The 'no central bank' concept in bitcoin is interesting academically to economists and people with strong opinions on the matter. IMO, it's not the most important part of bitcoin for countries like Zimbabwe or other developing economies.
(1)Bitcoin is a long way from being a steady, safe currency that solves currency instability problems. (2) I don't think it's all that different from simply using foreign currency, which is what people in countries with a failing currency do.
IMO what is interesting about bitcoin and bitcoin in developing countries in particular are its basic advantages: digital, transaction cost free cash. This may open up the door to all kinds of activities held back by the non access to financial services. Remittances, long distance commerce, saving, etc. Remember the splash microlending made? A lot of later studies (after the initial noble prizes and mass interest) found that micro-loans acted as (poor) substitutes for other basic financial services like savings or insurance. It's hard to save when everyone in your tight knit extended family is broke and owed favors. You just can't keep your penny jar tucked away. But, paying back your loan is not optional so microloans are the only way of doing big ticket purchases, even if interest rates are very high.
Financial infrastructure is important. If bitcoin (or similar) can be used to build low cost financial services available everywhere it will have made a big difference. The hyperinflation stuff is very theoretical for the near future and uncertain in the farther off future.
*Even though there doesn't tend to be a lot of talk about savings as a way out of poverty, I think that thinking back on many of the old anecdotes from now developed economies, those people credited savings as a way of making progress on their family's financial situation.
(1)Bitcoin is a long way from being a steady, safe currency that solves currency instability problems. (2) I don't think it's all that different from simply using foreign currency, which is what people in countries with a failing currency do.
IMO what is interesting about bitcoin and bitcoin in developing countries in particular are its basic advantages: digital, transaction cost free cash. This may open up the door to all kinds of activities held back by the non access to financial services. Remittances, long distance commerce, saving, etc. Remember the splash microlending made? A lot of later studies (after the initial noble prizes and mass interest) found that micro-loans acted as (poor) substitutes for other basic financial services like savings or insurance. It's hard to save when everyone in your tight knit extended family is broke and owed favors. You just can't keep your penny jar tucked away. But, paying back your loan is not optional so microloans are the only way of doing big ticket purchases, even if interest rates are very high.
Financial infrastructure is important. If bitcoin (or similar) can be used to build low cost financial services available everywhere it will have made a big difference. The hyperinflation stuff is very theoretical for the near future and uncertain in the farther off future.
Links on this page are a good reference for the academic thoughts on microfinance and financial services as development tools during the recent 3-4 surge in interest on the topic: http://www.econtalk.org/archives/2011/04/munger_on_micro.htm...
*Even though there doesn't tend to be a lot of talk about savings as a way out of poverty, I think that thinking back on many of the old anecdotes from now developed economies, those people credited savings as a way of making progress on their family's financial situation.