Topic: Will third world country hold their foreign reserve in bitcoin against Dollar? - page 3. (Read 2580 times)
June 14, 2017, 12:07:04 AM
Very risky to store foreign exchange reserves in the form of bitcoin, unstable btcoin price makes it impossible, the economy of a country must be stable so that the price of basic needs is also stable, if the foreign exchange reserves use the currency is not stable then the money flow will be disrupted
June 13, 2017, 05:10:59 PM
I believe at least Zimbabwe should try investing in Bitcoin.. if I were in their government I'd try swtiching to BTC instead of their mostly worthless currency
LoL. I do not think that this country will develop bitcoin in their currency system because no government will do that. They can not control the people if they let everyone use bitcoin. Moreover, I do not believe that everyone in Zimbabwe having a smartphone or computer 
June 13, 2017, 01:55:47 PM
Most of the third world country hold their foreign reserve in dollar. Do you think any of these third world country will accept Bitcoin and equally holds their foreign reserve in bitcoin instead of dollar form? In your own opinion what do you think will happen to such economy both in terms of positive and negative effects?
Hope you know that the reserve currencies are held in more than one currency and not in dollar alone.No country will be playing with their foreign reserves and they wont take any unnecessary risks as it could hurt their growth and it could lead to a huge debt and the main reason they wont accept bitcoin is simply because of its volatility and the price fluctuations is really huge to be accepted as a reserve currency. June 12, 2017, 03:19:18 PM
Forget replacing bitcoin there is not going to be a single country who is going to replace dollars with something else for foreign exchange as that would just leave us putting sanctions on that country and obviously all the puppet world leaders are going to follow them. Russia is surely a exception as they are the only one who can go against us and they have already introduced a new currency for foerign exchange.
June 12, 2017, 10:43:18 AM
Most of the third world country hold their foreign reserve in dollar. Do you think any of these third world country will accept Bitcoin and equally holds their foreign reserve in bitcoin instead of dollar form? In your own opinion what do you think will happen to such economy both in terms of positive and negative effects?
I wish that countries can hear this man. The problem right now is that third world countries are mainly exporting countries and are not importing - which means that the US basically buys everything they produce and pay in newly printed US dollars. This is a big problem and creates basically a dilemma.
The exporting country endsu p with a pile of paper, and if they decide to sell this currency then it'll make their own currency worth more and the US dollar worth less. This isn't what they want, as they don't want to inflate the price of their own currency to make their products less competitive nor do they want the rest of their US dollars to be worth less.
By buying into bitcoins, they're not making their national currency worth more which means that their exports stay competitive. They will also hold something that is decentralized and a great store of value
In practice, though, things are entirely different
The third world countries you mention don't have dollar reserves at all, the dollars which they might receive from their exports are immediately stolen by the people who make up the government of such a country. Apart from that, Bitcoin is nowhere near being a good store of value, and exporting countries that do have dollar reserves (like China or Russia) are more inclined to buy gold, which you seem to have completely forgotten about
June 12, 2017, 10:09:36 AM
External reserves to a large extent determines the strength of the internal currency of a country especially for an imlrt dependent economy like most of the third world countries and in which case needs a level of stability in their external reserves in other to grow gradually but they may not achieve that if bitcoin that is so volatile might distort their economic growth and even impoverish them the more in the case the volatily is on the negative.
June 12, 2017, 09:38:21 AM
Most of the third world country hold their foreign reserve in dollar. Do you think any of these third world country will accept Bitcoin and equally holds their foreign reserve in bitcoin instead of dollar form? In your own opinion what do you think will happen to such economy both in terms of positive and negative effects?
That's equal (maybe even worse) to Iraq converting it's foreign currency reserves to Euro before the US invaded to restore the order
Best case scenario I can see is a middle to upper class (in terms of GDP) country converting up to 10~20% of their gold stash into Bitcoin in 10 years from now. The prime reason about that would be the beginning of the space mining industry. A relatively "small" space rock would be enough to inflate the precious metal market enough to convince a country to switch some of their stash into Bitcoin
You can't find Bitcoins in space! Well, this is a very interesting way of looking at things. I mean, bitcoin is patterned after gold in that there's only a fixed quantity of the metal. This however didn't took into consideration metals that would be mined from asteroids. Now that I've thought about it, it's probably even possible that eventually, bitcoin would be rarer than gold!
June 11, 2017, 05:47:36 PM
Most of the third world country hold their foreign reserve in dollar. Do you think any of these third world country will accept Bitcoin and equally holds their foreign reserve in bitcoin instead of dollar form? In your own opinion what do you think will happen to such economy both in terms of positive and negative effects?
I wish that countries can hear this man. The problem right now is that third world countries are mainly exporting countries and are not importing - which means that the US basically buys everything they produce and pay in newly printed US dollars. This is a big problem and creates basically a dilemma.
The exporting country endsu p with a pile of paper, and if they decide to sell this currency then it'll make their own currency worth more and the US dollar worth less. This isn't what they want, as they don't want to inflate the price of their own currency to make their products less competitive nor do they want the rest of their US dollars to be worth less.
By buying into bitcoins, they're not making their national currency worth more which means that their exports stay competitive. They will also hold something that is decentralized and a great store of value.
June 11, 2017, 03:51:46 PM
I don't know if crypto is suitable for state reserve currencies. Governments typically prefer currencies they have direct control over.
Where crypto is useful is ensuring the average person can maintain the value of their wealth if hyperinflation occurs, contributing towards less suffering over the long term for everyone, both rich and poor.
Its an integral part of the economic debate which claims a strong middle class is necessary for a good economy which many have said is one thing china lacks and needs.
