How Bitcoin will boost growth in Latin America

There is a lot of controversy about how Bitcoin and the authorities and companies in China and the US react to this, but there may be more interesting possibilities for this currency and other cryptocurrencies. The Wall Street Journal published an article about a clear disagreement in Latin America a week ago. Countries facing the Atlantic have more command-oriented economies, while countries facing the Pacific [except Ecuador and Nicaragua] have more market-oriented economies. Latin America has become a continent of global concern, Europe's economic growth has stagnated, and the Asia-Pacific region has been welcomed by the global economic dialogue. Alternative currencies will leave a mark in Latin America and will affect both parties in different ways. in the end, from

Bitcoin and growth in Latin America will receive attention at the same time from

 Cryptographic currencies [including Bitcoin] will provide Latin American businesses and entrepreneurs with equal opportunities to compete with the rest of the world.

Famous national-led economy in Latin America

  • Ecuador
  • Bolivia
  • Cuba
  • Brazil
  • Argentina
  • Nicaragua
  • Venezuela

The economies of these countries are more in line with national interests. On this list, the most extreme state-run economy is Cuba, which has a communist regime and made some concessions to economic liberalization. Venezuela can be said to be the second-extreme state-owned economy and is in the midst of a socio-economic and political crisis. Argentine President Cristina Fernandez de Kirchner politely treats unstable and command-oriented economic events, including price controls, drama involving ownership of the Falkland Islands, 26% Inflation, police strikes, and the nationalization of YPF. Very few measures. For a long time, Brazil has been afraid of resorting to old methods. There are still a lot of traditional tape festivals, and the tax is relatively higher than other countries.

Famous market economy in Latin America

  • Mexico
  • Colombia
  • Panama
  • Chile
  • Peru
  • Belize

Mexico's efforts to attract and develop its business are not limited to Mexico City, and Guadalajara is highlighted as a growth destination in the digital and technology sectors, just as Bogota is a major economic town established in Colombia and Medellin. The same way has produced a young digital power. Mexico is currently the 14th largest economy and is growing. Due to the persistence of drug demand on the northern border, Mexico is still plagued by drug cartels. Ciudad Juárez was plagued by violent acts caused by cartels, which were considered so bad that the Sun Bowl strongly prevented tourists from crossing the border during the Sun Cup competition. from

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 An opportunity to promote tourism and business development in El Paso and Ciudad Juarez in Texas.

Colombia is still fighting the FARC, but apparently won the battle after Uribe’s presidency. The FARC is limited to the jungle area of ​​Colombia. The active peace talks with the FARC have also been negotiated to some extent. Colombia's economy has a lot of room for growth in agriculture, energy, finance, tourism and digital technology.

Belize is actively calling on Americans to buy real estate in the country to sell their original beaches, tax policies and fluency in English. There is still a lot of work to do in Belize, it must get rid of stigma.

Chile is considered by the Heritage Foundation to be the number one country in Latin America's economic freedom. Chile enjoys a trade surplus and the central bank’s policy rate is 4.5%, which will attract investors outside Chile. For countries wishing to use arbitrage trading to deal with countries with very low interest rates [such as the US, EU and Japan], the Chilean peso deal may be worthwhile. Chile’s inflation rate is low and its policies not only benefit copper exports but also benefit other exports to help sustain the surplus. Morgan Stanley expects Chile, Peru, Colombia and Mexico to grow an average of 4.25% in 2014.

These countries did not face the struggle for robbery outbreaks, toilet paper problems, and no leaders tried to take action against another country.

The impact of bitcoin on a country-oriented economy

In all of these country-oriented economies, there are currency controls. The price controls in Venezuela and Argentina are notorious. The influence of the Brazilian government in the economy stems from its excessive influence, possible corruption and inflation. Entrepreneurs, investors and ordinary individuals will seek the market to meet their needs. Quotas, the traditional economies section, high costs and possible surveillance are associated with these country-oriented economies. Bitcoin and cryptocurrencies will meet many of the needs of the Internet.

