Quote from: Xester on February 18, 2017, 02:32:48 AM

Quote from: Bungeebones on February 18, 2017, 01:56:45 AM

I ran across this article http://www.investopedia.com/articles/04/082504.asp about the idea that a country abandon the local currency in favor of the exclusive use of the U.S. dollar (or another major international currency, such as the euro). They call it "dollarization" so why don't we add "bitcoinization" to the discussion?

It also talks about the idea of "pegging" their local currency to a major international currency (this differs from dollarization as it is non-exclusive use).

So, what if countries start using Bitcoin in either of these ways? There are many (hundreds) of countries, some too small to really develop "counterfeit" proof fiat paper currencies. And with the proliferation of cell phones, digital money is just more efficient so they would be able to leap frog over the whole fiat fiasco by going right to digital.

So what might countries experience if they did allow Bitcoin an equal playing field to compete with other currencies that their populations are already using? Especially the type/size country the article is talking about (smaller ones).

Read more: Dollarization Explained | Investopedia http://www.investopedia.com/articles/04/082504.asp#ixzz4YzsnBALH
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Bitcoinization is not a bad idea since it can be done just like dollarization. But there are conditions that we need to do so bitcoin can be qualified to be used to all country as a replacement of local currencies. The condition of monetary circulation is the first thing and that means that the number of bitcoins in circulation is not enough to cater the number of citizens all around the globe. Hence to make it possible we need to increase the number of bitcoin in the circulation.

That's a must to have a increased number of bitcoin to regulate the needs of the citizen. This is not a possible solution with bitcoin, because mining is taking place with limitations in the generation of coins along with halving occurring every four years. Now based on requirement if the number is increased the value it has got as well the system collapses.