Whew!

I saw the link to the article on Paul Craig Roberts site and thought the crypto pundits may be interested!

I'm not, really. Passing interest maybe?

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japie said..
Whew!

I saw the link to the article on Paul Craig Roberts site and thought the crypto pundits may be interested!

I'm not, really. Passing interest maybe?

Sorry, I hope I don't come across too strong on the Venezuela thing.

As for these other countries using crypto currencies, I wonder whether they ever sit back and wonder why things are often priced in USD. To my mind its because it is a currency that holds its value and can be used as a common denomoinator between other currencies.

If the Chinese yuan was seen to be a super strong currency, not open to manipulation, and easily exchanged with other countries, people would use it. Negotiate your purchase in yuan? Sure, why not, as I know it will be backed by value.

Going back to the basket case of Venezuela, if you negotiate a contract sale based on Bolivars, next week you will have lost out as the value has fallen so much in that time, and there is no backing for the currency. The government won't guarantee you it will still be worth $1000 USD next week even if thats what it is worth today, so why would you use it?

Blockchain is all about being able to validate something based on a documented history of where it has been, what it is related to, to ensure that it is what it says it is. If Venezuela just tries to 'print' more of these, it just shows up that there is no intrinsic value in it.

On the other hand, they could just buy Bitcoin, but that would cost them actual money, which is not what they really want out of it.

I spent years doing f@h folding at home mostly on yellow dog ps3 fatboy rigs... Can you imagine how i felt watching the bitcoin debacle? Im to scared to calculate what i would have been worth.
Im kind of glad i decided computers were stupid and concrete was better.
Id be dead from a overdose which i would have got from not even doing drugs just contact high from all the ibiza party girls on my super yacht

How long will the US dollar though remain par value and the chosen international currency of trade? Yuan is gaining more traction every year in terms of overall trade. Currencies don't last forever. They all have a used by date and it's been a long time since the British Stirling was dropped at the Brenton woods agreement thingy after world war 2.