Global competition in countries that want to become more isolated can have a negative impact, but the use of the Internet and the ability to trade in a global market that may not be traceable will enable citizens to get what they need at a competitive price. Goods and services. Venezuelans will be able to buy toilet paper from abroad without having to use a heavily devalued currency. Venezuelans will also have the opportunity to engage in entrepreneurial activities while still in Venezuela to finance their efforts and may defect to other countries, such as Colombia. More than 26% of Venezuelans use the Internet every day. Venezuela has not filtered the Internet, and buying bitcoin is much safer than holding Bolivar.

The use of Bitcoin can make its existence useless by using private money, thus making the government's tight bondage to the economy disappear. There are fewer taxes that can be collected, financially and possibly literally armed [you may be able to buy anything on the Silk Road], and become viral as the use of cryptocurrencies, political leaders And the influence of law enforcement is also reduced. This process of thinking can be applied to Venezuela-lite in Argentina, a potential economy.

The Brazilian economy is likely to grow further by providing companies with more business overseas and overcoming foreign sovereign currency issues. The 2014 World Cup and the 2016 Olympic Games will put a lot of pressure on the Brazilian economy to keep it growing. Lower transaction costs, currency familiarity and conflicts with the nationality of Bitcoin customers will help to seek Brazilian companies doing business outside of Brazil. With the influx of tourists and merchants into Rio de Janeiro and São Paulo, accepting bitcoin and other cryptocurrencies will remove the barriers to having to exchange currency and make safe purchases. Brazil may be a more command-oriented economy like Argentina, but global expectations and ambitions should get them out of the past.

For country-oriented economies, Bitcoin and its competitors offer greater freedom, currency security, entrepreneurial opportunities, transaction security and privacy. In the case of Venezuela, this could lead to changes in governance, just as social media is acclaimed for bringing the “Arab Spring” into life. Many of the problems around Venezuela are essentially economic issues, and the black market is a natural choice. Preventing asset confiscation by keeping assets in a digital wallet in the cloud is much safer than keeping funds in a bank regulated by the Venezuelan government.

The role of Bitcoin in the economic growth of Pacific countries

The level of entrepreneurship described in the previous section is lower than that of Colombia, Mexico, Chile and Peru. Cities in Colombia and Mexico are hoping for global players in the digital space. Lower exchanges and transaction fees will make it easier to attract business from Europe, Canada and the US. Credit cards and PayPal charge transaction fees to users who wish to make international transactions, and the fee will be reduced.

With call centers, development and design companies and independent contractors not only be able to compete competitively as they are now, but also accept bitcoin and other cryptocurrencies, outsourcing in Latin America can experience growth. This is not a temporary matter, but a question of making easier, cheaper deals. The fewer barriers to making a purchase, the more successful the sale, which will help Latin American companies go global, which can boost the growth of venture capital.

Bitcoin will lead to more international business transactions in Latin America and promote economic growth. The interests of these countries are different, because the demand for stability is not urgent, but the desire of these countries to have unlimited satisfaction with growth. Entrepreneurship, global competition, lower transaction costs, transaction security, competitive competition, improved economic development and changing perceptions are all benefits of using cryptocurrencies in these countries. A startup in Medellin or Cartagena can compete for a service contract with a company in Toronto and another company in Indianapolis. Eliminating nationality barriers from transactions, focusing solely on the services offered and the costs involved is a significant benefit.

In these countries, consumers will also win because they will gain purchasing power because certain commodities are more expensive in the domestic market than foreign markets. Former police and immigrants can send money to family members in their home country in a simple, cheap, fast and secure manner. This can help promote the local economy.

Like air travel, the Internet, telecommunications and social media, bitcoin and other cryptocurrencies help make the world smaller. Cryptographic currencies promote globalization, and Bitcoin will help provide opportunities for Latin America, which is eager to compete and thrive in global markets.