Almost All Countries Affected by Inflation, Opportunity for Bitcoin! - page 2.

blockman

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Quote from: Negotiation on October 30, 2023, 02:45:05 AM

Although all countries are affected by inflation it will damage the country's economy but will not have any effect on Bitcoin. Bitcoin can help improve the economy by investing in it if inflation affects the economy the suffering of middle and low income people will increase. And higher inflation can spell disaster for the entire country but it depends on the economic capacity of that country even if the price of gold reserves increases it will fall into inflation as it affects the economy controlled by the government and everything with fiat currency is damaged.

Not all countries are positive with Bitcoin and they're unlikely to invest on it and they don't see the help that it can do to its economies.

Quote from: Negotiation on October 30, 2023, 02:45:05 AM

But investing in bitcoin has nothing to do with inflation no matter how big the hurdle or why bitcoin will stay where it is. Most people are turning to bitcoin to escape the impact of the economy and further increasing the demand for bitcoin.

It has nothing to do with inflation but the global impact that's being caused by inflation has also some indirect correlation to Bitcoin. We see global issues startled by something and we see the impact on it on different markets and one of it is Bitcoin. We may like it or not, sometimes there's an impact as well to Bitcoin.

ndutndut

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Quote from: jrrsparkles on October 30, 2023, 10:05:25 AM

Inflation exists with the fiat currency all the time and rich people have known it for generations that is why they never keep their portfolio in cash but on any assets that have the potential to grow or at least that are stale when the market crashes like gold.

It is not possible to make changes if you are a middle-class person and someone who is living where inflation is getting higher and higher, but having long-term goals will eventually be the key to staying from potential traps like debts The first thing needs to concentrate is financial literacy over anything from their early stages itself.

Correct. Inflation will definitely occur every year, just varying from low to high. What is clear is that inflation has a much worse impact on society than the fall in shares or the housing market because inflation has a direct impact on people's costs of living so that people immediately feel the negative impact and at times like this saving in cash is not a smart choice.

It is important to increase financial literacy at a time when inflation is getting higher, one of which is diverting money into bitcoin investment. Even though it is DYOR, no one can predict the future 100% correctly, what can be done is trying to analyze it based on data that already exists. Bitcoin definitely passes the test against inflation. because bitcoin was built on the basis of technology. The further our eyes look, technology will continue to develop.

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Quote from: Yamane_Keto on October 30, 2023, 09:59:25 AM

The adoption of Bitcoin cannot bring about real changes for countries compared to the changes that can happen to individuals. The reason is that in the case of individuals, the economic problem can be solved with a few thousand or millions of dollars, but for countries, unless the internal economic problems and the balance of supply and demand are solved, it is not possible to build Bitcoin alone. To solve the problem, it is possible, in the best case scenario, to build a sovereign fund and invest Bitcoin in it, provided that the profits of this fund go toward development and that the government does not borrow from it.
There has been adoption of Bitcoin in El Salvador, but it does not appear to have changed as if it were done by individuals

The problem is that Bitcoin for some reason is considered by some as a "magic wand" - waved and the economy is booming ! But it's not. The idea that bitcoin has a limited emission, many people take it as a solution to the problem of inflation. But they do not realize that inflation is different, and not only because of the stupidity of the government, which simply prints new "wrappers", but also caused by real problems that can not be solved without additional emission. And this is only the "tip of the iceberg" of reasons why additional emission may be necessary or why inflationary processes occur. People's belief in "easy solution" always leads to such groundless confidence.....

pinggoki

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Quote from: crwth on October 28, 2023, 11:52:44 AM

Of course, we all know everything advantageous if you were to use Bitcoin and HODL it. It's going to be different for every country but the important thing to see if it has really an effect is that there would be more countries to adopt it. We cannot really quantify if we have so little data. If there would be somewhat of a Bitcoin standard, that would be interesting as well.

If you can convert your bitcoins first to USD and then convert it to the country's currency, I think that we're going to be the same situation which is having a good standing since USD is pretty much a big money in many countries. I would disagree with little data though, there's 10+ years worth of bitcoin history so I don't think that if we were to do a dig or delve of data, we wouldn't probably consider it little.

Inflation definitely is a big problem but it's not like it's impossible to solve, I guess if the people and the government work together while the people are enjoying the benefits of bitcoin, we might see a day where we don't have to be worried about inflation that we evacuate our money on investments like bitcoin just so we can protect ourselves from that phenomena.

