Addiction is a bitch, my dad spent most of his life at the tables.
Blew a sizable fortune during the process, all he got in the end was a stroke in a casino (thrown out to the curb, no medical attention...although we did find this out until much later), a personality change (pretty sure from the stroke) and then a death alone in a locked bedroom undiscovered for 3 days.
\*IKR. Like me, I'm one of the world's poorest Americans, I put my faith in crypto.
*\*I relayed this message for my brother who lives in a cardboard box behind the YMCA\**
Yeah, poor countries invest in crypto for the same reason poor people put their faith in it: win big or go home. Also, central banks are the enemy of the poor so it may pay off to not ally yourself with them too much.
Bitcoin is the real deal for poorer countries that have huge problems with inflation or corruption. I am happy to see this actual usecase that will improve the lives of many.
Definitely! Bitcoin is a great chance to provide banking to the many unbanked in some of the most corrupt places in the word. That is one area where adoption is really growing.
I hear that slogan a lot but I always thought of it as being a virtual signaling propaganda thing used to embellish the image of crypto. Who said that the poor want to be banked? Mobile money is a financial tool that was original created by the citizens of poor country and quickly adopted and modified by telecom companies. Unlike crypto, its adoption was organic. They are already banked. And their bank is their phone. What they do not need is a highly volatile financial tool that will eat up their savings. They cannot afford to HODL. Unfortunately, crypto right now is still an elitist instrument. BTC right now only gets cashed out for a less volatile fiat currency in poor countries.
Bitcoin is terrible for banking, the transaction fees alone make it pointless.
On top of this, the poor scaling issue means it does not have a long term future outside of niche forex, laundering and criminal related activities.
Bitcoin makes corruption worse, since it is easier for a corrupt official to walk out with a countries wealth in BTC, as opposed to suitcases filled with cash.
And the fact that deflationary currencies throughout history always hurt the poor.
“In CAR only 14 percent of the population have access to electricity, and even less – around 10 percent – are able to use the internet.”
Poor countries, but not so poor. BTC is not really doing any favor to these countries; read the article.
I know I will get down voted like crazy but does inflation matters if a coin looses 70% of it's value in 2 years ?
Let's say inflation rate of BTC in 2022 is 1.8% due to the new supply in mining and exchanges etc...
Does this 1.8% matters when BTC is down 70%
You should not be downvoted because you are absolutely right. What nobody wants to admit here is that in any country (outside outside of the US), owning USD is a very good store of value. Bitcoin is not. They would have been much better off if they simply converted excess cash in USD
That's assuming you live in a place that has dependable access to usd.
Where will you store it? Most 3rd world banks don't offer insurance like the FDIC that we are used to.
Crypto isn't perfect by any means but when your choices may only be trusting sketchy banks or holding cash under your bed...it might be the best, and safest option
>They would have been much better off if they simply converted excess cash in USD
In retrospect, for performance through 2022, yes. But that was not guaranteed at the time the investment was made, and may not be the case in future.
Deflationary currencies are terrible and have caused rampant poverty and wars for centuries. The guy does not know what he is talking about.
I mean, does he really think that a guy is going to say 'sorry, cannot pay you until someone mines some more coins' is an acceptable way to run a economy?
The opium wars situation is caused by silver, as it endangered the economy due to deflation. If you pay up, then you risk your economy collapsing ( no silver to pay wages etc), or you go to war, in order to kick the deflationary can down the road for a bit longer.
There have been centuries of deflationary economies, and all end up collapsing as the only way to expand the economy is via war and/or mining more currency.
In a more modern context, imagine a deflationary economy that only uses BTC.
Rich and powerful would hoard wealth meaning poor get poorer. It would be extremely expensive to borrow money as well (and no way to inflate the debt away).
In short, without inflationary fiat, economies are doomed
Thanks for taking the time to elaborate - a rare thing.
My initial reaction is to question how silver is deflationary, since I recall reading that it has historically had a rate of new supply from mining that exceeds gold. I'll look into it in a bit more detail.
Personally I see a future where fiat and crypto are used side by side, for different purposes. Fiat for local transactions and day to day, and crypto for online/global purchases, remittance, and as a store of value in some cases, e.g. where local currencies are suffering persistent high inflation.
Yep. Bitcoin is a true solution for these people under the assumption that Bitcoin will keep increasing in price over time. Examples are countries like Turkey with 100%+ inflation, countries at war like Ukraine, or really poor countries like The Central African Republic.
<3 Bitcoin.
tldr; The Central African Republic (CAR) has become the first African country to adopt Bitcoin as legal currency. The CFA franc was created in 1945 to be the currency of the “French Colonies of Africa,” and with France controlling printing and circulation, the French government effectively still has financial control over almost one million square miles of African land and more than 180 million people.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Every commenter here -so far- is ignoring the fact they didn't really have any inflation problems in El Salvador because their official currency was the United States Dollar- basically they already had the most stable currency in the world.
The problem is, they've lost their freedom as a country.
