Not sure why the world needs bitcoin? Check this out:

in bitcoin •  7 years ago 

There is some debate among economists how much the world really needs something like bitcoin.

That might sound like a valid debate for some here in the US, mostly because we have used the same fiat system for the last 230 years.

With the current system coming about more recently with the FED being created just under 100 years ago.

Then going off the gold standard roughly 50 years ago to get us to where we are today.

All that being said, these Economists having this debate most certainly must come from the US...

Why do I say that you may ask?

Take a look at this:

https_%2F%2Fblogs-images.forbes.com%2Fstevehanke%2Ffiles%2F2018%2F05%2FAnnual-05.31.18-1200x763.jpg

(Source: https://www.forbes.com/sites/stevehanke/2018/05/31/venezuelas-inflation-breaches-25000/#43b02796d57e)

That's right, Venezuela's inflation rate has topped 27,000% currently!

27,000%!

On average, the cost of goods has been doubling roughly every 29 days over there.

Think a decentralized global currency might make sense for them?!

The next time you hear someone talk about the lack of use cases for something like bitcoin, make sure you consider the source.

If they come from the US, or some other developed country with a very stable currency, they likely might not see the whole picture.

There are currently dozens of countries that do not fit that stable currency definition, with the euro zone and the euro possibly joining that group.

A trustless currency is extremely valuable to them.

One that cannot be controlled and manipulated by governments.

Yes there is tons of volatility in bitcoin currently, and that may not go away any time soon. However, owning something not manipulated and printed into oblivion still beats the alternative for many parts of the world.

Stay informed my friends.

Image Source:

https://seekingalpha.com/article/4132006-bitcoin-big-short-coming

Follow me: @jrcornel

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Hope some day the BTC chart looks just like the Venezuela inflation chart 🤓👍🤓

That would be something wouldn't it?!

  ·  7 years ago (edited)

Compared to 27000% inflation the volatility of Bitcoin is nothing. Also, it's much easier for Bitcoin to gain value than it is for the Bolivar. Again, Bitcoin is only volatile when it get's pumped to the moon. Right now is a super safe time to put your money in. If you look at Bitcoin dominance during bull runs (goes down) and during bear runs (goes up) it's pretty obvious that Bitcoin is becoming less and less volatile as mainstream adoption grows.

It certainly does appear to that be that way as of right now.

As more and more people get their hands on Bitcoin, the Whales lose the ability to manipulate the market as much. Considering that only 21 million will be made, the future does look bright.

Nice try, but you're delusional if you believe that TPTB will give up their stranglehold on world economies without a fight. The recent slide in BTC price is proof that it's "not ready for prime-time". Imagine what would happen to BTC's value of the US Govt and the Fed really set it's sites on destroying it.

Lol I didn't think I said it would be easy or that it was coming or anything like that. I just said hyper inflation is a reason why many developing countries need something like bitcoin.

Here in Africa most countries are still developing economically, that results to unstable currencies. Guess what? the inflationary rate is alarming due to central governments printing unnecessary fiat especially during political elections to fund their campaigns.

I think the use of bitcoin and other crypto will reduce on the inflation in developing countries.

Yep I agree, it seems logical to me.

I completely agree with the point you raised on the post. Recently, I did a paper on Zimbabwe and the situacion was absurd, just like Venezuela, but with percentages of inflation of 231150888% (No, it was not a mistake, it actually had that many numbers)... Has I said, ridiculous, immediately they shut down the currency and tried to survive with US dollars.

So, I think in the past 10 years we have a lot of examples of how BTC could be so helpful.

Yep I agree, and this problem won't be solved with new government issued fiat.

You are looking just one part of the picture. In countries like United States, they can print all the money they want, then they need countries like Argentina to grab all the USD they have printed in order to have less inflation that they would have if all the printed dollars stays in the USA. Don't you think so? Besides, what currency the world uses to buy Brent? Let me guess, US Dollars? Or Pesos Argentinos? Or Bolivares?

But yes, cryptos are making history. And they will solve lots of problems but at the same time they will create new ones. For example, what tools will the states have to fix economic issues?

Yes, this is just one aspect, but a very real aspect as to why it is needed.

Tools to fix economic issues will exclude currency manipulation, which is not a real fix. So the states will have to take appropriate actions such as: reduce regulations to stimulate business formation, reform tax policies to stimulate business formation and growth, act to improve outcomes from the public education systems to improve the overall competitiveness of the state economy, establish and demonstrate ability to maintain stable "rule of law" operation to attract external fund flows into the state economy as a good place to store value, etc. Basically the politicians will have to stop playing financial gimmicks, will have to adopt solid conservative values and deliver honest results to their electorate. As an example, consider what Switzerland has done over last 100 years. We will need more governments and politicians who are willing to compete with Switzerland. Imagine how wonderful that world could be. Socialism would die on the vine.