Where crypto is useful is ensuring the average person can maintain the value of their wealth if hyperinflation occurs, contributing towards less suffering over the long term for everyone, both rich and poor.
Its an integral part of the economic debate which claims a strong middle class is necessary for a good economy which many have said is one thing china lacks and needs.
June 11, 2017, 12:56:07 PM
Maybe someday bitcoin can be a foreign exchange in some developed countries because seen from 2009 to 2017, 8 years is not a long time but bitcoin able to continue to grow quickly without us realize almost the same as the value of gold. Because many countries dare to get out of dollars so do not be ruled out if bitcoin can also beat the dollar in the future.
June 11, 2017, 11:40:08 AM
I believe at least Zimbabve should try investing in Bitcoin.. if I were in their government I'd try swtiching to BTC instead of their mostly worthless currency
Zimbabwe currently has a lot of investors that are seriously investing into bitcoin and others crypto currencies and most of them are now millionaires in Zimbabwe currency. Like I said before African can only reduce the values of dollars on the currencies by buy into crypto currencies. 
June 11, 2017, 08:30:59 AM
This will never happen. Third world countries become dependent on the U.S. dollar due loans at very low interest rates. Who will they lend in bitcoins? Besides, no one will take a loan in an unstable currency. It is very dangerous.
yes that is very right and i think most of the backward countries may have no such idea about bitcoin, i think most of the backward countries are taking loan from USA in Dollar form, which they for them most of time do not capable to return, they are every running their countries on foreign donations and loan. and if the donors will stop their donation for them, i do not think that they will survive for a long time. June 11, 2017, 08:08:06 AM
I doubt if any third world country will be able to take that risk simply because of no other reason than volatility that in the case of bitcoin crashes, then they become poorer in which case they have no alternative which is the most scary part. Another reason is that based on the level of technological development in such country, I wonder how they will be able to adopt bitcoin and also most of this countries relies on foreign aid from the United States and the moment they change then they might be losing from both ends.
It is not just about volatility
Unlike real gold in underground vaults, bitcoins can be easily stolen as it happened in the past with so many well known and popular exchanges (e.g. Bitfinex). Therefore, if a government is incompetent in setting up their monetary policies which lead to severe currency devaluations and abandonment of local currency (like it happened in Zimbabwe), we shouldn't in fact expect too much from them regarding security questions either. I guess it would be a really traumatic experience for the population of some country if its Bitcoin reserves got stolen one day
June 11, 2017, 05:14:35 AM
Most of the third world country hold their foreign reserve in dollar. Do you think any of these third world country will accept Bitcoin and equally holds their foreign reserve in bitcoin instead of dollar form? In your own opinion what do you think will happen to such economy both in terms of positive and negative effects?
At the current status of bitcoin, i think not yet. Unlike the dollar, i btc isn't yet hat established and countries may be favoring gold or oil rather than btc. I can't tell anything about the future but for btc i think countries are not yet thinking about it
June 11, 2017, 03:29:50 AM
I believe at least Zimbabve should try investing in Bitcoin.. if I were in their government I'd try swtiching to BTC instead of their mostly worthless currency
Lol I understand you, the fact is that such a country as Zimbabwe has nothing to lose and therefore it will be possible to take risks and invest in Bitcoin. But it will be very difficult for other countries to do and incredible even if this happens. 
June 11, 2017, 03:26:26 AM
I believe at least Zimbabve should try investing in Bitcoin.. if I were in their government I'd try swtiching to BTC instead of their mostly worthless currency
June 11, 2017, 02:34:22 AM
Most of the third world country hold their foreign reserve in dollar. Do you think any of these third world country will accept Bitcoin and equally holds their foreign reserve in bitcoin instead of dollar form? In your own opinion what do you think will happen to such economy both in terms of positive and negative effects?
Not all countries in the third world are fans of dollars. They have their own financial policy and most hold their reserves in real Gold. But in near future we can expect or at least personally I would love to see all countries holding their wealth in bitcoins - of course all countries have to first officially accept and come to a consensus on it.I do believe for some African countries, bitcoin must suit as a national currency rather than just a foreign reserve. Because bitcoin seemed stable compared to their rapidly falling local currencies.
June 11, 2017, 01:35:24 AM
I doubt if any third world country will be able to take that risk simply because of no other reason than volatility that in the case of bitcoin crashes, then they become poorer in which case they have no alternative which is the most scary part. Another reason is that based on the level of technological development in such country, I wonder how they will be able to adopt bitcoin and also most of this countries relies on foreign aid from the United States and the moment they change then they might be losing from both ends.
June 11, 2017, 01:22:42 AM
I don't know how far Governments in developing countries will go in order to stash Bitcoin but individuals and companies will do that by default as many don't have access to traditional banking services but mobile technology is getting everywhere and is more affordable. I think many young people with access to mobile phones will be hoarding bitcoin and looking for ways to earn it for free as they have no access to the traditional work market and banking.
June 11, 2017, 01:16:41 AM
Most of the third world country hold their foreign reserve in dollar. Do you think any of these third world country will accept Bitcoin and equally holds their foreign reserve in bitcoin instead of dollar form? In your own opinion what do you think will happen to such economy both in terms of positive and negative effects?
Hope you know that the reserve currencies are held in more than one currency and not in dollar alone.No country will be playing with their foreign reserves and they wont take any unnecessary risks as it could hurt their growth and it could lead to a huge debt and the main reason they wont accept bitcoin is simply because of its volatility and the price fluctuations is really huge to be accepted as a reserve currency. Jump to: