Is It a Good Thing that Bitcoin Has a Global Reach

Discussion

A contribution from Alessio Bini of Senza Soldi:

'A unique elettronic currency free form financial power, by which you can buy all do you want in every corner of the world, from U.S.A. to Russia.

Overlook the legal aspect and the suspiscion that Bitcoin is neither legal nor anonimous.

All the rest is beautiful, isn't it?

No.

The famous Bitcoin is full of bugs, the biggest of them is that it's spendable in every corner of the world.

The name of the area in which a currency is spendable is OCA = Optimal Currency Area.

For many years economists have studied in depth the consequences within an OCA.

The most direct consequence of an OCA is that productive factor must be perfectly movable: merchandises and humans; for both it's must be possibile to move in each corner of an OCA.

In particular, inboard an OCA, happens particular phenomena:

• the strongest area can make its social politics dominant, the weakest area no. In other terms, the strongest will be stronger and the weakest weaker, like it is happening in Europe amongst the States that use the Euro.

• The salaries will start to converge on the entire planet and, since downgrading salaries makes enterprises more competitive, we can bet that salaries will become identical to the lowest, say the level of salaries in Africa

• Inflation rates will converge and the weakest area cannot regain competitiveness by depreciation.

When there will be a unique currency, we must be citizen of the world, forgetting our language, our lifestyle and our culture."