THANKYOUU

Thanks for you

Estoy de acuerdo que realmente estamos en un periodo inflacionario, pero es importante analizar las causas de la misma, soy venezolano, me duele mi pais, los problemas que estamos pasando, son netamente por cuestiones políticas y ansias de poder, porque el gobierno actual no les permite las injerencias en nuestros asuntos, quien los doto de tal supremacía o les otorgo tales superpoderes, el derecho de juzga y hacer lo que les de la gana con todos los pueblos del mundo, al extremo de ahorcar públicamente al presidente de Iraq, matar al presidente de Libia, invadir paises, instalar bases en todos los pueblos del mundo, que se creen? se consideran los dueños del mundo. Solo una reflexión o pregunta, las medidas dictadas por la UE y los EE.UU, el grupo de lima, se justifican, todas las informaciones que se publican a diario, en los medios de internacionales sobre Venezuela se justifican o estan tomadas con otros fines? estamos seguros, que la causa fundamental o el origen de todos nuestros problemas economicos, se deriva del simple hecho de haber limitado el poder de acción e injerencias, ademas del frenado brusco que se le dio a las empresas transnacionales quienes por mas de 100 años sustrajeron las riquezas de nuestro país, no perdonan la llegada de un gobierno que realmente les hiciera frente y les dijera la verdad, estoy seguro que si el gobierno actual se doblegara a los intereses de estos, que se creen dueños del mundo, todos los problemas desaparecerían como por arte de magia, claro estoy, que la culpa de todos nuestros problemas, es no haber invertido la riquezas provenientes del petroleo, como decía Arturo Uslar Pietri, habernos convertido en una pais monoproductor, dependientes exclusivos de la renta petrolera, haber descuidado el aparato productivo nacional, pero aun hay tiempo, en los tiempos de crisis, en cuando nacen o surgen los grandes inventos y el ingenio, somo un pais rico en todo, tierras clima, petroleo, gas, oro, bauxita, coltan, etc. somos un pueblo de una población relativamente joven y estoy seguro que pronto saldremos adelante, el gobierno debe tomar fuertes decisiones contra la corrupción, mal arraigado en todos los niveles jerarquicos y tratar en lo posible de incentivar y aumentar la producción de bienes y servicio.


fuente:([http://cdn.steemitimages.com/DQmYGnpYRrhdM7kqGkvfUFGbn4KgFCbQwfSNvBAUnEXcrNy])

El gran problema de Venezuela es no haber tenido un plan productivo como los que tenia Peron en Argentina en los años 50s. A la par de todos los planes de alfabetización, salud, etc, que hubo con Chavez.
Maduro tiene la oportunidad única en la historia de volver a poner en ruta el barco, ¿estará a la altura de las circunstancias? ¿o será doblegado por la oligarquia local (cipayos) junto con los poderes economicos y politicos del extranjero?

This is absolutely important for most participants in these markets to consider. We should also be aware of what creates inflation, which is money supply through the continued issuance and refinancing of debt. Here are two charts to show concerning trends closer to home:
CFAB47F8-E817-4C17-BF46-EFD5290165B9.png

Key Inflation Indicator:
A92EB2B3-4803-4A8B-A5FB-C65E61FBDCB5.png

It looks like it is getting ready for a moon shot to me... not good.

It's for you sir..

QmNZtMQcGfADCdfgr6AAwPF9QnnLz4L3DKCeF5uWUPfzgD.jpg

From past and in recent days also proved that the fiat system can face the hyperinflation and literally people of some countries can lose the purchasing power and inturn these type of situations can also lead to the many conflicts in society so it's really important that we need Decentralised System and Crypto because it can lead towards the financial freedom and financial control. Thanks for sharing this post with us and wishing you an great day. Stay blessed. 🙂

Yes agreed. Well said.

Thanks for appreciating my thoughts. Stay blessed. 🙂

its definately way much better ...we should accept the truth that the fed and the central banks really dont like crypto coz its decentralized like bitcoin meaning no office to storm in and corce ...it the top guys who benefit from the old plot that are nervous

thank you for sharing info about my friend bitcoin. and hopefully you are always in good health. and I really need support from you my friend please visit my blog once a friend yes @jrcornel

Decentralization is the power of those one who really suffer and hunted by currency monsters in this alarming poor factors of those who cant think about the rich terms and condition which they have draw for needed people the time now has come to destroy the rich mind thoughts and style and join hand together to promote blockchain for decentralize the gems

It will really be a tough fight. Governments want something which they can control and they will not give up fiat that easily.

es triste, pero una solució a la crisis venezolana es desarrollr un escenario de una nueva moneda respaldada y con aeptación para lograr el financiamiento; sin embargo, muchos paises "desarrollados" tambien viene sufriendo de procesos inflacionarios. Pero la realidad, es que para paises con problemas de hiperinflación, las cryto avecinan una solución "logic2 o "magica", uno no sabe

Great write up.

that is a sick picture

Extraordinary explanation and graphics thank you for sharing congratulations friend

Thanks for nice post and sharing with us and wishing you an great day. Stay blessed

NIce post . Thanks for share this . Upvote and resteemed it . Thanks