Why local currencies when there is bitcoin ?

tbct_mt2

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Quote from: arwin100 on July 24, 2023, 07:57:19 AM

No data yet showing that it help improve the economy since country like El Salvador seems struggling since bitcoin is really unpredictable in terms of its movement. But once they experience all scenarios for sure that country can see some change on its financial system or maybe the economy might get a good boost if there's good events will occur in the market. For now lets see how their adoption go and if they fail or succeed with this action they do.

El Salvador are doing like investing in Bitcoin and it can help they increase value of their national treasury. If they succeed, it is helpful for their national treasury but not for their financial system.

Their financial system only can be improved if they change its structure and operation. Bitcoin can not change El Salvador financial system if it is only one of assets in their national treasury.

Their nation can be richer if they succeed with Bitcoin investment but their finance will be the same if no structural things have been changed.

arwin100

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Quote from: Tony116 on July 23, 2023, 09:05:10 PM

Quote from: Becassine on July 19, 2023, 04:18:06 PM

Quote from: Texac on July 19, 2023, 06:57:05 AM

Yes, some people don't see bitcoin as an investment, and they are using it as a currency, I was wrong to rush to conclude it's just an investment. but the number of people using it as a currency is few, if not scarce.
Do you have any evidence that bitcoin is benefiting a country's economy, let alone the impact of the world economy? not even Satoshi mentioned that bitcoin has a mission or ability to fix the economy.

Proof I don't know, but when big brands start accepting bitcoin, something is changing. We could cite Pick n Pay (https://cointelegraph.com/news/retail-giant-pick-n-pay-to-accept-bitcoin-in-1-628-stores-across-south-africa) in Africa or even McDonald's, without forgetting luxury brands.

Even the famous brand in New-York Jacob and Co (watches) created a luxury bitcoin watch (https://www.cointribune.com/jacob-and-co-montre-astronomia-solar-bitcoin/)

Bitcoin adoption is still at an experimental level, so it is difficult to say whether it will benefit the national or world economy. Furthermore, when bitcoin is only used as a speculative asset (what's going on) it can't really generate any national interest. We need more time for bitcoin adoption to become more popular, more people to adopt it in real life, then we will see how impactful it is. It is too early to say that bitcoin is benefiting and improving the world economy, but it is also impossible to conclude that it will never bring any benefit.

No data yet showing that it help improve the economy since country like El Salvador seems struggling since bitcoin is really unpredictable in terms of its movement. But once they experience all scenarios for sure that country can see some change on its financial system or maybe the economy might get a good boost if there's good events will occur in the market. For now lets see how their adoption go and if they fail or succeed with this action they do.

Weawant

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Quote from: Emmanuelex on July 23, 2023, 03:34:22 AM

When you say they have 80 types of local currencies, so that means like having different currencies for each state or what? Isn't that a waste of time and stressful? It's not really making any sense to me, there should be just one currency in every country and that's how it's been. And as far as I know, French makes use of euro right?

It's not a waste, it might make the states be more united, is like having something that's just unique to only those in that state. I could see how this will work and it might be more better than having one centralized fiats as we do in most part of the world using one currency.

Just because that's how something has been doesn't mean we shouldn't change it or try to make it better and that's why Bitcoin was invented to change the way we see money. Before Bitcoin was invented everyone sees money been controlled by the government.

Bitcoin is yet to be accepted in France but the 80 local currency are accepted since they're also fiats and can be controlled by the government of the states where the local currency are operating, maybe they won't be needed when Bitcoin gets full adoption in France.

purinZ14

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I’ve never heard of multiple local currencies for one country. Even if you search for the definition of local currency it says that it’s the most commonly used currency in a country. I’m aware that they’re talking about fiat and that you’re not hence I’m confused as to what does local currencies actually mean. Nevertheless, fiat or not I think they can function a little differently than btc. Especially in countries where btc isn’t widely used yet, it’ll be hard for you to make use of btc for transactions within that country.

Tony116

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Quote from: Becassine on July 19, 2023, 04:18:06 PM

Quote from: Texac on July 19, 2023, 06:57:05 AM

Yes, some people don't see bitcoin as an investment, and they are using it as a currency, I was wrong to rush to conclude it's just an investment. but the number of people using it as a currency is few, if not scarce.
Do you have any evidence that bitcoin is benefiting a country's economy, let alone the impact of the world economy? not even Satoshi mentioned that bitcoin has a mission or ability to fix the economy.

