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

Anyone who can make his assets work hard for him is pretty smart and very lucky, as I imagine it would be for a company owner or shop owner with lots of doors that keep opening. So that he continues to earn income every year without having to work harder and for example the investment you said is actually not wrong to do in inflationary conditions because it can also be relied upon as an effort to fight the inflation that is currently occurring.

An intelligent generation is a generation that is beneficial to the living environment of many people, not just to themselves. Because a generation that can work intelligently and can teach other people who are still laypeople to follow in the footsteps of the intelligent generation is something that is quite beneficial for people's lives. Because a generation like that will always be appreciated more by everyone because they can provide assistance through what they have, especially through modern science.

Inflation certainly cannot be fought because this will definitely happen, especially now that there are many early signs starting from the pandemic, the Ukrainian war and now the war in the Middle East which will definitely have an impact on the world economy. If you are in a situation like this then Bitcoin will be your everything savior. Winning bitcoin will make our lives more comfortable because we need to think about inflation or a downturn in the world economy because bitcoin is a surefire way to avoid it all. Bitcoin is for the future and money is free from any control including the government.

I just follow my heart, because I'm sure there will come a time when all humans will experience difficulties except for people who have bitcoin in their hands. And Alhamdulillah, now I am starting to prepare it all starting from the DCA strategy and from the income from the signature campaign.

And that is what makes bitcoin such a powerful tool, without bitcoin or any store of value people are at complete mercy of the decisions politicians may take regarding the economy.

But once you have safely stored your wealth their actions have less repercussions on your everyday life, and you can be sure politicians hate this and if things get really out of control where you live then all kind of laws and measures could be taken to try to get people to keep using their fiat currency.

As someone from one of the nations at the top of the list, bitcoin has certainly made my life easier without a doubt. While everyone here got poorer, I was lucky enough to do fine, and that is not a bad thing. I would say its not just about investing into bitcoin, I also work and earn bitcoin as well and I enjoy that, I think its a good thing and should keep being very important for the long term. I understand life is not that simple for most people but for me it is as simple as it gets. I hope that we could keep this going, working for crypto is great, its difficult and hard work but its a profitable and good income business. Investing into bitcoin is also a great feeling for me too, I really like it.

The value of Bitcoin indeed tends to be more volatile and it has more potential to give you higher returns in the long term, but when it's about inflation, the value of your money or assets don't need to increase to save you from inflation but it can do just good if your wealth isn't losing value in times of high inflation and gold does that very well. Both Bitcoin and gold have their advantages and disadvantages when we talk about investing and holding them for the long term.

The value of gold usually stays stable and even if it moves, the movements aren't that significant to make someone worried, and it tends to move up and gain value in the long run. On the other hand, Bitcoin tends to be extremely volatile and unpredictable, it might be valued at $30k today and drop to $20k in a week or even in a month which is a downside of holding Bitcoin during high inflation.

Well, you both are right, for as things currently stands, bitcoin is the only available and most reliable solution to inflation as long as I am concerned, I know that there are actually some potential or possible solutions or decisions the government can  take to reduce or maybe completely eradicate inflation in their country, but just like LittleBitFunny had said, such solutions or decisions are not or won't be so easy to implement, most especially if not done from the very beginning of the system and maintained along the way, it's almost impossible to implement any of such solution or decision in the middle of an already running system and have it work without negatively impacting the live and we'll being of the citizens of the country involved.

This is exactly what the Nigerian government tried to do In late 2022 and beginning of 2023, where they banned the use of old naira notes and printed new ones, but the new ones they printed was so short in supply and scarcity of naira notes immediately hit the country and this affected a lot of business and cost many their jobs.

Bitcoin to me, is and remain the only possible solution to inflation, this is why we all must not fail to keep our money in bitcoin, and only keep fiat we are ready to spend, for fiat will continue to value and purchasing power, this is not a curse, it's the way fiat has been designed to be from the very beginning.

Yes that's right. Bitcoin is the right way to overcome any problems if inflation occurs. So to face inflation, of course we need to be financially literate by investing in Bitcoin, where we don't need to work hard for assets, but assets work hard for us.

