According to bitcoincharts.com, around the world, there are currently 14 different currencies being traded for Bitcoin:
AUD - Australian Dollars
BGN - Bulgarian Lev
BRL - Brazilian Real
CAD - Canadian Dollars
CLP - Chilean Pesos
CNY - Chinese Yuan
EUR - Euros
GBP - British Pounds
INR - Indian Rupees
JPY - Japanese Yen
PLN - Polish Zloty
RUB - Russian Rubles
SAR - Saudi Arabian Riyals
USD - United States Dollars
Though many "financial experts" are quick to dismiss Bitcoin, the fact of the matter is, the infrastructure hasn't yet been constructed to take advantage of one of the biggest benefits of using Bitcoin: moving money internationally for next-to-nothing.
For the thousands of Filipino workers in Canada who send money home to support their families, a huge percentage of the money they earn is lost to transaction fees. A quick look at Western Union's fees, for example, shows that it would cost someone 10 CAD to send 100 CAD to the Philippines - an instant 10% loss!
In 2007, Mexicans sent 24 Billion USD back to Mexico.
Unfortunately for both Mexicans and Filipinos, there are no Bitcoin exchanges in their local currencies, so they're stuck paying immense fees to send money home.
Even if currencies are deposited into a Bitcoin exchange, converted to Bitcoins, sent to another exchange, and converted to another currency, the fees we're seeing charged by the major Bitcoin exchanges are a small fraction of the 10% charged by Western Union in the example above.
The very recent announcement of a Kenyan Bitcoin exchange is a signal to the world that a need exists in the developing world for a medium of exchange like Bitcoin. How many Kenyans work in the United States or Europe that have a hard time sending money home?
How far away are we from seeing Filipino and Mexican exchanges? I guarantee we'll see both in less than a year. Mexicans are searching for Bitcoin. Filipinos are searching for Bitcoin. The need is there. The demand is coming.
Give Bitcoin a chance to lay down some infrastructure, come back in a year, then check the value of a Bitcoin. Adios!
Both regions can benefit from the trading platform. Transaction fees definitely are a big loss.
ReplyDeleteIt's even conceivable that bitcoins could become more valuable than gold due to the utility derived from being a digital, rather than physical, medium. I have to agree with you that Mexicans and Filipinos are stuck paying immense fees to send money home.
ReplyDeleteoption trading
There is a big possibility for the bitcoins to increase their value due to the advent of technology. I just hope that the other countries like the Philippines and Mexico that use Peso as the currency, will be able to join the roster of the countries that are enjoying the benefits of having bitcoins.
ReplyDeletestock options trading
Very interesting! I would love to learn more about bitcoins trading.
ReplyDeleteOptions Trading Strategies
Does any one know if a Philippines exchange has formed? I would like to transfer Bit coin into Philippines Pesos to pay our team of more than 100.
ReplyDelete- James