provided to back up the claim.

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Quote from: Agbe on December 10, 2021, 04:21:03 PM

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?

Cryptocurrency is really taking over the internet for online transactions. However, this does not mean that it is used as a means of payment, so that it could displace the local cryptocurrency. Anyway, I don't think bitcoin is widely used as a means of payment in developing countries. As a financial asset that is growing in value and therefore being held massively, it can be. Various top altcoins have been used as a means of payment for a long time. And this is the harsh truth. But after all, in order for the cryptocurrency to be used as a means of payment, one desire is not enough. We also need to create an infrastructure for its walking. And the states are not interested in this. Although the situation may still change.

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Quote from: Agbe on December 10, 2021, 04:21:03 PM

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

No bitcoin is never the reason that local currency of developing nations are suffering. Such countries have not kept to the real indices of building economy that will help there currency. It is the system of the country and the ways that they are corrupt determines the economic progress. For example if a country is an exporting country it will help her foreign exchange.

Quote from: Agbe on December 10, 2021, 04:21:03 PM

Can Bitcoin really weaken the Local Currencies in the Developing Nations?

Bitcoin has no business with devaluing any country's currency or that of developing countries. Any country whose country is falling is not bitcoin fault but leadership issue.

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Quote from: Agbe on December 10, 2021, 04:21:03 PM

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?

I live in a developing country and still don't have any businesses, establishments, services... that accept bitcoin payments, but that doesn't mean my country will always be. Although, developing countries are seriously lacking in IT infrastructure, even some areas don't have internet infrastructure yet… It's difficult and I think it will take a long time to adopt the culture or the message that bitcoin brings.

Inflation is the main cause of the loss of value of local fiat. Bitcoin is the Light that can pull us out of that grave.
Specifically: The US has the highest inflation rate of 6.8% in the past 40 years. It is the number 1 country in the world. Imagine how high the rates would be in developing countries. Lol

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Quote from: Xampeuu on December 12, 2021, 05:20:04 AM

Quote from: BuNga_cute on December 12, 2021, 01:27:30 AM

Quote from: michellee on December 11, 2021, 11:15:10 PM

Crypto assets may displace local currencies as we saw with El Salvador but it will not weaken the local currencies if the government still decide to use their currency besides using crypto. Bitcoin can take over the internet for online transactions besides using existing transactions that people already used. But I still do not see bitcoin as a threat to local currency as long as the government can be wise to treat how to use bitcoin besides their local currency. If they can work together, I am sure that can help the economy of the people and also the country economy.

I think it's too much for the government to see Bitcoin as a threat to the local currency. Because not all areas can be reached by Bitcoin,
and there are also some transactions that are convenient to do in local currency as opposed to using Bitcoin. After all, the local currency is
still very important, after all, the majority of the world's population still believes in fiat compared to Bitcoin. So the collaboration between
local currency and Bitcoin will complement each other, indeed from the beginning Bitcoin was created not to replace fiat, but as an alternative
payment that can facilitate human life. I also really hope the government can be open-minded and treat Bitcoin more wisely, so many people
will receive the benefits and the country's economy should also get better.

Of course, if the government is worried about the presence of bitcoin, they can make clear regulations, so that both can be used side by side with clear strata. the possibility that later it will also not be able to resist the development of the era in the digital world, such as elsalvador which can be used as a model to further refine existing regulations

EI Salvador is a place where many people are against the current regulation with bitcoin quite a lot, a lot of classes feel more stable with the local currency but the government here is too harshly suppressing these classes, this model is very fragile when bitcoin is in critical condition, especially the recent dilution, believe that a lot of the shouting of the insurgency is attacking with the EI Salvadoran authorities. In order for bitcoin to have integration and cohesion of contracts and relationships, localities should only offer investment funds, turning it into currency causes a lot of obstacles.

davis196

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Cryptocurrencies cannot weaken local fiat currencies,because local fiat currencies were already weak,before the creation of cryptocurrencies.
Local fiat currencies of the underdeveloped are weak due to the wrong monetary and fiscal policies of the underdeveloped countries,which lead to high inflation and fiat currency devaluation.Blaming cryptocurrencies for the mistakes made by the governments is a pretty stupid attempt to manipulate ignorant people in those countries into hating the crypto industry.
I'm not convinced that the cryptocurrencies will take over fiat currencies in the underdeveloped counties,because there's a high amount of people,who don't have computers with internet access in these countries.

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