Proof I don't know, but when big brands start accepting bitcoin, something is changing. We could cite Pick n Pay (https://cointelegraph.com/news/retail-giant-pick-n-pay-to-accept-bitcoin-in-1-628-stores-across-south-africa) in Africa or even McDonald's, without forgetting luxury brands.

Even the famous brand in New-York Jacob and Co (watches) created a luxury bitcoin watch (https://www.cointribune.com/jacob-and-co-montre-astronomia-solar-bitcoin/)

Bitcoin adoption is still at an experimental level, so it is difficult to say whether it will benefit the national or world economy. Furthermore, when bitcoin is only used as a speculative asset (what's going on) it can't really generate any national interest. We need more time for bitcoin adoption to become more popular, more people to adopt it in real life, then we will see how impactful it is. It is too early to say that bitcoin is benefiting and improving the world economy, but it is also impossible to conclude that it will never bring any benefit.

Emmanuelex

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When you say they have 80 types of local currencies, so that means like having different currencies for each state or what? Isn't that a waste of time and stressful? It's not really making any sense to me, there should be just one currency in every country and that's how it's been. And as far as I know, French makes use of euro right?

Mauser

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Quote from: Becassine on July 17, 2023, 03:28:09 PM

I don't know what it is in other countries but in France there are local currencies, about 80.

That's the first time I am hearing about this. How can there be 80 different local currencies? Aren't people using the Euro anymore? It sounds a bit crazy for a country to have so many different type of currencies. In case there are fixed exchange rates between the Euro and the local currencies I wouldn't give too much weight for them, but if they are all trading freely and are being used in large scales it's an interesting phenomen. For small local communities it might work out to use their own currencies, however if you are traveling to the other side of France you will likely struggle to use your money. Bitcoin could be a great alternative for these communities that want to be independent from the Euro and have control over their own money. As long as France is not baning the use of crypto currencies there shouldn't be any problem for people to switch. The only problem could be if a large fraction of elderly people are using these local currencies, it might be hard for them to get used to bitcoins.

BlackBoss_

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Quote from: worldofcoins on July 20, 2023, 11:24:21 AM

Local currency?, do you mean a country's local currency or each town or state having its own currency?, Yes there are benefits of having local currency since you aren't only limited to bitcoin.
Local currency payment is instant-
For example, you're paying at a restaurant where you need instant payment rather than waiting for Bitcoin transfer (which can take up to an hour sometimes if you are unlucky)

Bitcoin on-chain transactions require times in average 10 minutes to get a first confirmation. Sometimes it is faster than 10 minutes, sometimes is much longer like 30 hours or 1 hour or longer if you use too low fee rate.

If needing a faster confirmation, use higher fee rate or consider to use off chain with Lightning network. The adoption of Lightning network is less than Bitcoin on-chain transactions but it is still an option.

Quote

Local currencies are fast in transaction compared to Bitcoin so I'm sure there are reasons people prefer both Bitcoin and local currencies (Look at a common example i presented above)

Bitcoin on-chain, Bitcoin on Lightning network, local currency and bank transfer, I think we need them all.

worldofcoins

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Quote from: Becassine on July 17, 2023, 03:28:09 PM

A friend was bragging to me about the merits of her local currency, but I wonder what's the point since we have bitcoin? Bitcoin which obviously includes the world population.

Local currency?, do you mean a country's local currency or each town or state having its own currency?, Yes there are benefits of having local currency since you aren't only limited to bitcoin.
Local currency payment is instant-
For example, you're paying at a restaurant where you need instant payment rather than waiting for Bitcoin transfer (which can take up to an hour sometimes if you are unlucky)

Quote from: Becassine on July 17, 2023, 03:28:09 PM

I did not really understand the objectives of these local currencies, I was wondering if local currencies existed in other countries and if people understood the interest of these local currencies which seem to undergo inflation like the fiats.

Local currencies are fast in transaction compared to Bitcoin so I'm sure there are reasons people prefer both Bitcoin and local currencies (Look at a common example i presented above)

oashim74

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Using Bitcoin as a local currency is not viable. The currency is volatile and can have negative consequences on the local economy. National currencies can be controlled by monetary policies but bitcoin is an international currency that cannot be easily influenced. Bitcoin is growing to the stage when it will be stable but for now, using it as a currency will make these local economies unstable.

