Topic: Almost All Countries Affected by Inflation, Opportunity for Bitcoin! - page 3. (Read 482 times)

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.

Each economy is affected differently by that percentage value, 5 points above its average value in the US economy is "chaos", a value that many countries would like to have.

In the same way, the "help" that bitcoin represents is relative to that economy, on consequently, the bitcoin effect is long-term and not immediate.  And perhaps, as has been said before, bitcoin is not an antidote to governments and their bad practices, it is on the contrary a solution for the individual to gain control of their assets.

In that sense the opportunity is always for individuals.

Nothing is surprising and unexpected about inflations.


As others suggested, there is hardly a correlation between country ownership of bitcoin with inflation reduction. The country's economy is too complex for a mere Bitcoin and Gold helps reduce it. It lessens the other significant economic policy factor that contributes greatly to its own country's economic outlook. Such as infrastructure, production, labour, etc. Those things surely have greater weight concerning the inflation values since they affect economic growth in a direct manner.

I don't even consider those figures to be any kind of accurate indicator when it comes to real inflation - because I think that everyone feels inflation on their skin differently. What I want to say is that my country has inflation that is less than 10% (officially), although I have a real inflation of 30% in terms of my living expenses, so it is higher compared to the same time last year, and at least 40% and more compared to two years back.

Regarding El Salvador and their inflation, I believe it has nothing to do with investing in Bitcoin, because it is about 2500+ BTC, and I don't even know what their mining share is. That 3% inflation may be correct, or it may not be - but I am sure that the average inhabitant of that country lives no better than 2 or 3 years ago.


We should not forget that Bitcoin has its "bad" periods, and if something you invested in loses a significant part of its value compared to fiat, how will it protect it from inflation, at least when we talk about short-term periods? In the long term, there is a possibility for profit and some kind of insurance, but any country cannot do that with a few thousand BTC, it is simply too little to have a significant impact.

When you mention gold, look at the countries with the largest amount of gold and their inflation rates as well as debts in relation to GDP, and you will understand that even large gold reserves are not the solution to the problem. In addition, a few years ago there was talk of how some Italian politicians proposed to sell part of the gold and thus pay some debts, and it would then turn out that Italy mostly keeps its gold abroad, and that for any sale of the same, it should be received permission of the European Central Bank.

Italy just figured out that the country doesn't fully control its gold

Management is the only problem of inflation, when you look at the US inflation, there economy tumbled when they printed large junk of dollar bills, that was what happened when there were trying to be persuasive on everyone but do you see how they managed to reduce that figure to that value of 3.7%, this is how economy should function even when things cannot be perfect. However, there are some countries whose inflation has been on the rise since the post covid 19 time, they have literally battled inflation for months and nothing has change and that's because they are not good in managing inflation, Nigeria is just one of them.

Nevertheless, Bitcoin isn't the only solution to this crumbling economy. A country will die quickly if they out all her resources when bitcoin is crashing. An asset that is too volatile isn't a best way to kill inflation, it might even be worse if bitcoin crash as it use to when bad news happen.



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.

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.

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.

Inflation is such an unavoidable thing. And Bitcoin, on the other hand, is still not the perfect solution. Inflation is not possible with Bitcoin having a limited supply, but price volatility is still an issue if you want to pick Bitcoin as a store of value. Because of this, many countries are still not comfortable enough with choosing Bitcoin as their primary option. Also, I don't think Bitcoin is on that level yet to prevent inflation for a whole country.

Inflation could be prevented when all the civilians provide together. Simply the government holding Bitcoin does not ensure the prevention of inflation. We need to improve our economy to prevent or fight against inflation. The moment we improve ourselves, that helps the country to grow. Bitcoin preventing inflation is an individual thing. If you own it then you can improve your condition. And as everybody does not use Bitcoin, it is still not possible to improve the whole country's economy that way and prevent inflation.

Oh, I just found out and haven't continued my research in detail regarding El Salvador's currency. It's no wonder that El Salvador experiences low inflation because they use US dollars.
I admit that the US is very adept at controlling inflation, this is probably because of the USD's dominance over the entire country and even the world.

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.


My assessment may be less careful and thorough, this is because I lacked in collecting data in a short time. After I researched, there are many factors that cause inflation in a country to be low outside the context of owning gold or Bitcoin in a country. The most important factor here is actually the economic growth of a country itself, and gold and Bitcoin are only additional factors that can provide more value.

The essence of suppressing inflation, I see, is that we can hit the global market with our country's products, our country's productivity in managing its human and natural resources.

Bitcoin only solve microeconomic problems which is me, you and anyone who want to invest in Bitcoin. But not every people will interested to invest in Bitcoin, hence it's only micro.

Using US dollar as their main currency is good since it's more controlled, having own fiat currency need a good management.

If El Salvador's economy is small and weak, inflation rate should be high. El Salvador was a high crime rate and high unemployment rate, but in this year both of the crime rate and unemployment rate are keep decrease. So there's a big change by Nayib Bukele, but it's not only because of Bitcoin.

The American government has long believed in its gold reserves, it didn't just start now because should the dollar fail or anything worse happens to the economy, the gold standard will have to come in.  War fought from way back in its history books taught us this.
Bitcoin is like an alternative to the fiat, just like gold, should they be considered as a legal tender for transactions and payments.

As it is though, having a personal investment in these three aforementioned kinds of money, will ensure one has wealth and remain fluid during economic downturns of inflation, war or natural disasters.

