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Offline matador123

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Let's Talk Argentina
« on: October 28, 2014, 08:07:19 PM »

Several people on this forum have commented on the incredible possibilities for bitUSD in non-US markets. Argentina has been talked about a lot because of the unique economic situation in that country, which I'll talk about a bit here. I know that there are several other countries where conditions are similar. I'm starting this thread because I know more about Argentina than any other country, and I think it will be useful to have a specific discussion of this on its own thread.

MeTHoDx, Empirical1.1, donkeypong, and several others have mentioned how bitUSD could really thrive in any country where demand for USD is high, but supply is low. This is exactly the situation in Argentina. 

In 2001, Argentina went through the worst economic crisis in its history. The peso crashed, as did the entire economy. Ever since then, the people of Argentina have turned to USD as a safe store of value for their wealth. Even though the country has made some slow progress in terms of economic recovery, the peso continues to fluctuate in value too much to be safe for saving. In addition, people are still disillusioned by what happened in 2001-- bank accounts were frozen and people lots tons of money. Argentines realize that this could very well happen again, especially given their recent default and the failure of the country to make true economic progress in the years since the crash. To add insult to injury, the Argentine government has imposed restrictions of the amount of USD that an individual can buy (something like 20% of personal income, when I was there). As we all know, prohibition rarely works, so the result has been the creation of a HUGE black market in Argentina for the buying and selling of USD.

Here's how it works. The government has created a somewhat arbitrary exchange rate for USD-Argentine pesos-- something around 8.5 pesos per dollar. If you're converting pesos to dollars this works in your favor, but you can only convert a certain amount. On the other hand, you have the black market (also called Blue Dolar, or Dolar Paralelo). This rate currently sits around 14.5 pesos per dollar. It is impossible to state the influence that this exchange rate has on the country. In general, Argentine people think A LOT in terms of dollars. The black market exchange rate is published in the newspapers every morning. You can walk down certain streets and hear tons of people shouting, offering black market exchanges. Policemen stand by and do nothing. Yes, it is officially illegal, but EVERYONE does it.

This is where bitUSD comes in. If you google "Bitcoin Argentina," you will see that there is a lot of buzz about the possibilities for the technology there. People in Argentina are distrustful and disillusioned with their government, with good reason. The government lies about the rate of inflation, and has done little to alleviate the economic plight of its citizens. Even if the government were to propose a solution to the problem, people would not trust it. Because of that, the buzz around cryptocurrencies is sizeable. The problem with bitcoin is that it does not currently offer a solution. Most people in Argentina are looking for a safe store of value for their wealth. They don't save in pesos because they are too volatile. Why would they save in bitcoin, which is too volatile as well? bitUSD offers the perfect solution. It is a SAFE store of value, directly pegged to a currency they KNOW and TRUST. And to make things even better, it offers an incredible yield. It allows them all of the safety of saving in USD, but they get an additional yield, plus the increased security of not having to literally put cash into a mattress to save.

While the majority of Argentines are looking to safely save money, I think that bitUSD, with a little time, could become the preferred method of payment, as well. Yes, things in Argentina are priced in pesos, but as I mentioned before, people there THINK in dollars. It would not be a hard transition for them. What we need to discuss are the best ways of forming partnerships with companies currently working in that sphere in Argentina. Bitpagos is the huge one- they're currently working with over 8,000 merchants to accept bitcoin as payment in Argentina. We need to help them see why bitUSD is a much better option than bitcoin, both for the people of Argentina and for these companies. A few of us have been talking about possible ways to reach out to BitPagos and other companies, but let's get some more feedback from the general community.

Let's use this thread to brainstorm some ideas. Thanks for your input!

Offline Troglodactyl

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Re: Let's Talk Argentina
« Reply #1 on: October 28, 2014, 10:25:46 PM »
Thanks for the overview.  I think we'll have to start with savings, since we don't have lightweight/mobile wallets yet.

Offline donkeypong

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Re: Let's Talk Argentina
« Reply #2 on: October 28, 2014, 10:29:23 PM »
I'm all in favor of it. A number of us are ready to help!