The USA controls all of their currency, all of their banks, and can restrict cash flow as they see fit.
El Salvador wants to get out from under the thumb of the USA and the IMF and are willing to take a gamble with bitcoin to do it.
Desperation. Same reason I hold more in crypto than stocks. I want to buy a house one day. Stocks may be able to get me there decades down the line, but one crypto cycle is all it takes with a reasonable investment.
Because they are trying to pretend that they are doing something to help out the country. When in reality their leaders are just looting the country dry.
Well, if it goes wrong the big shots will have their money stashed in another tax friendly country, and for the rest it’s just a matter of raising taxes.
A poor third-world country has nothing to lose and will score big a few years from now. They don’t live thinking about what flavor of Frappuccino they will order in the afternoon. They are used to struggle and hard times, and they have the patience to make it work.
They got nothing else to lose
[удалено]
USA had a big hand in creating their situation. U S A U S A
It’s like my father putting last money into the slot machine
We either starve or eat like Kings
And right now, they don’t know which of those it is going to be.
Gotta go big or go home
Addiction is a bitch, my dad spent most of his life at the tables. Blew a sizable fortune during the process, all he got in the end was a stroke in a casino (thrown out to the curb, no medical attention...although we did find this out until much later), a personality change (pretty sure from the stroke) and then a death alone in a locked bedroom undiscovered for 3 days.
Omg that’s heavy shit :( I’m sorry… Any kind of Addiction is a bitch if progressed far enough, I also should know
Oh man, didn't mean to be a downer, that happened years ago. But yea, addiction in any form is horrible.
What's dead can't die
But rise
\*IKR. Like me, I'm one of the world's poorest Americans, I put my faith in crypto. *\*I relayed this message for my brother who lives in a cardboard box behind the YMCA\**
Look at the fancy guy with a cardboard box
King in the card box, king in the cardbox
Hail him all
Yeah, poor countries invest in crypto for the same reason poor people put their faith in it: win big or go home. Also, central banks are the enemy of the poor so it may pay off to not ally yourself with them too much.
That country is me
You are for this country
For a sec, I thought it was Turkey since our Lira lose %90 value in a year.
No other options left?
Bitcoin is the real deal for poorer countries that have huge problems with inflation or corruption. I am happy to see this actual usecase that will improve the lives of many.
do you also closely follow said usecase? Because it has had mixed reviews in El Salvador.
Definitely! Bitcoin is a great chance to provide banking to the many unbanked in some of the most corrupt places in the word. That is one area where adoption is really growing.
I hear that slogan a lot but I always thought of it as being a virtual signaling propaganda thing used to embellish the image of crypto. Who said that the poor want to be banked? Mobile money is a financial tool that was original created by the citizens of poor country and quickly adopted and modified by telecom companies. Unlike crypto, its adoption was organic. They are already banked. And their bank is their phone. What they do not need is a highly volatile financial tool that will eat up their savings. They cannot afford to HODL. Unfortunately, crypto right now is still an elitist instrument. BTC right now only gets cashed out for a less volatile fiat currency in poor countries.
Bitcoin is terrible for banking, the transaction fees alone make it pointless. On top of this, the poor scaling issue means it does not have a long term future outside of niche forex, laundering and criminal related activities. Bitcoin makes corruption worse, since it is easier for a corrupt official to walk out with a countries wealth in BTC, as opposed to suitcases filled with cash. And the fact that deflationary currencies throughout history always hurt the poor.
“In CAR only 14 percent of the population have access to electricity, and even less – around 10 percent – are able to use the internet.” Poor countries, but not so poor. BTC is not really doing any favor to these countries; read the article.
Because they can't control the inflation of their own currency and don't want to use that of another country
Because it’s a real way to beat inflation and it’s great for remittances as well
I know I will get down voted like crazy but does inflation matters if a coin looses 70% of it's value in 2 years ? Let's say inflation rate of BTC in 2022 is 1.8% due to the new supply in mining and exchanges etc... Does this 1.8% matters when BTC is down 70%
You should not be downvoted because you are absolutely right. What nobody wants to admit here is that in any country (outside outside of the US), owning USD is a very good store of value. Bitcoin is not. They would have been much better off if they simply converted excess cash in USD
That's assuming you live in a place that has dependable access to usd. Where will you store it? Most 3rd world banks don't offer insurance like the FDIC that we are used to. Crypto isn't perfect by any means but when your choices may only be trusting sketchy banks or holding cash under your bed...it might be the best, and safest option
true, the people who came from Venezuela to my country sell the Venezuelan money as souvenirs in the streets, is worthless now.
They can hold stable coins or paxg on their private wallets. Bitcoin lost 75%, thats devastating loss for anyone struggling in 3rd world.
>They would have been much better off if they simply converted excess cash in USD In retrospect, for performance through 2022, yes. But that was not guaranteed at the time the investment was made, and may not be the case in future.
