Redenomination or Crypto (BCH as legal tender)

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1 year ago

Before proceeding, perhaps the thing that needs to be explained/emphasized is that the issue of change/switching is not as easy as turning the palm of the hand. Where every condition must be prepared such as laws, permits, and infrastructure, and the most important thing is the socialization and learning of something new to replace the methods that have been used for a long time.

Redenomination or simplification of the value of a country's currency without changing its exchange rate. As a means of easy subtraction of the number 0 on the currency. For example, the currency is worth 1000 to 100 without reducing the value of the existing quantity, so 1000 = 100.

This simplification aims to make it easier to calculate and it is hoped that it will lift the value of the slumped currency from the value of foreign currencies, especially the US dollar as the current world currency reference. So if someone usually brings the value of 1,000,000 currency, it is represented by redenomination with the new currency in the form of 100,000 denominations. So later the community will also benefit, where somebody can carry less the form of currency denominations in their daily lives.

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Questioning whether the conditions are effective or not, of course, is a serious and long discussion in fact. And if it is interesting from one point of view, I personally as a writer, it seems that this cannot be taken as an appropriate reference because there are people who are more competent in this area and understand more about all the conditions and needs if all of this is done.

Switch to a new type of currency called crypto. Where has the same meaning of currency but differs in terms of the order and the system that applies as well as the form of physical condition that becomes the definite form of cryptocurrency, namely digital?

On the other hand, when it comes to exchanging rate conditions, crypto is very different from fiat currency. Where the value of cryptocurrency is volatile, or uncertain. However, taking one representative example of the various cryptocurrencies that are present, crypto when referred to as exchange rates has the advantage of nomination problems compared to fiat currencies. Where the existence of a crypto nominal value is formed in the smallest digit called a bit unit, it can even be represented in a smaller reference micro bit. Where the value that applies to crypto is still 1 = 1 and has more simplification conditions that are easier than the current conventional currency.

For example, the comparison between the rupiah currency and one of the cryptocurrencies, namely BitcoinCash. Where at the time of this writing I wrote $1= Rp15,573.35, so BCH exchange rate against rupiah 1 BCH = Rp. 1,602,563.67. This means that if redone is 1 BCH = Rp. 160,205.63.

Rate @ $1: Rp 15,573.35 : 0.0062 BCH 

In real-world use, 1 cup of coffee is valued at Rp. 10,000.00/0.00622564 BCH/Rp. 1000.00 (redenomination).

From this point of view, it seems that nominalization seems to be better for cryptocurrencies because crypto nominations are still very much less (smaller) than nominations for fiat currencies. Plus the condition of the exchange rate against the prevailing currency.

At this point, it can be said unilaterally that crypto is actually better than the issue of nominations and also the prevailing value. I use the emphasis on the word unilateral so that it is not viewed from my personal point of view, and also matters of other factors such as infrastructure, licensing, laws, and laws that apply in religion. But before I add it, I hope it's not up for debate but maybe it can be a reference and further studied by experts who understand each field. When viewed from other infrastructure factors, cryptocurrencies are more efficient than fiat currencies where if the reason for network problems is the need for cryptocurrencies, it can be used with the paper wallet method for uses that do not support adequate infrastructure. In terms of the law in the realm of economics and religion, the requirements for cryptocurrencies are more fulfilled, such as having value, being limited, and having been recognized by the public. In terms of durability, speed, and convenience, it seems that it doesn't need to be explained where crypto conditions are certainly superior to the applicable currency.

In conclusion, between redenomination and crypto, it seems that in this review, it seems that I am very much in favor of crypto as a better choice than the redenomination of fiat currency. However, as I emphasized, it is only my view of the word better which can be interpreted as not the best of the two, because of the limitations of knowledge and conditions of understanding legal issues in the order of a country.


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1 year ago