Ucy

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Buying Bitcoin wouldn't help the currencies of inflation-ridden countries because they would be selling their currencies for Bitcoin whereas the opposite should be the case.
The countries should instead reduce the supply of their national currencies and increase their demand by saving them more & spending less, or by investing them in productive/profitable things. Less spending means the consumption pressure on goods and services would decrease and their prices would also decrease due to low demand for them. Better to spend the currencies on things for the production of more goods and services that are high in demand and causing inflation that typically happens when goods & services aren't enough to meet their high demand. More productivity definitely helps national currencies become valuable because increased in production of goods and services do reduce their demand pressure and helps prevent their prices from going up.

jrrsparkles

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Inflation exists with the fiat currency all the time and rich people have known it for generations that is why they never keep their portfolio in cash but on any assets that have the potential to grow or at least that are stale when the market crashes like gold.

It is not possible to make changes if you are a middle-class person and someone who is living where inflation is getting higher and higher, but having long-term goals will eventually be the key to staying from potential traps like debts The first thing needs to concentrate is financial literacy over anything from their early stages itself.

Yamane_Keto

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The adoption of Bitcoin cannot bring about real changes for countries compared to the changes that can happen to individuals. The reason is that in the case of individuals, the economic problem can be solved with a few thousand or millions of dollars, but for countries, unless the internal economic problems and the balance of supply and demand are solved, it is not possible to build Bitcoin alone. To solve the problem, it is possible, in the best case scenario, to build a sovereign fund and invest Bitcoin in it, provided that the profits of this fund go toward development and that the government does not borrow from it.
There has been adoption of Bitcoin in El Salvador, but it does not appear to have changed as if it were done by individuals

DrBeer

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Quote from: lombok on October 28, 2023, 11:19:14 AM

....

The idea that "bitcoin will save the economy" and especially from inflation is unfortunately just a dream. But nothing more than that.
Most people who promote such a concept don't really understand how the real economy and the financial system of the state works. I'll ask one question - give me an example of at least one country, where they just solved the problems by introducing bitcoin as a financial instrument of the state ? I will answer for you - there is no example and will not be. In the framework of an experiment on a small group of people - it may be a good option. But for the STATE - no. This system will not work. For starters, I recommend studying what inflation is, what causes it, what kind of inflation it is. And then think - how can bitcoin solve these problems? And you will realize the answer, which will sound like this - "bitcoin does NOT solve the problem of economy". The problem is not the monetary unit, the problem is the economy itself ....

The El Salvador story - you won't be able to point to a single mechanism for the impact of Bitcoin hoarding and mining on inflationary processes in the country. No offense, but it's true.... You can try though

Negotiation

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Although all countries are affected by inflation it will damage the country's economy but will not have any effect on Bitcoin. Bitcoin can help improve the economy by investing in it if inflation affects the economy the suffering of middle and low income people will increase. And higher inflation can spell disaster for the entire country but it depends on the economic capacity of that country even if the price of gold reserves increases it will fall into inflation as it affects the economy controlled by the government and everything with fiat currency is damaged. But investing in bitcoin has nothing to do with inflation no matter how big the hurdle or why bitcoin will stay where it is. Most people are turning to bitcoin to escape the impact of the economy and further increasing the demand for bitcoin.

flyingcarpet

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Quote from: lombok on October 28, 2023, 11:19:14 AM

However, if possible, are there opportunities such as hoarding gold and Bitcoin that can provide economic stability and reduce the inflation rate?

It may not be correct to associate Bitcoin with inflation. Bitcoin is an investment tool and if you bought it at a low price on time, you can make a profit when Bitcoin rises. Many countries are also purchasing Bitcoin and some are announcing it. Since Bitcoin is a valuable asset, states that realize its potential do not miss this opportunity. That's why they invest in Bitcoin.

Countries affected by inflation or any other situation invest in Bitcoin and hold it for a long time, waiting for it to appreciate, which causes States to make a profit from an investment instrument. This investment they make does not eliminate inflation or their plight.

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Quote from: lombok on October 28, 2023, 11:19:14 AM

If we look here, El Salvador has a relatively small inflation rate, namely 3.02 percent. We know that the country is starting to stockpile Bitcoin and mine Bitcoin at the same time.