Offline Method-X

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Re: Let's Talk Argentina
« Reply #3 on: October 28, 2014, 10:51:11 PM »
Thanks for the overview.  I think we'll have to start with savings, since we don't have lightweight/mobile wallets yet.

Agree. And there is still a huge value proposition with savings as long as they can confidently liquidate their BitUSD position easily and at any time.  Liquidity is key.

Offline ElMato

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Re: Let's Talk Argentina
« Reply #4 on: October 29, 2014, 04:23:32 PM »
We are planning to offer instant buy/sell of bitUSD as soon as we launch v2 of latincoin.com, but we need a mobile wallet first.

Offline matt608

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Re: Let's Talk Argentina
« Reply #5 on: October 29, 2014, 05:16:34 PM »
We are planning to offer instant buy/sell of bitUSD as soon as we launch v2 of latincoin.com, but we need a mobile wallet first.

Nice!

Offline Mysto

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Re: Let's Talk Argentina
« Reply #6 on: October 29, 2014, 05:21:30 PM »
We are planning to offer instant buy/sell of bitUSD as soon as we launch v2 of latincoin.com, but we need a mobile wallet first.
+5%

Offline Empirical1.1

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Re: Let's Talk Argentina
« Reply #7 on: October 29, 2014, 06:17:36 PM »
We are planning to offer instant buy/sell of bitUSD as soon as we launch v2 of latincoin.com, but we need a mobile wallet first.
+5%

 +5%

Offline donkeypong

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Re: Let's Talk Argentina
« Reply #8 on: October 29, 2014, 06:24:36 PM »
Excellent!

Offline Empirical1.1

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Re: Let's Talk Argentina
« Reply #9 on: October 29, 2014, 08:50:56 PM »
This is one of the few markets where I'd consider share-dropping a valid strategy.

I hate blanket non targeted share-dropping on Bitcoin or other alt-coins.
I'm also not even a big fan of big deposit bonuses on debit cards to Mainstream.

However I would be in favour of giving a deposit bonus or even a $10 free sign up bonus to BitPagos customers as I know most of them are using Bitcoin as a volatility & part store of value hedge, exactly what BitUSD does much better and that many will REALLY want it, once they're exposed to it imo. (A high conversion rate I think it's called.) Also I don't know what the right bonus is, but the per capita income there is lower so you can bring in new users and build network effect in that country with a much lower incentive (cost) needed per user .

It could also be an angle to get BitPagos on board. I would also politely but clearly explain to them that their Bitcoin based business model is obsolete in that country. Their customers are specifically looking for what BitUSD offers, so they will lose market share if they're slow on the uptake.

One market can also spread it worldwide via remittances, they'll start asking for BitUSD from family working overseas across the world. Those overseas workers will then expose their overseas colleagues and friends to BitUSD, who will then send it home to their families in countries across the world. Anyway yeah I'm in favour of really focusing on a few key markets like this as a way to spread BitUSD I think.
« Last Edit: October 29, 2014, 08:59:14 PM by Empirical1.1 »

Offline Method-X

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Re: Let's Talk Argentina
« Reply #10 on: October 29, 2014, 08:59:06 PM »
This is one of the few markets where I'd consider share-dropping a valid strategy.

I hate blanket non targeted share-dropping on Bitcoin or other alt-coins.
I'm also not even a big fan of big deposit bonuses on debit cards to Mainstream.

However I would be in favour of giving a deposit bonus or even a $10 free sign up bonus to BitPagos customers as I know most of them are using Bitcoin as a volatility & part store of value hedge, exactly what BitUSD does much better and that many will REALLY want it, once they're exposed to it imo. (A high conversion rate I think it's called.) Also I don't know what the right bonus is, but the per capita income there is lower so you can bring in new users and build network effect in that country with a much lower incentive (cost) needed per user .