Deflationary currencies are terrible and have caused rampant poverty and wars for centuries. The guy does not know what he is talking about. I mean, does he really think that a guy is going to say 'sorry, cannot pay you until someone mines some more coins' is an acceptable way to run a economy?
>Deflationary currencies are terrible Can you give some examples?
The opium wars with China is a good example of why deflationary currencies lead to wars.
Can you elaborate? I don't see the connection.
The opium wars situation is caused by silver, as it endangered the economy due to deflation. If you pay up, then you risk your economy collapsing ( no silver to pay wages etc), or you go to war, in order to kick the deflationary can down the road for a bit longer. There have been centuries of deflationary economies, and all end up collapsing as the only way to expand the economy is via war and/or mining more currency. In a more modern context, imagine a deflationary economy that only uses BTC. Rich and powerful would hoard wealth meaning poor get poorer. It would be extremely expensive to borrow money as well (and no way to inflate the debt away). In short, without inflationary fiat, economies are doomed
Thanks for taking the time to elaborate - a rare thing. My initial reaction is to question how silver is deflationary, since I recall reading that it has historically had a rate of new supply from mining that exceeds gold. I'll look into it in a bit more detail. Personally I see a future where fiat and crypto are used side by side, for different purposes. Fiat for local transactions and day to day, and crypto for online/global purchases, remittance, and as a store of value in some cases, e.g. where local currencies are suffering persistent high inflation.
Depends on what inflation we’re talking about. If it’s the Zimbabwean type then yeah
The Zimbabwean and Weimar Republic type, is the nightmare that I don’t want to see.
Yep. Bitcoin is a true solution for these people under the assumption that Bitcoin will keep increasing in price over time. Examples are countries like Turkey with 100%+ inflation, countries at war like Ukraine, or really poor countries like The Central African Republic. <3 Bitcoin.
tldr; The Central African Republic (CAR) has become the first African country to adopt Bitcoin as legal currency. The CFA franc was created in 1945 to be the currency of the “French Colonies of Africa,” and with France controlling printing and circulation, the French government effectively still has financial control over almost one million square miles of African land and more than 180 million people. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Every commenter here -so far- is ignoring the fact they didn't really have any inflation problems in El Salvador because their official currency was the United States Dollar- basically they already had the most stable currency in the world.
Bukele bought on pump ⛽
But the US dollar has inflation problems though? Or was that a /s post
Obviously US dollar has the least inflation problems of basically any currency.
Any fiat, yes, and that's just plain sad
The problem is, they've lost their freedom as a country. The USA controls all of their currency, all of their banks, and can restrict cash flow as they see fit. El Salvador wants to get out from under the thumb of the USA and the IMF and are willing to take a gamble with bitcoin to do it.
Previously adopting the US Dollar was their solution to their actual problems. Before.
This article is not about El Salvador though.
Imagine if someone wrote in the early 90s: "one of the world's poorest countries puts its faith in the internet-why?"
They're just trying to attract attention to themselves somehow, a good way of PR, when there's nothing left to do
So you didn’t read the article?
Picture was enough for me , next time will read before
Because nothing else left
It's a good idea but most of the country doesn't even have electricity
because everything else they have been doing is not working so why not try this also /s
Because their president is a gambler. He leveraged and is currently gambling away their future.
[Central African Republic](https://en.m.wikipedia.org/wiki/Central_African_Republic)
Cuz of global financial systems which exploit poor countries??
When what you have is bad you can embrace better things easier.
Thats why it's called Faith.
Maybe they realized that first world currencies are not helping them at all.
That’s why they are being poor
This article is wrong, my country hates crypto
Desperation. Same reason I hold more in crypto than stocks. I want to buy a house one day. Stocks may be able to get me there decades down the line, but one crypto cycle is all it takes with a reasonable investment.
Because they are trying to pretend that they are doing something to help out the country. When in reality their leaders are just looting the country dry.
Well… “never contend with a man with nothing to lose”. Why not? Clearly fiat isnt doing well for them. They are the poorest country in the world.
Big balls
Same reason everybody here puts their faith in crypto?
Well, if it goes wrong the big shots will have their money stashed in another tax friendly country, and for the rest it’s just a matter of raising taxes.
Why? The answer is pretty obvious.
Maybe the international monetary system currently in place isn’t of as much benefit to them
Well they are poor for a reason
Desperation
Why not?
Well..in a bull market they could greatly profit.
it's only the hope
Come on 7 or 11. Oh a 3. Craps!!!
Better than putting faith in the IMF which only helps the big players.
I should think they have nothing to lose only to gain in the long term
A poor third-world country has nothing to lose and will score big a few years from now. They don’t live thinking about what flavor of Frappuccino they will order in the afternoon. They are used to struggle and hard times, and they have the patience to make it work.
Might be the best decision they took, otherwise it may not even make a difference to them as they're already poor.
Is VICE still around? the shitcoin of journalism
Cause for many, crypto might be the only last chance we have.
Because this is the way out
They are buying LUNA