What would happen if sanctioned countries officially adopted Bitcoin?

[iNeedATap]

Realistically speaking, what would the scenario look like if Iran, North Korea, Cuba, Syria, Venezuela, and Russia all said "fuck the West", economically unionized, dropped the dollar, adopted Bitcoin as each country's official currency, and backed the coin with each country's oil/gold/gem reserves?

How bad would it hurt the West?
Would it render sanctions ineffective?

 

[Sam Losco]

How would they back bitcoin with their oil/gold/gems?

 

[Rand /pol/]

Literally, and I mean LITERALLY, nothing would change.

 

[Jack O'Neill]

It simply wouldn't happen. Bitcoin or any crypto-currency lacks the middle-man and thus can not be manipulated easily. Many of the nations you've listed are operated by an authoritarian or socialist government. Anything they can't control, they don't want. IF they did, the implications of that are extremely unpredictable. I would bet a major economic collapse would happen. But, who knows!

 

[Billy "the Bot" Bobson]

They would be at the mercy of several foreign interests who own a majority of the bitcoins. Would be smarter if they created their own alt-coin, mined it out past the 60% mark, and split it between themselves in order of power (20% to Russia, 20% to China, etc.). Smarter still if they just stuck to what they're doing now.

 

[RetardedCat]

Hold on are you saying sanctions against countries work?

lmao

 

[Pixy]

Don't the North Koreans already mess around with Bitcoin?

 

[Franjevina]

There is just too little Bitcoin in existence ( let's not forget all destroyed/lost ones ) for it to become "official " currency anywhere .

Btw US dollar is not backed by anything other than 11 aircraft carriers and " spreading democracy near you if need be " .

In some theoretical situation when WORLD drops dollar as reserve/clearing currency it would hurt USA quite bad .

Like late French president Charles De Gaulle said : if anyone wants 100 dollar bill they need to actually produce something or give service in that value,while America only needs to start printing press .

Ever since Bretton Woods agreement of 1944 the rest of the world is subsidising american standard of living .

 

[ArnoldPalmer]

Bitcoin as a national currency would be more volatile than the Zimbabwe Dollar or German Papiermark.

You could buy a house with an amount of bitcoin one day, and the next, not be able to buy so much as a loaf of bread with that same amount. Then two weeks later, with that same number, be able to buy an offshore oil rig and fleet of Ferraris.

 

[Terrorist]

They'd be even worse off

 

[Manwithn0n0men]

There is just too little Bitcoin in existence ( let's not forget all destroyed/lost ones ) for it to become "official " currency anywhere .

Btw US dollar is not backed by anything other than 11 aircraft carriers and " spreading democracy near you if need be " .

In some theoretical situation when WORLD drops dollar as reserve/clearing currency it would hurt USA quite bad .

Like late French president Charles De Gaulle said : if anyone wants 100 dollar bill they need to actually produce something or give service in that value,while America only needs to start printing press .

Ever since Bretton Woods agreement of 1944 the rest of the world is subsidising american standard of living .

Except of course the US isnt the sole reserve/clearing currency (and hasnt been since the 80s)

the power of the dollar is the US Capital Market. Which is VASTLY bigger then the US economy. and the US Asset market. So for the dollar to be "Just another currency" either massive economic collapse of the US [and likely the rest of the world] would have to happen or EVERY OTHER COUNTRY would have to make their economies more attractive to capital.

EU has tried (and failed) Japan has tried (and failed) China has tried (and is currently failing) India has tried (and failed multiple times) Russia has tried (and failed) and Brazil has tried (and failed)

 

[Trig.Point]

It simply wouldn't happen. Bitcoin or any crypto-currency lacks the middle-man and thus can not be manipulated easily. Many of the nations you've listed are operated by an authoritarian or socialist government. Anything they can't control, they don't want. IF they did, the implications of that are extremely unpredictable. I would bet a major economic collapse would happen. But, who knows!

Venezuela already tried it, and it failed for pretty much those same reasons.

Petro (cryptocurrency) - Wikipedia

en.wikipedia.org

It wouldn't really solve the issues that sanctioned countries face, in that they'd still be cut off from trade with with the West, and locked out of the global finance system.

Also sanctions are getting more effective because the US force large companies to basically police it for them. No company wants to be faced with staggering fines just because some shitty subsidiary sold something on ebay to the Iranian Revolutionary Guard.

 

[Manwithn0n0men]

Venezuela already tried it, and it failed for pretty much those same reasons.

Petro (cryptocurrency) - Wikipedia

en.wikipedia.org

It wouldn't really solve the issues that sanctioned countries face, in that they'd still be cut off from trade with with the West, and locked out of the global finance system.

Also sanctions are getting more effective because the US force large companies to basically police it for them. No company wants to be faced with staggering fines just because some shitty subsidiary sold something on ebay to the Iranian Revolutionary Guard.

Except for when the US government issues Waivers

[Like they do with western companies doing business in Cuba]