It could also be an angle to get BitPagos on board. I would also politely but clearly explain to them that their Bitcoin based business model is obsolete in that country. Their customers are specifically looking for what BitUSD offers, so they will lose market share if they're slow on the uptake.

The user bitcoinba has a direct line to the CEO of BitPagos. He'll be talking to the CEO tonight and I mentioned to him the community would probably be in favor of airdropping 10 BitUSD on new BitPagos signups. I'm excited to hear what the CEO has to say...!

Offline Empirical1.1

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Re: Let's Talk Argentina
« Reply #11 on: October 29, 2014, 09:04:06 PM »
This is one of the few markets where I'd consider share-dropping a valid strategy.

I hate blanket non targeted share-dropping on Bitcoin or other alt-coins.
I'm also not even a big fan of big deposit bonuses on debit cards to Mainstream.

However I would be in favour of giving a deposit bonus or even a $10 free sign up bonus to BitPagos customers as I know most of them are using Bitcoin as a volatility & part store of value hedge, exactly what BitUSD does much better and that many will REALLY want it, once they're exposed to it imo. (A high conversion rate I think it's called.) Also I don't know what the right bonus is, but the per capita income there is lower so you can bring in new users and build network effect in that country with a much lower incentive (cost) needed per user .

It could also be an angle to get BitPagos on board. I would also politely but clearly explain to them that their Bitcoin based business model is obsolete in that country. Their customers are specifically looking for what BitUSD offers, so they will lose market share if they're slow on the uptake.

The user bitcoinba has a direct line to the CEO of BitPagos. He'll be talking to the CEO tonight and I mentioned to him the community would probably be in favor of airdropping 10 BitUSD on new BitPagos signups. I'm excited to hear what the CEO has to say...!

 +5% Cool fantastic. Excited to hear the feedback too.  +5% to bitcoinba, good work guys

Offline matador123

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Re: Let's Talk Argentina
« Reply #12 on: October 29, 2014, 09:39:18 PM »
Really excited about all of these things. I can't wait to see what the CEO of Bitpagos has to say about all of this. I think the idea to give 10 bitUSD to new signups is a good one. Looking forward to hearing more on this soon.

Offline Mysto

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Re: Let's Talk Argentina
« Reply #13 on: October 29, 2014, 11:07:26 PM »
This is one of the few markets where I'd consider share-dropping a valid strategy.

I hate blanket non targeted share-dropping on Bitcoin or other alt-coins.
I'm also not even a big fan of big deposit bonuses on debit cards to Mainstream.

However I would be in favour of giving a deposit bonus or even a $10 free sign up bonus to BitPagos customers as I know most of them are using Bitcoin as a volatility & part store of value hedge, exactly what BitUSD does much better and that many will REALLY want it, once they're exposed to it imo. (A high conversion rate I think it's called.) Also I don't know what the right bonus is, but the per capita income there is lower so you can bring in new users and build network effect in that country with a much lower incentive (cost) needed per user .

It could also be an angle to get BitPagos on board. I would also politely but clearly explain to them that their Bitcoin based business model is obsolete in that country. Their customers are specifically looking for what BitUSD offers, so they will lose market share if they're slow on the uptake.

One market can also spread it worldwide via remittances, they'll start asking for BitUSD from family working overseas across the world. Those overseas workers will then expose their overseas colleagues and friends to BitUSD, who will then send it home to their families in countries across the world. Anyway yeah I'm in favour of really focusing on a few key markets like this as a way to spread BitUSD I think.
Yea I agree! It would be much cheaper and more effective than targeting bitcoin or other alt-coins. If you want to target bitcoin and other alt-coins this is the best method to do it anyway. Once they see that it actually works and the market cap grows they will start jumping on board.

Offline Mysto

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Re: Let's Talk Argentina
« Reply #14 on: October 29, 2014, 11:08:06 PM »
The user bitcoinba has a direct line to the CEO of BitPagos. He'll be talking to the CEO tonight and I mentioned to him the community would probably be in favor of airdropping 10 BitUSD on new BitPagos signups. I'm excited to hear what the CEO has to say...!
+5%

 

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