Crypto Can Help Countries With Smaller Economies If They Take The Right Steps

in LeoFinance2 months ago

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Just an hour ago bitcoin.com wrote a story/news titled Kyrgyzstan Seizes 2,000 Cryptocurrency Mining Devices. Reading this news made me shake my head and wonder why can't some countries see the opportunities that crypto technologies present to help in growing their economies.

Kyrgyzstan is Central Asian country that used to be part of Soviet Union. It has a population of 6.6 million people. According to Wikipedia its total GDP is $35 billion, and per capita GDP is $5,470. The same source says it is 9th poorest country in former Soviet Union and 2nd poorest in Central Asia. Compared to other countries it has a small territory of land.

When I think about Crypto technologies I would think countries like Kyrgyzstan would jump in on an opportunity of the century and grow their economies.

One of the main global assets of the 20th century has been oil. If a country had oil, it could do well for its economy. Same is true in 21st century, however the focus in shifting to technologies that can harvest renewable energy.

I don't know much about this country. It doesn't seem to be an oil rich country. But it does seem like it has a good geography for investing in renewable energy. One of the great features of crypto technologies is converting energy into financial assets. Investing in renewable energy can pay off in a long run and perhaps help improving local energy infrastructures.

According to the article above law enforcement authorities in Kyrgyzstan have confiscated thousands of crypto mining machines as part of new offensive against illegal cryptocurrency mining in the country. Of course countries have their laws, and they must be enforced. However, when this technology of this century can provide an edge for countries for smaller economies, not embracing such opportunities to better their economies could become opportunities missed.

It doesn't even have to do only with mining. The crypto economy is much bigger than mining. The beauty of it is for the most part being open source technology and open for anybody to participate, even countries all over the world.

I would think those who embrace this earlier, and start creating crypto friendly environments can take the best benefits out of it.

I am not sure if this country would change its stance and take better actions in the future. I am not sure how other countries will treat crypto. But I am sure those who embrace is and take well educated and researched approach will find many benefits. The future will be the judge of who made better decisions.

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This is government oppression of the worst kind, suppressing innovation and freedom. How unsettling.
I hope the people of Kyrgyzstan will rebel against this in peaceful disobedient disgust.
Thank you for sharing, you're a very talented writer, and forward minded innovated thinker. I just subscribed to your blog.

lol, no need to rebel. But countries can take steps that will help people and the governments in a long run.

Peaceful rebellion :P
Thank you for your reply, I hope the people can find a way to counteract these unlawful take downs through some sort of legislative channel is what I mean :)

I think it's pretty crazy that any governments would reject crypto at this point, hasn't it been around long enough to prove it's sustainable as a secure asset that can help change the world for the better?

I think Crypto can support dying economies and Venezuela is one of the best examples. It's perfect for developing countries to grow at a faster pace! Recently Iran had banned crypto mining due to power cuts all over the nation.

Governments want to control everything, hence, they are discarding this new technology which could benefit their own people.

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Yes, I agree. They just need to bring in people who understand the technology and figure out ways how they can benefit their economies.

Yeah, they can do much more by understanding the tech rather than completely discarding it.

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Like you say, there's a real opportunity here to drive innovation and people will flock to countries who are more kind towards cryptocurrencies and blockchain industry in general. Ultimately it will be the countries that don't move with the times that get left behind. I hope that the people are still able to at least buy Bitcoin and can silently opt out that way.

That is a good point. At the very least they should leave people alone when it comes to buying Bitcoin or something as an investment.

That really makes you wonder. I can't help but feel that the government just doesn't understand the technology and therefore does not see the opportunity in it. Or perhaps its about oppression. Sometimes government officials in poor countries are among the few who live rich opulent lives and they may not want things to change. This mining operation may be seen as a threat to the status quo or something like that.

It could also be a short term thinking and wanting more from those mining profits as additional taxes.


Your post was promoted by @finguru

I agree with that. I live in South America and many countries in the continent are really struggling right now. I heard that a big mining company is setting shop in Argentina, so maybe that country is starting to realize the great potential of crypto.

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Mining is a good start but they can also offer services that can be settled in Bitcoin or even a part payment in Bitcoin to start building their treasury, sadly no ones really thinking that far yet so its up to individual to stack

Yes you are absolutely right. There can be services for investors, crypto friendly environments for hardware makers, crypto hubs for developers, etc. If they just bring in right people to consider this, they can come up with many projects to position themselves ahead of others.

I believe someday,everyone will embrace cryptocurrencies


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Its sad to see all the stuff about seizing people's crypto. As we know most governments are corrupt and are doing things for their own self-interests.

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But many leaders of those countries with smaller economies are not embracing cryptos


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Well said

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I wonder if anyone bought privacy coins in Kyrgyzstan in response to this...