Earlier quoted context omitted.
How far off its peak is it again? 75%?
The dollar is around 99% down off its peak. So? Yo just chose some arbitrary timeline that bitcoin looks bad at. That's bad logic.
Not year-on-year it's not.
Venezuelans turn to Bitcoins to bypass currency controls
41–50 of 98 posts
Re: Venezuelans turn to Bitcoins to bypass currency controls
#42Re: Venezuelans turn to Bitcoins to bypass currency controls
#43This is why I think a lot of VCs are investing in the Bitcoin space, and I why I think there is an extremely bright future for the currency. Many economists (i.e., Paul Krugman) can't get past the idea that a currency needs to be backed by a state to be a real currency. That's the most ridiculous claim ever...currencies existed long before nation-states ever did. Events like this are proving those economists wrong.
> can't get past the idea that a currency needs to be backed by a state to be a real currency. That's the most ridiculous claim ever...currencies existed long before nation-states ever did. I think if you examine those economists' arguments further, you'll see it doesn't have as much to do with "OMG where's the state???!" as you seem to think. As you yourself point out, economies have worked since long before nation-…
Nixon took the US off the gold standard, fiat currency controlled by central banks is the real new experiment.
Re: Venezuelans turn to Bitcoins to bypass currency controls
#44The problem here is that nobody wants Bolívars (the Venezuelan currency), since it's almost imposible to convert them back to USD or any other currency. A sales manager for Marriot was telling me that in Caracas they charge 40$ a night if you pay with USD or 300$ if you pay with bolívars. So the only people that would be willing to exchange bitcoins for bolívars would be people who live in Venezuela. So I assume that…
Or, what are the chances that things get bad enough that people begin to request payments for goods or services in bitcoin?
This would solve the problem of shortage of physical us dollars.... Or in the case that you have the ability to request bitcoin can you simply request virtual us dollars just as easily? ( are there restrictions against this? )
Re: Venezuelans turn to Bitcoins to bypass currency controls
#45Not long ago, it was the Chinese who were apparently using Bitcoin to bypass currency controls, and that was to be the 'big thing' that would propel bitcoin on to greatness. Now that effect seems to have petered out and the hype has switched countries... why will it be any different this time?
Bitcoin's adoption continues to increase. Make no mistake about this. It is far from having "petered out": http://avc.com/2014/10/bitcoin-adoption-metrics/ More and more people in China, Venezuela, etc, are using it to bypass currency controls. The problem was the media was hyping Bitcoin and making it sound like it would become instantaneously popular overnight. Instead, it is a process that will take some time. Tha…
I'm probably the one that's wrong here but I thought because it was considered property and not currency you only had to pay taxes when it was used. In fact your IRS linked PDF seems to agree with me.
Re: Venezuelans turn to Bitcoins to bypass currency controls
#46once again bitcoin proves its primary utility is crime
Re: Venezuelans turn to Bitcoins to bypass currency controls
#47The problem here is that nobody wants Bolívars (the Venezuelan currency), since it's almost imposible to convert them back to USD or any other currency. A sales manager for Marriot was telling me that in Caracas they charge 40$ a night if you pay with USD or 300$ if you pay with bolívars. So the only people that would be willing to exchange bitcoins for bolívars would be people who live in Venezuela. So I assume that…
Actually, is the other way around. It is cheaper to pay in Bolivars than Dollars. Right now is 9000 Bolivars (Around 90 Dollars) vs. 130 Dollars a night at the Marriott in Caracas.
It used to be crazy before, if you paid in Bolivars it was only 100 dollars vs 600 dollars if you paid in USD. Fun fact, even if you were paying in Bolivars way less, you still used to get Marriott points as if you were spending 600 dollars a night, so the quickest way to get a lot of points was staying at the Caracas Marriott.
Having said that, I have yet to hear about anyone bypassing the regulations by using bitcoins. Is still not that hard finding someone selling dollars.
Re: Venezuelans turn to Bitcoins to bypass currency controls
#48Earlier quoted context omitted.
Bitcoin's adoption continues to increase. Make no mistake about this. It is far from having "petered out": http://avc.com/2014/10/bitcoin-adoption-metrics/ More and more people in China, Venezuela, etc, are using it to bypass currency controls. The problem was the media was hyping Bitcoin and making it sound like it would become instantaneously popular overnight. Instead, it is a process that will take some time. Tha…
I'm probably the one that's wrong here but I thought because it was considered property and not currency you only had to pay taxes when it was used. In fact your IRS linked PDF seems to agree with me.
You are, indeed, wrong: taxes are owed the moment coins are mined, even if they remain unspent or unused, see question Q-8 in http://www.irs.gov/pub/irs-drop/n-14-21.pdf
Re: Venezuelans turn to Bitcoins to bypass currency controls
#49I am from Venezuela. In case you are wondering how terrible the Venezuelan economy is right now, think about this: Our biggest denomination bill (100 Bolivares) is not enough to buy $1 USD [1]; in january 2013 you could buy $14 USD for the same amount. Also think about the fact that Venezuela has the largest proven oil reserves in the world [2]. I'm not even going to try to explain the currency exchange and control m…
> because no one will want to sell for Bolivares What about tourists? You should encourage tourists to bring bitcoins.
You're half right: "tourists" are the one of the solutions, but you can't easily turn Bitcoin into food.
There's a booming trade in the port cities. Sailors bring dollars, which they trade for sex. That turns prostitutes into currency traders. Bloomberg had a story about this earlier this year.
http://www.bloomberg.com/news/2014-06-09/venezuela-prostitut...
Re: Venezuelans turn to Bitcoins to bypass currency controls
#50I am from Venezuela. In case you are wondering how terrible the Venezuelan economy is right now, think about this: Our biggest denomination bill (100 Bolivares) is not enough to buy $1 USD [1]; in january 2013 you could buy $14 USD for the same amount. Also think about the fact that Venezuela has the largest proven oil reserves in the world [2]. I'm not even going to try to explain the currency exchange and control m…
Would using BTC for remittances have any advantage to the way people currently do it?
How is it usually done now? Through USD?
Is holding USD in Venezuela more valuable than BTC?