The Danger of Local Economy. - page 3.

Xampeuu

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Quote from: BuNga_cute on December 12, 2021, 02:27:30 AM

Quote from: michellee on December 12, 2021, 12:15:10 AM

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

ItsEzMkay

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Quote from: Agbe on December 10, 2021, 05:21:03 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.

BuNga_cute

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Quote from: michellee on December 12, 2021, 12:15:10 AM

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.

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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.

Sayeds56

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Quote from: Agbe on December 10, 2021, 05:21:03 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 think it can weaken US Dollar and it is already doing it as number of transaction to buy good and services by using crypto is increasing worldwide but not local currencies. In fact in third world countries there is huge trend in youth and IT Professionals to invest/trade in crypto currencies to generate income as well as through mining, airdrops and bounties and local economy takes benefit of it.

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Quote from: Darker45 on December 11, 2021, 09:15:43 PM

Quote from: Hispo on December 11, 2021, 08:13:22 AM

Quote from: The Sceptical Chymist on December 11, 2021, 07:55:44 AM

Quote from: Darker45 on December 10, 2021, 09:41:24 PM

~snip~

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.

It's nice to hear from somebody who has really experienced things first hand.

So, indeed, there is crypto adoption in Venezuela although not as wide as crypto publications might seem to portray. In other words, fiat still rules the country, although not anymore the local Venezuelan Bolivar.

By the way, how do these shops accepting Bitcoin, like the candy and the department shops that you mentioned, manage the fluctuating Bitcoin fees? Is the Lightning Network being used there already?

Just like El Salvador, LN must be used also in many places and the rest in South America.

Venezuela has an option now with crypto's existence, unlike El Salvador who has no option back then but to only adopt USD. Now 3rd world or developing countries have the option to use BTC to go around economic sanctions. IMF always has to do with sanctions so if they publish things like this, it's not going to be surprising. OP didn't add the link to the source I kept searching for it but none.

Hispo

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Quote from: Darker45 on December 11, 2021, 09:15:43 PM

Quote from: Hispo on December 11, 2021, 08:13:22 AM

Quote from: The Sceptical Chymist on December 11, 2021, 07:55:44 AM

Quote from: Darker45 on December 10, 2021, 09:41:24 PM

~snip~

-snip-

By the way, how do these shops accepting Bitcoin, like the candy and the department shops that you mentioned, manage the fluctuating Bitcoin fees? Is the Lightning Network being used there already?

The department store uses a payment processor called "crypto-buyer" which is also a not custodial exchange which allows to convert Bolivars into crypto and vise-versa.

In the case of smaller shops they can opt to hold they crypto the earn or make use of very popular apps which allow them to convert easily to stablecoins, like Binance, Reserve or Uphold.

For now lightning network is not common here, bussinesses usually manage on-chain transactions, that it one of the reasons the average venezuelan Bitcoiner also have some altcoins like Litecoin, Dash, ect. In order to avoid fees if one needs to buy small things, for bigger transactions we use BTC or ETH, so the fees can be neglected when compared to the price of the product.

Allow me to share a pic of the candy shop.

Gyfts

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No, because developing communities are not going to use Bitcoin, and that's okay.

Any crypto advocate's goal should not be that every country in the world adopts bitcoin, realistically that'll never happen. The goal of people in developing countries is merely to survive, not to thrive and so there is no incentive for them to adopt a technological "digital" currency, when they probably don't even have access to clean water, let alone any reliable electricity.

Bitcoin's adoption remains solely on large countries shift away from traditional currency systems. Whether someone in Syria or Afghanistan adopts Bitcoin is completely irrelevant to the global economy. There aren't any developing countries that have a large GDP for their economic activities to matter in the first place.

Darker45

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Quote from: Hispo on December 11, 2021, 08:13:22 AM

Quote from: The Sceptical Chymist on December 11, 2021, 07:55:44 AM

Quote from: Darker45 on December 10, 2021, 09:41:24 PM

~snip~

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.

It's nice to hear from somebody who has really experienced things first hand.

So, indeed, there is crypto adoption in Venezuela although not as wide as crypto publications might seem to portray. In other words, fiat still rules the country, although not anymore the local Venezuelan Bolivar.

