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Comment by rawtxapp | Hacker News Reader

Even though the market hasn't really reacted to this news (which I suspect is due to the fact that it's proposed/didn't happen yet), this is one of the most bullish news in a very long time in my opinion (even more bullish than companies buying into it). I suspect this will start the domino effect of countries slowly, but surely adopting BTC.

It'll probably be the smaller countries first where they don't have great currencies to begin with, so they'll always have to use a foreign one, either USD or an alternative. With USD, they are at the mercy of USG and will get pushed around by them. With Bitcoin, the network itself is kept safe with all the energy and mathematical properties, but the price is very volatile at the moment, though volatility will decrease with increasing market caps.

This will be a very interesting experiment to watch.

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The smaller countries who don't want to be beholden to either the US or China's fiscal policy. We seem to be building up a second cold war, and I imagine for many countries being able to back your economy with a currency that isn't controlled by either of the two major players is tempting. China may well end up regretting discouraging its miners from holding the majority stake, given the Sino power that could project. This is all very heavily speculative, though, I'm just spitballing an interesting potential chain of events

I think if Bitcoin price turns around and keeps increasing (big if), we are going to see a large scale game theory at play. The countries that have opted in will be in a much better place so that would create a race to get in.

The next 5-10 years will be very interesting times to live through, especially after record USD printing.

Why would they benefit? Large scale deflation would be quite destabilising for a country.

Their "net worth" would increase significantly wrt to other countries that didn't adopt it or adopted it too late.

Why would countries give up control over monetary policy voluntarily? It seems a rather dumb idea.

Note that in the case, it's a dollarized country that made an announcement.

(And it would indeed be a lot more suprising if that was a country that's more in countrol of its monetary policy that made a similar announcement).

El Salvador has already given up control of its money supply. It uses US dollars as its currency.

El Salvador already gave up that monetary control by using USD, many other countries also have currencies that are worthless and/or rapidly becoming worthless.

it's very interesting indeed. i think it becomes inevitable once the next country gets on board. the dominos will be cool to watch - like states decriminalizing marihuana. bop bop hodl.

The market did react. BTC was down and then turned around on the hourly that this was announced? Or am I missing something?

That's typical volatility, imo, a reaction would have been 10+% in either direction and it was well known throughout the day well before the actual announcement itself.

Or maybe the value of this news is just deemed as <10%? That's a completely arbitrary number which is ultimately only based on the number of fingers humans tend to have.

That's very much possible, but it's still difficult to know that through the noise of the usual volatility I guess.

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