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How can Bitcoin influence the economy of a country?

Tue Jun 20, 2017 11:02 pm

There are few better properties of Bitcoins over other platforms like :
1. Privacy
2. Open to All
3. Decentralised

Privacy : Within Bitcoin network people can trade without actually disclosing who they are in real lives. (Remember it is just a sequence of numbers that will work as a pseudonym for A)

It is just like cash where nobody needs to disclose identity (ex. bank account details) , unlike in other options like paypal or e-cheques where one needs to tie bank account details while transacting.

Benefit over other platforms: This property of Bitcoins is hugely beneficial to people who wants to buy commodities without disclosing the amount they have spent on it. (As bitcoin network allows you to deal with your sequence of numbers so generated not the name or any other details)

Open to All : Anyone with internet connection can get involved with Bitcoin network.
All one needs is to either download “Bitcoin Client” or use a Third Party Service like Mt.Cox which manages all the mechanics of the behalf of the user.
All details relating to the transactions are are open and quite clear to the users , the users just needs to enter the amount they want to transfer and the software takes cares of the mechanics involved.

Benefit over other platforms: If one wants to deal in electronic payments , typically one needs a Debit or Credit Card and a bank account whereas Bitcoin Network eliminates that too.

Decentralised : When A transacts with B over the bitcoin network that transaction won’t go to any other party like a bank or some other authority.
Therefore no one entity can control the money supply in Bitcoin network & so no one can reverse the transaction and transfer the sum to some other person’s account.

Benefit over other platforms: Traders who do not undertake online trade due to fear of online frauds can be assured of no frauds as bitcoin network makes it very hard to reverse the transaction.

Demerit of decentralisation : A central authority like a bank performs a very crucial role like validating the currency or transactions against fraud , so bitcoin is left quite vulnerable in this regard because of the absence of a central authority.

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Re: How can Bitcoin influence the economy of a country?

Mon Jun 26, 2017 9:35 pm

May I add one?

Bitcoin preserves the spending power of the citizens of a country. When a citizen buys bitcoin and then the value of bitcoin in fiat terms rises that citizen can now buy more in their local economy, which helps the economy hum along...whether the retailers benefiting from the increased spending is keeping their revenue in their local currency or converting it to bitcoin.

This is an indirect benefit that no one is talking about. And it it's certainly hard to measure but it is a legitimate influence.

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Re: How can Bitcoin influence the economy of a country?

Mon Jun 26, 2017 10:21 pm

On its own, BTC isn't very private. Many other crypto-currency projects handle privacy better than BTC.

A lot of BTC's privacy weaknesses can be mitigated with coin-mixers and end-to-end encryption, but it's not really "built in."
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