Comparing economies with only one factor (inflation) is not the most accurate. But as for the change, we should start by trying to prevent governments from wildly printing money. That alone would significantly slow down inflation.
Although a lot of other "structures" have to change depending on the country since it is vastly different depending on the countries we are looking at.

Unlike majority of countries, El Salvador does not have a fiat currency of its own! They use US dollar. That means the government can not print money like others do hence the lower inflation rate!
The economy of El Salvador is small and weak though, hence why I say analyzing economies by looking at one factor is misleading.

I don't think so. There are a lot of reasons why inflation grows, one of which is uncapped fiat, not to mention that bitcoin itself is too small and too volatile to help battle inflation.

Again you need to expand your view when trying to analyze a complex thing such as economy.
For example take the biggest inflation rate in that list. Venezuela has printed far less amount of fiat compared to a lot of other countries including US in that list. However, they have much higher inflation rate. One of the reasons is because unlike a country like US, the Venezuelan government can not export its inflation to the rest of the world or they can't produce and sell garbage bonds to other countries to cover the government budget deficit, etc. ergo all the inflation of every printed bolivar is felt domestically.
That also means even if Venezuela had all the gold and bitcoin in the world, they still would have had the same inflation rate!

Of course, this is only one reason. As I said this is a very complex topic and I'm not an economy expert to get into all the details.

Another reason for inflation is where the money they print goes. For example when Turkey prints money, it goes into the massive budget deficit and the negative foreign reserves they have hence the 100%+ inflation rate. Or when Iran prints money it goes into covering the budget deficit the government has because of how huge it has gotten over the years hence the 40%+ inflation rate.
However if these printed moneyz went directly into the economy building it up (eg. building new industries or expanding existing ones), not only it wouldn't have increased the inflation, it could significantly decrease it even into negative inflation rate.
This is what I mean by "structures" that need to change.

If a country like El Salvador use USD, there will be no inflation but there will be no jobs too and it is because there won’t be enough USD in circulation… There isn’t enough USD because the country isn’t exporting enough goods… In these situations inflation is actually a good choice, a lesser evil because the other choice brings massive unemployment and unemployed people do stupid things. A smart government know that they should keep people busy with jobs no matter how little the pay is. An employed person gets tired after work and tired people don’t create trouble. They just want a peaceful sleep.

If we look, Many bankers and other parties around the world are whispering negative feelings towards the digital world and you are right, they (Governments) will do everything in their power to close down markets that threaten their control even on the other hand there will always be inflation control policies, such as controlling interest rates, controlling the money supply, etc. so that the public is not too exposed. But, as you said, independent efforts must also come from the community.

Bitcoin may be an additional option and El Salvador will be the answer to whether Bitcoin can play a role or not.

There are so many economic factors that contribute to the inflation rate of a country and the solutions are also multidimensional. Bitcoin can help individuals overcome the effects of inflation but for now, there is no evidence that it has led to the reduction of inflation in any country. It is possible that it can be one of the economic solutions to a country's inflation problems. I don't think that there is a strong correlation between gold reserves and inflation because there are some countries that didn't make the list of countries with the highest good reserves yet they have a relatively low inflation rate.

But governments are the main responsible party for the increase on inflation, and while there are different reasons for inflation to go up, the most powerful of all is an increase on the money supply, and the money supply is completely controlled by governments.

So we cannot hope for governments to solve this problem as they are the ones responsible for creating it, and this means that if people want to protect themselves from the negative effects of inflation then they need to find a way to do this on their own.

It is true that all countries are affected by the inflation rate; in fact, all people are facing a crisis like this when it comes to the issue of inflation. And there is also the fact that as the inflation rate increases, we have the opportunity to earn Bitcoin and other cryptocurrencies that have potential in the market as well.

I'm not an economist expert, but I really feel the inflation rate problem. If the leader of the country is good, he will be able to control it so that the people who are under him will not suffer much in a crisis like this one.

Just because the market have bounced the inflation rate could've been seen better with the countries. Just think of a situation whether there is no big movement in market value of bitcoin. In that situation surely the inflation rate will be worse than what every country is experiencing at the present. For people it is an opportunity to be on the safer side. I don't think governments could be more beneficial out of bitcoin. To my understanding governments can consider bitcoin reserve same as gold and there are few countries that already have bitcoin reserve.

I am not great in economics but just likes to watched videos related to how these countries are experiencing inflation. With I believe for these hyperinflation and countries that are experiencing it, it seems that they're on the peak and there's like no exit on it if the government won't do better. It's not going to take a few years for them to get out of it and policies done by them should be favorable to the new money coming in to them. It's not just all about the financial system that they have but also the government policies that's being implemented that affects wholly their economy. As for these countries that have already been broken, doing something new could be their hope. Investing in Bitcoin is one as it seems their reserve won't be enough anymore but the question is, do they have enough funds to do that?

Am looking at these figures and spotted Zimbabwe who have a fairly good inflation rate than most**surprisingly*... yet we all know these guys are in deep trouble to the point of their local currency being declared redundant and sanctions aren't  doing them any favours at the moment which makes them the perfect candidate to adopt crypto.

And in as much as inflation negatively affects economies, not all counties have been brought to their knees for the same reason, some its war, others natural disasters etc And for those  affected financially I believe Bitcoin can fill that void to allow the continuity in running the affairs of country.