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Re: [2014-04-06] CoinReport - Scotland's Search for a Reliable Currency, Scotcoin?
by
devphp
on 08/04/2014, 08:10:17 UTC
Why can't they adopt the Bitcoin?

No nation state will adopt bitcoin officially, ever. You have to be living in a fantasy land to think otherwise. At best it will always be just a complementary currency, although at turbulent (hyper)inflationary times it may take a big share of the market, but again, unofficially. Actually this scenario is very likely, as we see nation states are gearing up for more quantitative easing (aka money printing) in the next years, which should help other forms of currencies to become more popular.

The reason is simple: a nation state wants to control currency issuance, but it's impossible with a decentralized currency. Any fantasy about an attempt to premine a currency and distribute it among the population is utterly stupid for 2 reasons: 1) distributing the currency for free is a stupid form of distribution as it lowers the value, because people only value what they must work for to get, and is prone to massive dumps of that currency; 2) why go through computer 'mining' process they (those who make decisions) don't quite understand if they could just produce any number of traditional digital currency in the form of bank entries with a few mouse-clicks, or print good old bank notes, and reach the same effect.

* For reference: official currency is the one taxes are paid in.