Will failed national cryptocurrencies lead to adoption of better cryptocurrencies?

Iran is launching a cryptocurrency backed by its national fiat currency the Rial.

Transactions will be recorded on a private blockchain based on open-source Hyperledger Fabric technology. The Central Bank of Iran will control the issuance of new tokens at their discretion.

The new cryptocurrency would help move money and avoid sanctions.

Venezuela has tried to launch the Petro as an attempt at a stablecoin.

The Venezuela Petro cryptocoin project lead was fired for failing to raise $5 billion for a national cryptocurrency project.

In July, President Nicolas Maduro announced on live TV the slashing of five zeros from the hyper-inflated regular Bolivar currency and announced a desperate attempt to revive the Petro by tethering the new bolivar’s value to it, calling a meeting with all banks to improvise something.

The dictatorship in Venezuela and Iran will fail with their cryptocurrencies. They are not setting up the coins to be truly anti-inflation.

The failing economies of Venezuela and Iran could see more of the people becoming aware of other cryptocurrencies and they could turn to better cryptocurrencies.

People could seek out these other cryptocurrencies to preserve their wealth from hyperinflation.

48 thoughts on “Will failed national cryptocurrencies lead to adoption of better cryptocurrencies?”

  1. I will refrain from talking of Iran, but I have been following the situation in Venezuela for over a decade, and the situation the Venezuelans find themselves in is directly related to the economic mismanagement and prepotence of the late H. Chávez and particularly that of N. Maduro. They have been hard at work nationalising TV stations, supermarkets, drugstores, sundry consumer goods factories, and just about every kind of private business small, medium and large, and then letting them languish in administrative malady. The economic situation has been deteriorating more or less steadily since at least the last term of the late Chávez, throughout the whole span of the fairly sympathetic Obama administration. The only US economic policy which has palpably worsened the Venezuelan situation was the former’s pursuit of commercial shale oil cracking (abundantly covered here in NBF), which caused the oil price to fall in response in the early 2010s.

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  2. I will refrain from talking of Iran but I have been following the situation in Venezuela for over a decade and the situation the Venezuelans find themselves in is directly related to the economic mismanagement and prepotence of the late H. Chávez and particularly that of N. Maduro.They have been hard at work nationalising TV stations supermarkets drugstores sundry consumer goods factories and just about every kind of private business small medium and large and then letting them languish in administrative malady. The economic situation has been deteriorating more or less steadily since at least the last term of the late Chávez throughout the whole span of the fairly sympathetic Obama administration.The only US economic policy which has palpably worsened the Venezuelan situation was the former’s pursuit of commercial shale oil cracking (abundantly covered here in NBF) which caused the oil price to fall in response in the early 2010s.”

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  3. Venezuela has collapsed. It’s government is pretty much all that is left. Iran’s currency is collapsing against the dollar right now.

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  4. Venezuela has collapsed. It’s government is pretty much all that is left. Iran’s currency is collapsing against the dollar right now.

    Reply
  5. Yes. At first I credited that to Brian being Canadian and not well versed in US politics/history. But then I saw him blow it regarding Canadian politics too. Still. He’s come a long way. I mean, at least he acknowledges the Watermelon/Greentard scam. Years ago, he used to delete my posts whenever I dared to use such words in them.

    Reply
  6. Yes. At first I credited that to Brian being Canadian and not well versed in US politics/history. But then I saw him blow it regarding Canadian politics too. Still. He’s come a long way. I mean at least he acknowledges the Watermelon/Greentard scam. Years ago he used to delete my posts whenever I dared to use such words in them.

    Reply
  7. I will refrain from talking of Iran, but I have been following the situation in Venezuela for over a decade, and the situation the Venezuelans find themselves in is directly related to the economic mismanagement and prepotence of the late H. Chávez and particularly that of N. Maduro.

