Cambodia's dollarization; Help or handicap ?

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StroppyChops
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Re: Cambodia's dollarization; Help or handicap ?

Post by StroppyChops » Sat Jun 17, 2017 1:44 pm

vladimir wrote:
Sat Jun 17, 2017 12:36 pm
juansweetpotato wrote:
Thu Jun 15, 2017 5:49 am
Better start thinking of pulling your money out of MFIs, and putting it into crypto currency. I heard a rumour that the CNRP intend to have foreign investors paid in 100 riel notes. :stir:
And only the small matter of winning an election stands in their way...
No problem - the best election outcome money can buy!
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Re: Cambodia's dollarization; Help or handicap ?

Post by AE86 » Sat Jun 17, 2017 1:53 pm

Truthfully, I'm nervous for the Cambodian economy because I see the dollar heading for a massive crash in the near future. On the other hand I have zero faith in the Cambodian central bank not farking up their monetary system in a very short time frame.

So on that note, although I doubt it will ever fly with the people, I think if the riel was pegged to the Chinese Yuan which has a much stronger economy backing it (although in a bubble at the moment), the future would look at lot brighter.

So really, just prepare for the worst I suppose.
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Re: Cambodia's dollarization; Help or handicap ?

Post by eriksank » Sat Jun 17, 2017 2:33 pm

AE86 wrote:
Sat Jun 17, 2017 1:53 pm
Truthfully, I'm nervous for the Cambodian economy because I see the dollar heading for a massive crash in the near future. So really, just prepare for the worst I suppose.
Agreed. Pressure is growing in the USA to cancel entire swaths of the constitution on grounds of better policing the internet. At the same time, Donald Trump is really not in a position to propose that kind of things. We are heading for turmoil.
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Re: Cambodia's dollarization; Help or handicap ?

Post by juansweetpotato » Sat Jun 17, 2017 3:18 pm

AE86 wrote:
Sat Jun 17, 2017 1:53 pm
Truthfully, I'm nervous for the Cambodian economy because I see the dollar heading for a massive crash in the near future. On the other hand I have zero faith in the Cambodian central bank not farking up their monetary system in a very short time frame.

So on that note, although I doubt it will ever fly with the people, I think if the riel was pegged to the Chinese Yuan which has a much stronger economy backing it (although in a bubble at the moment), the future would look at lot brighter.

So really, just prepare for the worst I suppose.
Spot on I would say, or crypto currency. Lol
Did you know that 95% of Bitcoin is held by the Chinese?
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Re: Cambodia's dollarization; Help or handicap ?

Post by StroppyChops » Sat Jun 17, 2017 3:25 pm

juansweetpotato wrote:
Sat Jun 17, 2017 3:18 pm
Did you know that 95% of Bitcoin is held by the Chinese?
I did not know that. Not sure if that's a positive or negative.
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Re: Cambodia's dollarization; Help or handicap ?

Post by eriksank » Sat Jun 17, 2017 6:22 pm

juansweetpotato wrote:
Sat Jun 17, 2017 3:18 pm
Did you know that 95% of Bitcoin is held by the Chinese?
Strong Chinese participation used to be a tremendous piece of extra protection, with a majority of the miners safely sitting behind the Great Chinese Firewall. The point is moot now. Bitcoin dominance has shrunk below 39%. It is no longer a realistic threat that a state actor would seek to shut down lots of miners and also buy truckloads of ASIC equipment in order to stage a 51% attack. When the crypto market cap was small, they did not care enough, and now that it is too big, it is no longer possible. So, it was never going to happen ...
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Re: Cambodia's dollarization; Help or handicap ?

Post by timmydownawell » Sat Jun 17, 2017 10:26 pm

Well I don't know, you would think if the US dollar drops, then I would get more bang for my Australian buck... except when the USD drops, the AUD gets nervous and drops as well. And then I see various international banks saying the AUD could potentially drop as low as USD0.50 (which would be a disaster for me). I had thought having an idiot for president would have sent the USD tumbling.

How stable would the Riel be if it was the only currency here? I'm not sure it would be advantageous. It could end up a basket case and lead to rampant inflation. It's bad enough with $1=4000 Riel, the Dong and Rupiah are even worse. Too many zeroes!
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Re: Cambodia's dollarization; Help or handicap ?

Post by eriksank » Sat Jun 17, 2017 11:11 pm

timmydownawell wrote:
Sat Jun 17, 2017 10:26 pm
I had thought having an idiot for president would have sent the USD tumbling.
Trump has not been able to do anything worth mentioning. He faces obstruction all over. The entire government apparatus in the US seems to discovered a new hobby: to obstruct the Donald! ;-)
timmydownawell wrote:
Sat Jun 17, 2017 10:26 pm
How stable would the Riel be if it was the only currency here? I'm not sure it would be advantageous. It could end up a basket case and lead to rampant inflation. It's bad enough with $1=4000 Riel, the Dong and Rupiah are even worse. Too many zeroes!
Since my expenses here would then be exclusively in riel, I would not mind rampant inflation in the riel. Just don't exchange too much hard currency in one go ... Vietnam and Indonesia with their mickey mouse currencies are cheaper places than Cambodia ...
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Re: Cambodia's dollarization; Help or handicap ?