Maybe at this time we cannot conclude that Bitcoin plays a role in suppressing inflation in this country. It takes several years of data and country consistency in adopting Bitcoin.

Just to the point, I want to hear your opinions on this.

Whether Bitcoin is able to help countries overcome inflation, at least it provides options for growing a country's investment value.

Of course, I also know that there will be several policies or efforts to reduce inflation in a country.

However, if possible, are there opportunities such as hoarding gold and Bitcoin that can provide economic stability and reduce the inflation rate?

On average, countries that experience low inflation rates have large gold reserves.

https://wisevoter.com/country-rankings/gold-reserves-by-country/#argentina

Cheers, let's discuss..

How can bitcoin save any country from high inflation levels? An asset that can be manipulated positively or negatively by whales? If country continues money printing and if it gets harder or expensive to produce the product, then Bitcoin is not going to magically save you.
First of all, let's think about what decides bitcoin's price. Imagine, there is a pool and there are 100 bitcoins in this pool. At the moment, bitcoin has zero value because there is no money in this pool. Now let's throw 100K USD dollars. So, the market supply becomes 100K USD and the value of each bitcoin is 1000 USD. Now, if we took 20K usd from the pool, the value of each bitcoin becomes 8000 USD. You see? Price is not magically blowing charts, someone has to put money and the one who takes it out from pool earlier when it's full, that will see the most benefit.

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Well, one thing can help Lebanon ....

1. Stop supplying Hamas with weapons to fight the Israelis, so that your economy can improve, because those weapons are funded by money that could have been used to save their economy.

2. Switch over to using a more stable Fiat currency, like what happened with El Salvador ....or start buying some Bitcoins to beat inflation and to prevent hyper inflation.

Money are wasted on political egos and religious wars and the citizens of those countries are the ones that suffer the most. Roll Eyes

lombok

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Quote from: pooya87 on October 29, 2023, 07:44:50 AM

El Salvador has had high inflation rates in the past even though they were using USD at that time too. The decreasing inflation rate (improving economy, decreasing crime rate, improving infrastructure, improving quality of life, decreasing unemployment, and a lot more) has a lot of other reasons that have nothing to do with using USD! It's all the works of their president who has good ideas and makes them happen.

Not to mention that there are many other countries that either use US dollar or peg their currency to the dollar. Many of them have high inflation rates like Zimbabwe (has been using USD ever since 2015) that had above 90% inflation from 2018 to 2022.

The role of the president and government is very important in suppressing inflation and growing the economy. The policies made seem to be a stimulus if I assume based on your statement.

There is one question that is currently on my mind, can the level of corruption in a government or important officials in the government have an impact on increasing inflation?

Quote from: Huppercase on October 29, 2023, 08:47:31 AM

Management is the only problem of inflation,

Your statement is correct. Maybe Bitcoin is not the right asset with its volatility as a solution to deal with inflation that could come at any time. Management is the most important source in dealing with inflation. The homework of governments in countries that have the highest inflation rates is to appoint vital government ministers who have the management ability to optimize existing resources.

Rabata

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Almost every country has been affected by the effects of inflation due to the war, but those with a strong economic structure have been spared to some extent from its effects. But it has had devastating effects on countries that are not economically prosperous. Governments of developing countries have made this bad situation worse by printing new money to meet their needs. But the worst affected are the import-dependent countries that rely on purchases for everything.

As much as possible, the central bank of any country should prepare by reviewing the economic situation in advance. The major obstacle here is the hostile position of the government of each country. The central banks of almost all the countries of the world are not able to take the proper role despite the desire due to various government regulations. They must be freed to reduce the rate of inflation.

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Quote from: lombok on October 28, 2023, 11:19:14 AM

However, if possible, are there opportunities such as hoarding gold and Bitcoin that can provide economic stability and reduce the inflation rate?

It's not exactly those commodities that can make the country stabilize on economy. Because all systems the government today use the fiat system which can be handled by the strong outside countries who can handle the central bank. Yes, AS is a strong country which can handle The dollar. Even that money don't have underlying, but because many people trust it, so in this case Dollar controls it.

So, when we talk about bitcoin, that p2p electronic system still on the fiat system today, I rarely hear that 1 BTC = 1 BTC, but I often to hear that 1 btc = $30K, 1 btc= €28K, and etc. Because of that bitcoin has not been able to control inflation even have a country that legal it as currency. Because we live in a centralization system that can control the decentralization system.

