El Salvador, Dollarisation, and Bitcoin — What to Expect From Here
- Thread starter hawkeye1
- Start date
Millennial Engineer
Well-Known Member
I suspect other smaller countries will follow.
How the heck can any self-respecting country ( apart from banana republics ) make legal tender of bitcoin or any other make-believe
cryptocurrency when the value of it can fluctuate 20% or more in a single day.
If their countries are not screwed up enough already they soon will be with those sort of halfwit decisions by their leaders.
If anyone wants to know what your cryptocurrencies' true values are wait until interest rates return back to normal rates then you will find out the hard way.
cryptocurrency when the value of it can fluctuate 20% or more in a single day.
If their countries are not screwed up enough already they soon will be with those sort of halfwit decisions by their leaders.
If anyone wants to know what your cryptocurrencies' true values are wait until interest rates return back to normal rates then you will find out the hard way.
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Probably. They do it with gold and it's a just as pointless exercise for many of those countries.
But I can't see how waving a magic BTC Wand With Tax Incentives around can solve El Salvador's problems better than moving back to being a currency issuing sovereign nation offering the same tax advantages to locals and foreign investors by returning to a monopoly fiat system (or even a system with competing fiat currencies).
BTC doesn't stop murder, corruption, rape and theft.
No. But it gives them an opportunity to grow their economy using the new technology. As the economy grows, all these should decrease. It's risky to get in first, but with countries like El Salvador that aren't doing that well anyway, the risk is worth. I think it will pay off for them.
Forget MMT. Bitcoin is the revolution. And it's happening.
MMT is just more of the same from the same gang as before.
How will this new technology give their economy the advantage that can't be better achieved by returning to a sovereign, currency issuing nation? What properties does BTC possess that will turn this nation of criminal gangs into a prosperous state?
When a country pegs their currency to anything - whether it's gold, the USD, or BTC, or when it abandons its own currency in favour of that of another nation, the leaders lose autonomy and the capacity to make independent policy decisions that are in the best interests of their people.
Remember, we're not talking about the abolition of the State in El Salvador, there'll still be a central government. And because there'll still be a central government it'll need the tools that will best assist a central authority to implement policy. El Salvador will need a currency that it can issue independently of other markets, that it can use to pay its obligations, and that it can create tax obligations in order to force its citizens to use.
Now if it wants to legalise BTC or LTC or Monero as currencies then that's fine, but alongside it still needs its own government issued fiat if the State wants to lift the nation out of crime induced poverty.
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BTC will do well until all their internet is shut off. No worries just third part risk.
BTC as national currency for countries whose currency is more volitile than BTC historically could handle the change or even welcome it.
For any other country it is tough or impossible transition unless BTC price fluctuation for normal week is less than 1% and 10 to 15% a year.
Say for example if Australia moved to BTC... and we were paid in BTC, it would be like living in a banana republic.... Our earning and saving today will be 50% lower than a month a go
For any other country it is tough or impossible transition unless BTC price fluctuation for normal week is less than 1% and 10 to 15% a year.
Say for example if Australia moved to BTC... and we were paid in BTC, it would be like living in a banana republic.... Our earning and saving today will be 50% lower than a month a go
Even more devastating would be the effect upon our standard of living as government provided services would be slashed because of the need to adopt austerity measures. We'd be the Greece of the South Pacific.
We would be wishing we were living in Greece of the South Pacific when in fact our standard of living will be sliding towards a mid ranking African nation and the public will be using NZ dollars for its stability.
If this even appears to get some traction and positive benefits for the peoples of El Salvador, all I can say is "....haven't seen a good CIA organised regime change in Latin America for a few years now"
US Regime change intervention only occurs when the country in question is stable. US goal of intervention is to plunge the country/region into tumoil not to bring stability.
Stability in poor countries is not good for the US economy
Such a place is called Melbourne
Correct. The thrust of my comment was that if BTC bought some benefit to ES, then the US wouldn't stand for it and would effect regime change to keep ES the tin pot latin American country is currently is.
Millennial Engineer
Well-Known Member
It's a bit of a stunt, but I'm happy to see how it plays out. I hope they don't screw it up and others consider following suit.
The problem with making it legal tender is that everyone now needs to accept it and I'm not sure the capability to accept Bitcoin payment is going to be there for most El Salvadorian businesses.
Still, the potential economic benefits are real. There are many who might consider investing or shifting operations to El Salvador if it means they can have their BTC as legal tender instead of an asset subjected to capital gains on every transaction (like...ummm....us?)
The problem with making it legal tender is that everyone now needs to accept it and I'm not sure the capability to accept Bitcoin payment is going to be there for most El Salvadorian businesses.
Still, the potential economic benefits are real. There are many who might consider investing or shifting operations to El Salvador if it means they can have their BTC as legal tender instead of an asset subjected to capital gains on every transaction (like...ummm....us?)