    They have been hard at work nationalising TV stations, supermarkets, drugstores, sundry consumer goods factories, and just about every kind of private business small, medium and large, and then letting them languish in administrative malady. The economic situation has been deteriorating more or less steadily since at least the last term of the late Chávez, throughout the whole span of the fairly sympathetic Obama administration.

    The only US economic policy which has palpably worsened the Venezuelan situation was the former’s pursuit of commercial shale oil cracking (abundantly covered here in NBF), which caused the oil price to fall in response in the early 2010s.

    Reply
  8. Yes. At first I credited that to Brian being Canadian and not well versed in US politics/history. But then I saw him blow it regarding Canadian politics too.

    Still. He’s come a long way. I mean, at least he acknowledges the Watermelon/Greentard scam. Years ago, he used to delete my posts whenever I dared to use such words in them.

    Reply
  9. If you want to let people to preserve their wealth from hyperinflation why not just let them use currently existing cryptocurrencies? What value add does a government like Venezuela or Iran or NK provide? None.

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  10. If you want to let people to preserve their wealth from hyperinflation why not just let them use currently existing cryptocurrencies? What value add does a government like Venezuela or Iran or NK provide? None.

    Reply
  11. The dictatorship in Venezuela and Iran…” Really Brian, you should stick to tech and get off the flag-waving American militarism Kool-Aid. It does you no credit. The misery in Venezuela and Iran (and NK) is almost entirely the result of US economic warfare. Demonization, military threats, and sanctions… like in Chile in the time of Kissinger: “Make the economy scream.” It’s all just the standard “regime change” program, and short of an actual invasion by the marines, which WILL NOT HAPPEN with Trump in the White House, the situation will continue until gradually, in the coming years, cryptos replace the dollar system. America is a dying empire, with the commercial agents of great wealth — Wall Street, City of London, Rothschild Group — trying to suppress the technological innovations that are rising to supplant their ages-long monopolistic control of global money flows. The end of the empire will be a good thing for the US, because we are still the center of tech innovation, and tech has always been the force with the greatest impact on the evolution of human culture.

    Reply
  12. The dictatorship in Venezuela and Iran…””Really Brian”” you should stick to tech and get off the flag-waving American militarism Kool-Aid. It does you no credit. The misery in Venezuela and Iran (and NK) is almost entirely the result of US economic warfare. Demonization military threats”” and sanctions… like in Chile in the time of Kissinger: “”””Make the economy scream.”””” It’s all just the standard “”””regime change”””” program”” and short of an actual invasion by the marines which WILL NOT HAPPEN with Trump in the White House the situation will continue until gradually in the coming years cryptos replace the dollar system.America is a dying empire with the commercial agents of great wealth — Wall Street City of London Rothschild Group — trying to suppress the technological innovations that are rising to supplant their ages-long monopolistic control of global money flows. The end of the empire will be a good thing for the US because we are still the center of tech innovation”” and tech has always been the force with the greatest impact on the evolution of human culture.”””

    Reply
  13. I think a collapse of Cuba’s government is more likely than a collapse of Venezuela’s government. From what I can gather, the opposition in Venezuela has been crushed so now there’s just poverty and despair with no hope for another person or party to assume power and right the ship. Cuba has been reliant on Venezuelan economic aid for decades. I doubt Venezuela will be able to maintain that aid for much longer and I don’t see either Russia or China filling the gap as doing so would just give the U.S. a justification for its military presence near both respective countries.

    Reply
  14. I think a collapse of Cuba’s government is more likely than a collapse of Venezuela’s government. From what I can gather the opposition in Venezuela has been crushed so now there’s just poverty and despair with no hope for another person or party to assume power and right the ship. Cuba has been reliant on Venezuelan economic aid for decades. I doubt Venezuela will be able to maintain that aid for much longer and I don’t see either Russia or China filling the gap as doing so would just give the U.S. a justification for its military presence near both respective countries.