Post by AE86 » Sat Jun 17, 2017 11:50 pm

eriksank wrote:
Sat Jun 17, 2017 11:11 pm
Vietnam and Indonesia with their mickey mouse currencies are cheaper places than Cambodia ...
I know Vietnam has been devaluing their currency like China has in the past, but I the prices are more because Vietnam and Indonesian have a lot more locally produced goods and functioning services.
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Re: Cambodia's dollarization; Help or handicap ?

Post by juansweetpotato » Sun Jun 18, 2017 1:37 am

Luigi wrote:
Wed Jun 14, 2017 6:26 pm
juansweetpotato wrote:
Wed Jun 14, 2017 11:30 am
Hello, Eric's posting in the nude again.
I'm not sure about all that, but I do agree with the possibility of the banks going down. Again.

It really is amazing how fast crypto currency has taken a large bite out of the traditional money markets - in just nine years.
Even some banks have been forced into dealing with them. 2 to 3% on traditional transaction methods compared with 0 to 1% on crypto currency. People are getting in there fast. The US government is worried, and not about it being used for crime or war. Lol

"Even some banks have been forced into dealing with them.

Do tell. What banks & how are they ''dealing'' with them. As an exchange
Evidence of central banks worrying?
Details please. Very interesting.
As promised. This s a lot better than the other article I was reading.
This is from 2014

Could Bitcoin Surpass Google's $384 Billion Market Cap?
Just how big a financial opportunity is Bitcoin?

Recently, Wall Street has been starting to ask that very question, paying more and more attention to the upstart alternative currency.

The first analysis by a registered broker dealer which attempted to value bitcoin's worth was published on 1 December by Wedbush Securities.

While Los Angeles-based Wedbush is a respected securities firm, it doesn't count itself among the first-tier of investment banks, or the ‘bulge bracket’ as its known on Wall Street. The Wedbush research report contained some novel analysis and perspective, but it was also ‘light’ in that it weighed in at just one and a half pages.

In short, it was not yet clear just how interested Wall Street was in Bitcoin.

However, when bulge bracket member Bank of America Merrill Lynch (BAML) and its well-regarded currency analyst David Woo followed Wedbush’s lead with a detailed 11-page report and valuation analysis, it became clear that Wall Street was taking the cryptocurrency seriously.

Bitcoin’s price is only part of what interests Wall Street

What grabbed the most headlines from both the Wedbush and BAML research reports was the bitcoin price analysis offered by the competing houses.

“While it is tempting to focus on the largest companies which bitcoin has the opportunity to disrupt, smaller operators should also fear bitcoin.”

David Woo and his team at BAML gave a maximum fair value estimate for Bitcoin of $1,300. Gil Luria and Aaron Turner of Webush shied away from providing a specific number, instead suggesting a potential 10x-100x range above its value at the time of their report.

What grabbed fewer headlines, but was arguably more interesting, were the comments in each report about the real opportunity Bitcoin presents to disrupt the existing financial services industry.

In the words of Luria and Turner: “the long-term threat posed by this technology is mostly to the payment networks (V, MA) and technology facilitators such as CIW, in our opinion. We believe [cryptocurrency] technology may have advantages in introducing new capabilities and a superior point-to-point cost structure to the current hub-and-spoke branded networks.”

The natural follow-on question from this is just how big are the payment networks and technology facilitators?

Measuring Bitcoin’s disruption potential

Table 1 below presents a list of companies in four sectors which Bitcoin and its surrounding ecosystem touch – payment processors, payment hardware, bank software, and money transfer and ATM outsourcing.

Table 1: Bitcoin Ecosystem - Comparable Company Market Caps ($s millions)

table1-marketcap-payment-industry
Sources: Data as of January 10, 2014. CoinDesk, Wedbush Securities

Image

The first point worth highlighting is that the combined total market capitalization for the basket of companies in Table 1 was $314bn as of 10th January, 2014. This is a significant figure, and not so far off from the current market capitalization of Google ($384bn).

In short, if you were simply wondering why venture capitalists are interested in investing in Bitcoin then you need not look any further than this number.

(Note: An important feature to observe about the basket of companies presented above is that it is largely dominated by North American firms. While many of the above companies are global leaders, the basket is missing European and Asian firms due to data availability constraints. This analysis may thus materially skew downwards the total global market capitalization for these sectors of the financial services industry.)

Of the $314bn in total market cap, it is also interesting to note that $210bn in market cap (or two-thirds of the total for this basket of companies) is made up by just two firms: Visa and Mastercard. The value which is concentrated in these two payment processors speaks volumes about why venture capitalists have focused their largest investments to date in bitcoin processors such as Coinbase
.

Full article
http://www.coindesk.com/could-bitcoin-s ... arket-cap/
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