Bitcoin Value as a national currency?
What do you think the bitcoin value would be? Is it possible for Bitcoin to get accepted as a national currency for any real country? It would be definitely amazing, but I’m sad that governments are scared of Bitcoin, because they can’t track it like the banks they own. I heard about “mini-country” ( country in a country ) called Liberland with a cryptocurrency as their main payment method.
Bitcoin value according to coin base, Hong Kong is the fastest non-American adopter of Bitcoin. Hong Kong has what is known as a linked currency. The value of Hong Kong dollars is linked to the best currency for international trade. It was pounds, but it is dollars now. It might be bitcoins tomorrow.
Some countries have a dual currency system. For example, in panama, people accept dollars or Panamanian balboas. Balboas are linked to dollars, too.
In other words, many countries do not have the ability to inflate their money supply at will.
It makes not much sense to “nationalize” Bitcoin, because it can’t be controlled. There’s no benefit for a state to declare Bitcoin as its official currency – it would make more sense to allow free competition of any form of private money and abandoning the concept of national currency altogether. If a state isn’t hostile towards Bitcoin, it may just allow its use without excessive regulations.
What makes more sense for a state would be to buy Bitcoin as reserve / investment. The risk-reward-ratio is extremely good, because if the state would subsequently declare that it has bought Bitcoin, the Bitcoin value would skyrocket from this announcement alone.
The people having debt speeds up the economy, inflation leads to people with less value in the money that they do have, and encourages them to spend it (or work more generating more tax for the state) rather than save it – again, speeding up the economy.
All of these things are more benefit to the state rather than the people. Which wouldn’t be so bad if we could actually trust them and be sure they did sensible things with our money and national currency.
Control the money, control the people.
Bitcoin is backwards to the above, it’s like trying to fit a square peg in a round hole. They don’t go together. Bitcoin is a good thing for individuals who wish to retain value in their currency/asset, but terrible news for bank monopolies/governments.
There are only two ways to attempt to control Bitcoin.
1. Alter the public perception of Bitcoin to something very negative and keep it that way to try to prevent mass-adoption for as long as possible, at the very least, marginalize it. The biased media is doing this pretty much everyday now. There is a poster on this site who also has some shill accounts who always posts negative titled inflammatory threads. All those thread titles show up on Google searches when now/future people search for anything ‘Bitcoin’.
2. Control the end points/buy points. A leaked paper already alluded to this development. It pointed to the fact there would, in effect, be two kinds of Bitcoin, transactions that had already been connected to an ID and can be tracked, and the underside of Bitcoin outside of the system that could never be controlled.
The above two points are already being implemented on a daily basis.
3. Some form of attack, spam transactions/51% attack. A large group of miners deciding to not accept transactions to the degree, and over a period of time, that they seriously make everyone question the Bitcoin protocol’s practicality.