Woodie

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Quote from: The Cryptovator on July 17, 2023, 03:36:34 PM

I am perplexed about the term "local currency." If you are referring to your fiat currency, then there should only be one type used in a particular country since multiple currencies wouldn't be practical. Therefore, I don't understand how there could be 80 local currencies. Could you kindly provide more clarity on your concern? By doing so, we can better comprehend the context and provide appropriate answers or learn more about the topic.

Exactly what I thought!

And this being a cryptocurrency group/forum which is the closest thing to fiat...whenever someone talks about local currency then automatically what clicks to anybody is the person is talking about fiat!

So for me seeing that France 🇫🇷 has over 80 local currencies has really caught me off guard and definition given about the local currencies doesn't ring a bell either. Though the picture I had for having this many local currencies could have been attributed by the many tourists that come here and possibly illegal immigrants that create their own black markets to keep trading, but with this I don't know now Roll Eyes

Becassine

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Quote from: Promocodeudo on July 20, 2023, 07:59:53 AM

No one will like to invest their money in what they don't know, such people will continue to use the local currency which is the fiat irrespective of the inflation that may have befallen their country, yes we know that life is a risk, but does that mean people should do what they are not conversant with.

As I explained, these french local currencies are not fiat currencies. You can't put them on a bank account and you can't use them outside a specific city or several cities.

Onyeeze

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Quote from: SmartGold01 on July 17, 2023, 05:37:48 PM

Something very confusing here, a local currency they said?
Immediately I saw the title in my thoughts I was having this feeling to be a fiat because what i understood by local currency is their native currency that is generally used by that country without extension to other neighboring country which if one wanna ship or export goods they must need such local currency to be able to acquire goods from that country. And this is my first time of hearing about this.

When you made mentioned of local currency we are referring for traditional currency and that traditional currency is fiat currency, so I know quite well that cryptocurrency which we made mentioned of is a digital currency and it have a limit of what bitcoin can be use to import and export depending on the deals between the importer or exporters with the companies, some countries accept bitcoin for buying of goods and services and some countries don't accept bitcoin because it's not widely accepted as currency in that country,

Promocodeudo

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There is freedom of choice, whatever choice individuals make is their own decision, when it comes to Bitcoin I must tell you practically that, so many people do not have good knowledge about Bitcoin, despite seeing the advertisement on social media, some of them are still afraid to invest in it or use it.

No one will like to invest their money in what they don't know, such people will continue to use the local currency which is the fiat irrespective of the inflation that may have befallen their country, yes we know that life is a risk, but does that mean people should do what they are not conversant with.

No doubt, Bitcoin has advertised itself, but the fact is that some people are still not aware of the innovations and how the system works, I believe that there are people who love this great decentralized system innovation but lack the knowledge to operate with it.

Becassine

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Quote from: Texac on July 19, 2023, 06:57:05 AM

Yes, some people don't see bitcoin as an investment, and they are using it as a currency, I was wrong to rush to conclude it's just an investment. but the number of people using it as a currency is few, if not scarce.
Do you have any evidence that bitcoin is benefiting a country's economy, let alone the impact of the world economy? not even Satoshi mentioned that bitcoin has a mission or ability to fix the economy.

Proof I don't know, but when big brands start accepting bitcoin, something is changing. We could cite Pick n Pay (https://cointelegraph.com/news/retail-giant-pick-n-pay-to-accept-bitcoin-in-1-628-stores-across-south-africa) in Africa or even McDonald's, without forgetting luxury brands.

Even the famous brand in New-York Jacob and Co (watches) created a luxury bitcoin watch (https://www.cointribune.com/jacob-and-co-montre-astronomia-solar-bitcoin/)

Texac

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Quote from: Becassine on July 18, 2023, 11:15:33 AM

Quote from: Texac on July 18, 2023, 10:03:46 AM

Quote from: Fiatless on July 18, 2023, 03:02:13 AM

Using Bitcoin as a local currency is not viable. The currency is volatile and can have negative consequences on the local economy. National currencies can be controlled by monetary policies but bitcoin is an international currency that cannot be easily influenced. Bitcoin is growing to the stage when it will be stable but for now, using it as a currency will make these local economies unstable.