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https://tradingeconomics.com/country-list/inflation-rate-

As for most countries with inflation rates exceeding 50 percent (with the exception of Syria, which has not updated its data since 2021), I would have liked to know about the spread rates of Bitcoin and crypto. It is assumed that these countries are the ones that offer the most opportunities for Bitcoin to spread. Since there are no official statistics or studies that can be relied upon, some indicators that may be useful can be monitored.
One of the most prominent indicators available is the percentage of activity on peer-to-peer platforms (Binance, for example), as well as the percentage of attendance on crypto communication platforms.

Pierre 2

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I think no country in the world is immune to global crisis and inflation. All governments printed extraordinary amount of money at pandemic era. Just to support people that cannot work. Now it all backfired, and its still continuous. Its reason why (usd getting weaker) Bitcoin and jump in price so soon. Bitcoin and even Gold stayed in their lower range price levels compared to inflation on American dollar.

Bitstar_coin

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As an individual, yes you can get good return of investment from btc during this time of unending inflation. But as a country, I doubt much will be achieved even if the country decides to go that part. Given the limited supply of btc, and most of it is already in the hands of different people, I doubt what is left will be enough to solve any inflation issues. A country needs more than just a btc investment to fight inflation.

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Quote from: Porfirii on October 29, 2023, 07:39:48 AM

Quote from: lombok on October 29, 2023, 06:58:57 AM

Quote from: Porfirii on October 28, 2023, 12:24:40 PM

Investing in crypto in general is high risk, and Bitcoin is not much different (it is safer, but still high risk), so I wouldn't recommend to do it as a way to make sure money. But with such high interest rates, the alternative of doing nothing is proven to be much riskier.

We all know here that Bitcoin price volatility is wild. High risk = High reward. However, if you look back 10 years, Bitcoin was able to provide a large return on investment and could save inflation for some people who owned it.

We don't have to go so far in time: even nowadays, with the wild inflation some countries are suffering (can we call it hyperinflation yet? I hope we don't have to anytime soon), any asset different from fiat is safer than traditional savings. Of course, traditional investments like real estate, precious metals (until scientists don't invent a way to create cheap gold, which seems to be impossible) or bonds are much less riskier than cryptocurrencies, but in a few countries the national currency is performing worse than many shitcoins, and investing in Bitcoin would be a very reasonable, yet conservative choice.

Quite agree with what the OP has said, bitcoin was able to provide a large return on investment 10 years ago, but how about those people who lose their money with bitcoin? I don't think that would save them from the inflation anymore.

Fascinated how scientists get to make cheaper gold, I mean logically it is useless because there are secondary metals like silver that also have a huge market value. In fact, some economists are calling the silver the next top asset of the future because gold is somehow losing its numbers in terms of market circulation, so probably the next thing that people will look for to buy out is silver. With the current market condition, or should I say global condition, investing in crypto is much better than keeping your fiat.

tjtonmoy

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Quote from: Huppercase on October 29, 2023, 08:47:31 AM

When a country has too much insecurities, too much corruption, too much ethnicity,racism and religious differences they mostly used their entire resources to fight inflation instead of channeling it to other aspect of the nation. Having bitcoin alone cannot stop inflation as well, there are many things that cause inflation, the country can even decide to hold bitcoin and inflation might still be on the rise. Individually, bitcoin is good to hold but what if it has not appreciate in value when you need it, remember that inflation is measured every month, bitcoin don't grow every month.

This is exactly the point I was trying to make. Bitcoin is good and all but it is still not perfect. Very good for individual holding bitcoin. But when it comes to a country, it is not appropriate. Price volatility need to be considered first. You can't use something as a reserve if that's not usable in times of emergency. Bitcoin does not guarantee continuous growth. And for that it is difficult for countries to implement bitcoin in their economy.

I think the most important rule in bitcoin investment is to invest what we can afford to lose. A country can't involve something into bitcoin that the country rely on. So this proves that individual investment into bitcoin could be profitable and reasonable because we can afford to lose that or wait for it till it becomes profitable again. A whole country can't do that.

And for this I agree with you. Even if they hold bitcoin that doesn't ensure they won't suffer inflation. Bitcoin is not the only way of doing it. There are other option that are much effective than bitcoin.

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