Quote:
Originally Posted by Wayne 962
The El Salvador thing seems like an incredibly silly thing to me - almost like a PR stunt to get more attention? The reality is that the transaction costs for Bitcoin are so high - especially compared with transactions in a 3rd world country like El Salvador - that this doesn't make *any* practical sense? In order for something to work with a small 3rd world country, it would have to be robust, stable (which it's not), and also very, very cheap to process transactions / micropayments. Bitcoin is the opposite of this. Plus who in a 3rd world country is going to know / learn about Bitcoin and actually use it to buy groceries?
Basically, all of the articles I've read on this topic have pretty much said the same thing...
-Wayne |
I think you are looking at this from an American point of view and not a third world country point of view. Seriously, why wouldn't a poor country take the chance of being on the forefront of this? I mean really... its still completely asymmetric risk for them to embrace it and make it legal tender. What is this costing them vs what are the possible outcomes? A lot of people cannot think from this point of view until looking in hindsight. What are the risks and costs, and what are the possible outcomes? Where are you now, where do you want to be?
You have not digested anything from the pro side of the arguments if you don't know "who in a 3rd world country is going to know / learn about Bitcoin and actually use it to buy groceries." I have shared already how Venezuelans are transacting millions of USD of BTC peer to peer WEEKLY because their currency is in hyperinflation. They have anywhere from 20-250% inflation MONTHLY. Their government tries to set prices, as if they have any clue what they are doing. BTC is their way around the poor govt control. It may not seem like it but BTC volatility is decreasing steadily as it rises in price, it will find its equilibrium. I agree with you, for developed countries it probably won't be an every day tx currency, unless fees can be dropped to like 3% like CCs. There will be something built on the back of BTC for that. But its most likely use will be to replace the USD as the trusted world reserve currency.