Satoshi created bitcoin with its decentralized nature and peer-to-peer currency, to be an alternative to the fiat system that is becoming increasingly unstable every day. but we are using it as an investment, and it has become extremely volatile. how can a volatile asset become a solution to the economy? people continue to fantasize and exaggerate about the possibilities of bitcoin for the world economy, which is just too funny. so far, bitcoin is just an investment, and it will only be able to benefit some people who know how to take advantage of its volatility for profit, other than that, it cannot help the local economy or any country.

I absolutely do not agree. Investment for some and currency for others, all in one for still others. The experience of Bitcoin Beach which has been emulated (Bitcoin Ekasi for example) demonstrates that bitcoin can be used by everyone as a currency for daily transactions.

Yes, some people don't see bitcoin as an investment, and they are using it as a currency, I was wrong to rush to conclude it's just an investment. but the number of people using it as a currency is few, if not scarce.
Do you have any evidence that bitcoin is benefiting a country's economy, let alone the impact of the world economy? not even Satoshi mentioned that bitcoin has a mission or ability to fix the economy.

Captain Corporate

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Why would anyone want to be part of something that is global if they are doing fine though? There are rich nations, and there are poor nations, if we you make every single nation on the world use bitcoin, then the poor will be using what the rich does. Sure prices will still be different, what is 1 bitcoin here, will be 0.01 there, and that's understandable but at the end of the day macro economy will be the same and there is no need for that. Powerful nations makes sure that their money is stronger than others money so that they keep being in power. Thats one of the ways to provide proof they are the bigger and better nation, another would be military as well.

panganib999

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The merits of having a local currency is the convenience and show of power against other countries. It's also a standard that determines whether a country's economy is good enough, which will drive investors and companies to put in money for businesses and enterprises within that country. Many people see fiat as "toilet paper money" since we've been dealing with bitcoin for a while now and while the latter is superior, you can't say that fiat doesn't have its own merits. This only applies to countries with national currencies though so as for France who has 80, I don't know what the fuck is going on with them lol but if I had to guess it's just the old system clinging to life and relevance since they are getting curbstomped by other more powerful currencies.

Mr.suevie

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Quote from: Outhue on July 18, 2023, 03:17:22 AM

Local currency means fiat currency, that's what I think, correct me if I am wrong, well the thing is Fiat currencies are not all on the same level, some have higher value than the other, I prefer Dollar to my own local currency for this higher value reason, imagine someone bragging about USD vs my local currency, of cos it's worth bragging about when it has way more value than my local currency.

Now USD vs BTC is different, maybe that's what your friend doesn't understand, you don't have to argue with them, you just have to make them understand at least, all Fiat currencies are inflationary and BTC is deflationary, the demand and supply is incredible and way on top of every other Fiat currencies.

Hmm, I don't know about local currency actually been fully associated to fiat currency but with what the OP is trying to explain am pretty sure a country can't actually have about 80 fiat currency that are fully operational and used by the citizens of that particular region.

But if the users is actually trying to talk about fiat currency then am pretty sure every crypto enthusiast has same opinion on the inflationary nature of this fiat currency overtime.

Ultegra134

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Quote from: eightdots on July 18, 2023, 01:09:25 AM

Like you said, I think we're back to the old trading days. The existence of so many currencies is due to a lack of control. It is not right to free the markets so much. Like you, I thought at first that it was written about fiat money. However, the existence of these currencies is useless. Even if it works, its validity will be short-term.

Bitcoin has not yet reached the desired level. I'm not saying this in terms of Bitcoin's value. I mean it in the sense that bitcoin is accepted all over the world and is used as a currency in many places. If this happens, Bitcoin will replace any other currency.

Honestly, although there have been decent advancements in the past few years regarding Bitcoin, I doubt that it will ever reach that level. It's not that of a versatile cryptocurrency; high transaction fees and delays are often caused by network congestion, which renders Bitcoin not as efficient as it should be to function as a daily currency. Moreover, I don't believe that this was Bitcoin's intended purpose. On top of that, the majority of us also perceive Bitcoin as an asset; thus, we wouldn't use it like we'd use fiat. On the other hand, it's very possible to see other cryptocurrencies being used on a daily basis that offer faster and anonymous transactions.

Topic: Why local currencies when there is bitcoin ? (Read 484 times)