By the way, how do these shops accepting Bitcoin, like the candy and the department shops that you mentioned, manage the fluctuating Bitcoin fees? Is the Lightning Network being used there already?

bhooscream

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In my country exactly not. Because Bitcoin cannot be used for payment.
Additionally we can also see the positive impact of technology in which this can help local economic or communities to enhance their oerformance, financial syatems, and also the qays or strategy to boost the local economy. Online marketing will help so much, so it doesn't weaken the local communities.
It means that ut may depwnd on what kind of local economy, but so far afaik, this will help, not to weaken.

syedzakir

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As now-a-days bitcoin transactions are increasing day by day on the internet so the value of the local currency is affected by this.
As some of the countries don't even know about the e-currency so they are having affect on their economy as well.
But those countries which are already using bitcoin are becoming stronger and more more stable.

Doell

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no news yet regarding what OP wrote ,which developing country he is referring to neither ! local currency is still in great demand and is a top priority in physical trading etc. ,many people's minds are still not open thinking about bitcoin how the currency weakens because of bitcoin ! That is not true ^{this is a hidden message?}

so98nn

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I barely doubt that. Moreover it’s funny why they are stating this for the developing nations ? I mean they are the one who are worst hit by the government slap for not using the crypto and banning it throughout the nation. They already don’t have that much infra or peeps from developing countries are not that much interested in the same.

I can understand if this statement was made for developed country where the use is way heavy than any other nation. Whether it is bitcoin mining, developing new projects, bitcoin ATM or paying online everything is available at their places and they should be one who are scared of replacing the Fiat economy with crypto economy.

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Quote from: The Sceptical Chymist on December 11, 2021, 07:55:44 AM

Quote from: Darker45 on December 10, 2021, 09:41:24 PM

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.

The Sceptical Chymist

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Quote from: Darker45 on December 10, 2021, 09:41:24 PM

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:

Quote from: Agbe on December 10, 2021, 05:21:03 PM

Bitcoin is taking over the internet for online transaction

Bitcoin has been around since 2009, and most people still don't own any--and pretty much everyone uses the internet. So that should tell you with no ambiguity that bitcoin hasn't gained any dominance over traditional payment methods. A lot of people shop on Amazon and related retailers online, and what do people have to pay with? Their credit or debit cards, not bitcoin. Bitcoin isn't even close to "taking over the internet for online transaction(s)".

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Quote from: Agbe on December 10, 2021, 05:21:03 PM

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

I would contend bitcoin will make local currencies in developing nations stronger.

The way competition between AMD and intel forces both to develop stronger processors. Iron sharpens iron. Initially, locally currencies might weaken. The long term outlook however could see local currencies adjust to become more competitive and offer better terms to consumers.

Regulators and heads of local currency management can be happy that bitcoin might create incentive for them to do a better job serving the public benefit. Bitcoin is a win/win scenario for them as well.

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Quote from: Agbe on December 10, 2021, 05:21:03 PM

because developing Nations are not inclined in the e-currency transaction while the new generation youths use the e-currency for transactions.

There's a conflict in what you've said. It's actually the opposite in developing countries if you look at the stats about them on how verse the people there are with cryptocurrencies, you'll see good stats and volume from within. And in these developing countries, it's not only the youths are into crypto but it's on different ages of the society.

Quote from: Agbe on December 10, 2021, 05:21:03 PM

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

No.
Bitcoin or crypto could even fuel the local economy which includes the local currency for that country if most people are contributing a lot to them through their earnings in cryptocurrencies.

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We're seeing it in some poverty-stricken countries right now, and bitcoin has seen some increasing popularity and utility over these areas. In countries where their local currencies are massively devalued, bitcoin offers an avenue wherein they can still purchase goods and services and getting most out of their money.

Then again, it can only be used side-by-side and not replace fiat currencies. We are far from it, given how small the merchant infrastructure and network is for bitcoin and cryptocurrencies.

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Bitcoin probably will not be able to, but I believe that after years some states will introduce digital money, since this is a common money evolution.

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Quote from: Agbe on December 10, 2021, 05:21:03 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?

We have seen Bitcoin on several count Bitcoin weakening the local currencies of many countries even after the introduction of e-currencies many still choose crypto over e-currencies both for transaction and reserve but crypto will never replace e-currencies because the government from the onset has not been in support of them and might not be even in the nearest future

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