Bitcoin is a digital currency; “bitcoinia” is a place that accepts bitcoins. The website Bitcoinia.org invents a fictional country called Bitcoinia.
“Bitcoinia” was popularized by Ryan Avent’s article “Inside the Bitcoin economy” in the April 11. 2013 issue of The Economist. Avent wrote:
“Now in Bitcoinia (as we might call the Bitcoin economy) that means volatility currently matters very much.”
Bitcoin (BTC) is a digital currency first described in a 2008 paper by pseudonymous developer Satoshi Nakamoto, who called it a peer-to-peer, electronic cash system. Bitcoin creation and transfer is based on an open source cryptographic protocol and is not managed by any central authority. Each bitcoin is subdivided into 100 million smaller units called satoshis, defined by eight decimal places. Bitcoins can be transferred through a computer or smartphone without an intermediate financial institution.
Welcome to Bitcoinia
Bitcoinia is a beautiful country with high mountains, deep forests, rushing streams and wide rivers flowing into the sea.
It has fine sandy beaches and a temperate to warm climate which makes it a favoured destination for tourists.
With English as its national language, a wealth of natural resources and highly educated citizens, Bitcoina enjoys one of the highest standards of living in the world.
Inside the Bitcoin economy
Apr 11th 2013, 19:48 by R.A. (Ryan Avent) | WASHINGTON
Now in Bitcoinia (as we might call the Bitcoin economy) that means volatility currently matters very much.
Washington (DC) Post—Wonkblog
Yes, Bitcoin is volatile. But it’s still got defenders.
Posted by Brad Plumer on April 11, 2013 at 4:44 pm
And, finally, Ryan Avent imagines a future in which Bitcoin flourishes and volatility against the dollar is no longer a major concern:
The more transactions there are in Bitcoinia, the more entrepreneurs will want to hedge their exposure to foreign exchange volatility by paying suppliers or employees in the same currency they’re accepting as payment. And Bitcoin wage payments reinforce the demand for goods and services that can be purchased with Bitcoins. The greater the ability one has to buy and sell what one needs exclusively within Bitcoinia, the less foreign-exchange volatility matters.
Whether Bitcoinia actually attains that critical mass is very much an open question, and I certainly have my doubts…. One might recommend a bit of macroeconomic management to create enough to stability to allow the critical mass to build, but centralised management is very much what Bitcoin is not about. Sceptical as Bitcoinistas may be of the value of central banking, it has developed as it has for a very, very good reason.
What airlines fly to Bitcoinia? RT @EconEconomics: Inside the Bitcoin economy http://econ.st/10XfNyn
5:18 AM - 13 Apr 13
The LewRockwell.com Blog
All Hail Berlin, Capital of Bitcoinia
Posted by Lew Rockwell on April 28, 2013 02:41 PM
But Max Keiser worries that predatory governments could shut down all the exchanges.
New York City • Banking/Finance/Insurance • Monday, April 29, 2013 • Permalink