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RE: Venezuela - Mining Bitcoin Illegally in order to survive...

in #bitcoin7 years ago

Thank you for the awesome post, I really hope that Bitcoin might help some people.

But is not that easy: Central banks do not only cause harm but can also stabilize an economy by changing the interest rate and the inflation. Sometimes, a slightly weaker currency is actually better for the economy as a whole.

Guatemala for example did way better when they separated their local currency, the quetzal from being fixed to the value of the strong dollar in 1987. The value plummeted, but it helped the economy and the people, because it was cheaper for other countries to buy stuff in Guatemala and bring money in.

I still strongly believe in Bitcoin as a world currency, but it will never replace traditional fiat money which is needed to balance the different economies against each other.

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You're really mentioning some good points, which I can only agree to. IMO the cryptos will be able to change our monetary system within the next years, but they won't be able to replace it. Not yet...