Bitcoin is fast, secure, nearly free, has a stable supply and has a high level of user control… its just plain better than the banks. You have to wonder why the hell everyone isn’t using it? But the Bitcoin economy is still fragmented and dependent on payment processors and exchangers.
Merchants accept bitcoin only to convert it back into their local fiat currency, and who can blame them? There just aren’t enough bitcoin accepting businesses out there and they have suppliers and landlords to pay. But bitcoin was meant to be a peer-to-peer currency, not a peer to exchanger to bank to bank to exchanger to peer currency.
Crypto will win the currency wars, but it may be a while before it reaches your home town. Bitcoin is better, but change is hard.
Continue reading “Networks will form and needs will be met. The mechanics of Bitcoin adoption.”
Argentinian’s are increasing looking for monetary alternatives as the country’s high inflation rate has brought on tough capital controls. Argentinian’s are banned from buying dollars, are subject to a 20% tax on foreign credit card purchases and restrictions on owning and valuing foreign assets. The country’s official inflation rate is 10.6%, but many estimates have the rate much higher, around 26%.
The Bitcoin market in Argentina is small but expanding (having doubled since February) and TradeHill, the recently resurrected Bitcoin exchange, is betting that the digital currency will take off in Argentina.
In an interview last week TradeHill founder Jered Kenna said that “Argentina possibly has the most demand I’ve seen out of Latin America for Bitcoins,” adding that his business has been talking to local banks and is planning a local office.
From The Blue Market
This post is a peep into the underground exchange markets for dollars and bitcoins in Argentina. For the last couple of weeks, I have experienced the informal exchange of bitcoin and dollars on first hand in Buenos Aires. Furthermore, I have realized how both locals and expats may reap significant gains by using bitcoins as a medium of exchange.
Continue reading “The Blue Market: Bitcoin, Dollars and Pot-Banging Protests in Argentina”
Bad economic times and capital controls go hand in hand. In 1933 FDR used Executive Order 6102 to confiscate US citizen’s gold as mentioned in the above video. The International Emergency Economic Powers Act (IEEPA), means the same thing could happen again today.
Extreme capital controls aren’t just a possibility, they are a reality in a many parts of the world, particularly Argentina.
Continue reading “Capital Controls: IEEPA, Gold and Argentina”
North Dakota congressional candidate Eric Olson accepts donations to his campaign in Bitcoin http://ericolson2012.com/donate/ And sitting New Hampshire state representative Mark Warden is accepting them for his re-election campaign. http://www.markwarden.com/page/contribute-campaign
Attention digital currency providers, start advertising in Argentina. http://www.forbes.com/sites/jonmatonis/2012/09/04/argentina-begins-tracking-all-credit-cards/
BitInstant’s Charlie Shrem wants Bitcoiners to “get together and get a SuperBowl ad” adding that “I want this commercial to be a statement to the banks and governments of the world and say ‘Look, your people don’t like your fiscal policies, you’ve put us in a recession, you’re screwing us up so much. We’re taking control of our own money, the way we’re doing it is Bitcoin.’ I want to scare them.”
Also, in the next few weeks BitInstant should be open for business in Canada, 3,700 people have already signed up to get the new Bitcoin debit card, and loads more Bitcoin debit card details here http://codinginmysleep.com/bitcoin-mastercard-followup-interview-with-charlie-shrem/
GATA Chairman Bill Murphy is appearing on Russia Today’s “Capital Account” program at 4:30 p.m. ET Wednesday. http://www.gata.org/node/11714
And yet another community currency in Spain http://www.guardian.co.uk/world/2012/sep/04/spain-euro-free-economy?newsfeed=true