    Reply
  15. No clue of what you are talking about but lots of people here predict the collapse of Iran , Venezuela and they routnely are proven wrong

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  16. No clue of what you are talking about but lots of people here predict the collapse of Iran Venezuela and they routnely are proven wrong

    Reply
  17. If you want to let people to preserve their wealth from hyperinflation why not just let them use currently existing cryptocurrencies? What value add does a government like Venezuela or Iran or NK provide? None.

    Reply
  18. Brian does tend to treat politics as more predictable than it deserves. And he (like many other people) is biased towards the flashy, showy, dramatic predictions rather than “things will keep going, people will be miserable, but nothing huge will change”. Of course sometimes the big, showy, dramatic thing DOES happen. But precisely because it is dramatic, it sticks in the memory so well, and you overlook the years and years when it was boring, incremental growth or decline.

    Reply
  19. Brian does tend to treat politics as more predictable than it deserves. And he (like many other people) is biased towards the flashy showy dramatic predictions rather than things will keep going” people will be miserable” but nothing huge will change””.Of course sometimes the big”” showy dramatic thing DOES happen. But precisely because it is dramatic it sticks in the memory so well and you overlook the years and years when it was boring”” incremental growth or decline.”””

    Reply
  20. “The dictatorship in Venezuela and Iran…”

    Really Brian, you should stick to tech and get off the flag-waving American militarism Kool-Aid. It does you no credit.

    The misery in Venezuela and Iran (and NK) is almost entirely the result of US economic warfare. Demonization, military threats, and sanctions… like in Chile in the time of Kissinger: “Make the economy scream.” It’s all just the standard “regime change” program, and short of an actual invasion by the marines, which WILL NOT HAPPEN with Trump in the White House, the situation will continue until gradually, in the coming years, cryptos replace the dollar system.

    America is a dying empire, with the commercial agents of great wealth — Wall Street, City of London, Rothschild Group — trying to suppress the technological innovations that are rising to supplant their ages-long monopolistic control of global money flows.

    The end of the empire will be a good thing for the US, because we are still the center of tech innovation, and tech has always been the force with the greatest impact on the evolution of human culture.

    Reply
  21. I think a collapse of Cuba’s government is more likely than a collapse of Venezuela’s government. From what I can gather, the opposition in Venezuela has been crushed so now there’s just poverty and despair with no hope for another person or party to assume power and right the ship. Cuba has been reliant on Venezuelan economic aid for decades. I doubt Venezuela will be able to maintain that aid for much longer and I don’t see either Russia or China filling the gap as doing so would just give the U.S. a justification for its military presence near both respective countries.

    Reply
  22. In this blog Brian wrote there would be a military coup in Venezuela by the end of this year less then 4 months to go Brian

    Reply
  23. Any currency issued by a central bank should be avoided. I wish I was able to abandon the US dollar. I wish Russia, China, Germany, Iran, and yes, even Venezuela the best of luck going off the petrodollar standard. All non barter financial transactions should be denominated in grams of gold, or silver in coins, or deposited in a non fractional reserve banking system, and transferred between accounts.

    Reply
  24. Any currency issued by a central bank should be avoided. I wish I was able to abandon the US dollar. I wish Russia China Germany Iran and yes even Venezuela the best of luck going off the petrodollar standard.All non barter financial transactions should be denominated in grams of gold or silver in coins or deposited in a non fractional reserve banking system and transferred between accounts.

    Reply
  25. Brian does tend to treat politics as more predictable than it deserves.

    And he (like many other people) is biased towards the flashy, showy, dramatic predictions rather than “things will keep going, people will be miserable, but nothing huge will change”.

    Of course sometimes the big, showy, dramatic thing DOES happen. But precisely because it is dramatic, it sticks in the memory so well, and you overlook the years and years when it was boring, incremental growth or decline.

    Reply
  26. Any currency issued by a central bank should be avoided. I wish I was able to abandon the US dollar. I wish Russia, China, Germany, Iran, and yes, even Venezuela the best of luck going off the petrodollar standard.
    All non barter financial transactions should be denominated in grams of gold, or silver in coins, or deposited in a non fractional reserve banking system, and transferred between accounts.

    Reply

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