Throughout my years of growing up in the country of Zimbabwe there's always one big factor which disrupted our way of life, this factor was immense inflation and shortage of cash flow within the country. Zimbabwe having made it to Genius book of world records in terms of highest inflation in the world reaching 5 000 000 000% abandoned its currency in 2009 due to other countries refusing it as legal tender.
The same can be seen in the present 2017 in Zimbabwe with the new notes which have recently been released. Many fear that the hyper inflation that was once experienced will return. The shortages of the US dollar which Zimbabwe currently uses in parallel with its own currency is already facing shortages and the people of the country are not able to access funds. This brings us to our point, in my opinion i think instead of adopting other currencies countries like Zimbabwe should make use of Bitcoin as its legal currency, a cryptocurrency will eliminate the possibility of shortages and it would also solve the issue of not having to print new money in order to cope with the demand. There would be many advantages of adopting an E currency which could help governments focus more on other aspects rather than the cash shortages in their prospective countries.
Advantages:
- It would eliminate cash shortages since bitcoin is limitless
- There would be no need to waste millions of dollars to print valueless currency
- It would influence countries to develop more technologically
- It as seen is increasing immensely in value being the worlds most valuable currency
- Bitcoin is recognized and used world wide
Disadvantages
- There can sometimes be very sudden changes in the market and a value can drop from 3000 to 2000 in a single hour
- Since it is an e-currency there is security issues pertaining to hacking
- Since bitcoin does not measure a countries economy it would be hard to determine whether the country is doing well or not
- Some third world countries may have to go under training before implementing such a currency which costs a lot of money
Conclusion
In my opinion i think this currency could work as legal tender however due to the issues of uncontrollable rising and falling at any given time this could affect a country immensely, therefore further research would need to be done to figure out how to solve the related issues before implementing such an operation. Hope you guys found my article interesting :-) up vote and comment if you like, cheers !
