http://panampost.com/wp-content/uploads/featured-inncoin-anthem.png

 I know this opinion might be opposite of many here and elsewhere in the cryptocurrency community, but we must look at the reality of what is actually going to happen if countries used cryptocurrency. I was actually going to say digital currency, but the reality is most of our currency is digital and just numbers on a screen. Cash is a small percentage of the money that actually exists out in the wild. So I changed to cryptocurrency because with now countries like China and Sweden have announced possible plans at issuing their own forms. 


First of all the coins that any country issues is never going to be fixed as their central banks are never going to give up the power of fiscal and monetary policy that modern day Keynesian economics is based on. The reality of the situation is these governments are going to force their citizens to use this currency and they will be easily able to inflate the currency at any time they want without any effort. In addition it will be extremely easy to monitor spending habits on citizens and make sure they pay all the taxes they are due. The lack of privacy they will create will be unsettling. I am a big believe that privacy should be a right. I pay my taxes and don’t break any laws but I still don’t want my government monitoring everything I do, which many people have a hard time to understand.


https://www.sott.net/image/s5/104700/full/government_spying.jpg


The problem with a system like the one I described is that once Pandora’s box is open, there will be no going back. It is just like the NSA in the United States, they aren’t going to one day just stop monitoring everyone and if they do it is because they have found a more efficient way to do it. The government has no business knowing everyone I transact with and exactly what I buy. Im not a libertarian, but I can definitely relate with libertarians in this aspect. However, bitcoin is not a solution for a national currency.


Just like I don’t believe in going back to the gold standard, I don’t believe in making bitcoin a national currency. I would like if governments purchased it and held it like they hold gold, but as a base for a monetary system I think it is a bad idea. I do believe that Keynesian economics can work if governments show reserve in exercising the power of the central bank. However I know that it is human nature to exercise the power if they have it so in that regard I am torn. I primarily see bitcoin’s strength as a method of storing value that can be easily hidden or kept by something as simple as remembering a brain wallet. 
The real use I want to see for bitcoin is the ability for people all around the world to store their value without having to physically store it somewhere. I think if enough people use bitcoin as a store of value, it will force governments to take actions that will provide people will incentives to keep their own currency rather than abandon it for something more stable. We are lucky in the US to not have this problem but many governments in the world devalue their currency by tens of percents a year. I want these people to be able to have options to protect their value they earned from their hard work without having it devalued. Many countries do not want this and that type of disruption is what interests me the most. 


https://www.youtube.com/watch?v=lHcTKWiZ8sI


Governments lack the ability to really understand or process bitcoin as a threat now, but I think as our market cap moves up and up to a point where it is actually competitive, they will try to crack down. At that point however it will be too late. I think the idea of governments using a cryptocurrency as the primary currency is a cool idea but if you look deeply into it, the only beneficiary is the government. In places like China where they are looking to not only roll out a currency, but an entire social ratings system, the future looks increasingly scary. Im sure many in those places will be forced to use bitcoin because it is the only option for them. Like always im interested to see how things progress. 

-Calaber24p