Author Topic: Argentina & Venezuela  (Read 4832 times)

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Offline donkeypong

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It's not about convincing the governments. I think both countries are trying to prop up highly inflationary failing currencies and force their citizens to use them.

However the citizens have created a large black market USD economy. Bitcoin or BitAssets would fall into a similar category.

I actually think you're right. But I'm also speaking of greater government tolerance toward these businesses and their local bank involvement, etc. They can make it easy for people or they can make it more difficult. And how cool would it be if a government did decide to participate?

They just need a little convincing. Maybe an offer they can't refuse. From a peg-legged pirate named named Pete.


Offline Empirical1.1

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I'll add one more point in favor of this argument: both these countries have ALREADY spited the U.S. and its international monetary system. Venezuela is happy to sell its oil in the U.S., but its government now is still the leftist successor/vestige of the late Hugo Chavez, who talked junk about the U.S. for many years publicly and was best buddies with Fidel Castro. Argentina, though it was a closer ally, recently moved its loan out of a U.S. bank and essentially started servicing its own debt. Both of these countries have less to lose (than most others) by doing something radical that flies in the face of the default economic system and its USD currency. And yet both of them have sizable economies and enough technological wiring to make an impact if they were to embrace crypto.

BitUSD would be the perfect currency for either one. Or we can go with a BitPesos or BitBolivars if they prefer, pegged to dollars or any other appropriate measure.

It's not about convincing the governments. I think both countries are trying to prop up highly inflationary failing currencies and force their citizens to use them.

However the citizens have created a large black market USD economy. Bitcoin or BitAssets would fall into a similar category.

Offline carpet ride

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If we may start revolutions in these countries, let's suggest they move all money into BitUSD, then what, they switch from taxing everything to property only? 


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Offline donkeypong

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I'll add one more point in favor of this argument: both these countries have ALREADY spited the U.S. and its international monetary system. Venezuela is happy to sell its oil in the U.S., but its government now is still the leftist successor/vestige of the late Hugo Chavez, who talked junk about the U.S. for many years publicly and was best buddies with Fidel Castro. Argentina, though it was a closer ally, recently moved its loan out of a U.S. bank and essentially started servicing its own debt. Both of these countries have less to lose (than most others) by doing something radical that flies in the face of the default economic system and its USD currency. And yet both of them have sizable economies and enough technological wiring to make an impact if they were to embrace crypto.

BitUSD would be the perfect currency for either one. Or we can go with a BitPesos or BitBolivars if they prefer, pegged to dollars or any other appropriate measure.

Offline Method-X

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+5% This is definitely the way we should all be thinking. BitUSD only needs to "catch" in one significant area and it will spread everywhere else it's needed. I remember reading about a few companies looking to disrupt M-Pesa... they would be ideal partners.

EDIT: https://www.bitpesa.co
« Last Edit: October 15, 2014, 04:12:47 pm by MeTHoDx »

Offline Empirical1.1

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Argentina had such a good experience last time they had a USD-pegged currency. I'm sure they'd love it... ;)

In all seriousness, adoption down there means someone with BTSX has to trade them away for Argentine and Venezuelan currency. What's the business case for doing so?

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Actually the USD is exactly what they want.

https://flightfox.com/tradecraft/argentina-black-market

http://www.zerohedge.com/news/2013-05-15/argentines-are-hoarding-1-every-15-cash-dollars-world

The business use case is an entire economy worth $100 Billion BitUSD+
BitUSD is also vastly superior to a cash based economy as it can be sent online easily instead of in person etc.

Like M-Pesa once it's shown to work it will then spread worldwide to similar use case countries.
(M-Pesa is now in South Africa, Afghanistan, Eastern Europe and India.)

We don't have to worry about exchange rates etc. we just need to demonstrate BitAssets to the current crop of Bitcoin entrepreneurs in those countries and the rest takes care of itself.
« Last Edit: October 15, 2014, 02:50:01 pm by Empirical1.1 »

Offline emski

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Argentina had such a good experience last time they had a USD-pegged currency. I'm sure they'd love it... ;)

In all seriousness, adoption down there means someone with BTSX has to trade them away for Argentine and Venezuelan currency. What's the business case for doing so?

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Trading BTSX for Argentine or Venezuelan currency is the same as other markets. In the worst case you will charge a little extra (to cover the cost of converting to USD).

Offline biophil

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Argentina had such a good experience last time they had a USD-pegged currency. I'm sure they'd love it... ;)

In all seriousness, adoption down there means someone with BTSX has to trade them away for Argentine and Venezuelan currency. What's the business case for doing so?

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Support our research efforts to improve BitAsset price-pegging! Vote for worker 1.14.204 "201907-uccs-research-project."

Offline Empirical1.1

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A recent comprehensive study found that the two countries most likely to adopt Bitcoin (BitAssets  :) ) are Venezuela and Argentina.

http://www.coindesk.com/argentina-most-likely-adopt-bitcoin/


Primary Reason: Highly inflationary local currencies and low accessibility to alternatives.

Those two countries are literally begging and clawing with their fingernails for BitAssets.

What is the opportunity?

Argentina's GDP:      $600 Billion+
Venezuala's GDP:     $400 Billion+
Total:                      $1 Trillion +

In Kenya, up to 40% of the GDP flows through M-Pesa
(A mobile phone based money transfer service using cellphone minutes as currency.)

I would say M-Pesa's success is the result of poor banking infrastructure but it does show that even a third works country can adopt a new payment & money system if the need is there and what a significant part of its GDP it can become.


Targeting: There are only a handful of Bitcoin exchanges and partners that need to be pitched BitAssets in these countries. Once they understand them I'm sure they'll agree that they are what they're looking for vs. Bitcoin. That's the entry point. I believe BitAssets can spread like wildfire there because that's where the need for them is highest. The potential market size could be very significant too.