We must be a smart and intelligent generation to share knowledge with lay people about finance by investing in bitcoin. Don't want to continue to be fooled by an enslaving system into continuing to work hard without knowing that they are being played in the competition of capitalism.

Bitcoin helps macro economy and not only the micro economy. If bitcoin is helping El Salvador economy to reduce inflation then it automatically helps the macro economy level of the country. Then as you said, it helps the micro Economy more for now because the global adoption is still low. Inflation is done by human and it control by the world powers. There are different factors making things to increase in the world. But countries differ.

And the general element that causes inflation is US dollar. In my country the US dollar has a very big influence for the price is of things. Even local products depends on US dollar because when you sell your local products, you will used the money to buy foreign products so they have to sell it higher to match the products.

They are just overhype on bitcoin then think about that its more faster for them to earn money here if they invest on it. But they didn't even consider the risk that's why they need to realize that bitcoin investment is so risky due to its unpredictable volatility. Many should consider to learn first bitcoin as a whole and don't do any shortcut since most of the time we fail on our investment if we don't know how to come up with scenarios happening in the market.

But if they can learn how to trade with bitcoins for sure their participation on its ecosystem will really be rewarding knowing that how huge the potential of bitcoin since every movement it can get then its a possible profit to get especially when they learn a lot for studying it and get an idea on when to accumulate and when to sell.

Local currencies belonging to countries and their central banks don't have any maximum supply nor do they have any upper limits for printing more of them today. Although in previous years local currencies were printed by the central banks depending on the gold reserves of the countries, unfortunately, this isn't the case today and the printing of local currencies by the central banks continues without slowing down without any reserves. Naturally, due to the increase in supply in the market, local currencies lose value and this causes inflation. Unfortunately, since there is no centralization in Bitcoin and there is a maximum supply, it isn't possible to increase the maximum supply by any institution or organization. This causes almost negligible inflation for Bitcoin.

To comment, excluding technology, areas of use, ease of use and all other factors, the only reason for the inflation difference between local currencies and Bitcoin is the maximum supply amount. Since the more a product is, the less valuable its price is, local currencies, whose supply increases in the market day by day are constantly defeated by inflation but Bitcoin is almost unaffected by this situation due to its maximum supply.

Governments that took on the task of distributing money to the people confined to their homes during the pandemic period began to print more local currencies without any reserves in order to meet this and unfortunately, due to the subsequent economic conditions they couldn't control this. This caused local currencies to lose value and succumb to inflation.

Some are true here but Bitcoin can’t guarantee any profit at all because your profit will always depend on your strategy and on how you approach the market. There’s also no proof that Bitcoin solves the problem of inflation because still many are suffering from this despite of adapting Bitcoin. Well, this market serves as an alternative and yeah the risk are high that’s why this can be rewarding too.

We know that using and holding Bitcoin is the most convenient and profitable. This Bitcoin is used in every country and just to enjoy the benefits of completing economic transactions. Countries that have not made Bitcoin legal also trade Bitcoin for security. Also USD is best for managing inflation, and what I think Bitcoin does better for inflation. So Bitcoin helps a lot in overcoming the economic rate of inflation in different countries and it solves all the inflationary problems.

Bitcoin is not ready for governments around the world to start pouring money in this market, not that they want to do it anyway.

However while this is the case for governments, a completely different scenario is the one that presents itself when it comes to individuals, if someone has some spare money they can do a lot worse than to invest in bitcoin, as not only bitcoin is a great asset in which to invest, now we are getting closer to the halving and to the bull run, and once that happens whatever money they invest will increase significantly during the next months and years.

Buying Bitcoin depends on the individual, even though we are still in a time when the inflation situation in our country is not good. But still, from another angle, even if we are facing a crisis due to inflation, Bitcoin will still help us so that we can survive by getting profit from trading skills.

This is just my understanding: because the price increase is given, we can't stop it, so what we have to do since we can't stop it is better to prepare or face it by having a solution in this situation in our country where we live.

Bitcoin hoarding or investments in Bitcoin on a country level wouldn't really help reduce inflation within the country because Bitcoin doesn't always keep going up and the rate of inflation can only be reduced if the country gets a higher income from whatever investments they are making so that they can use that money on their country's import and export or any other sector that might help them reduce the inflation to at least some level.

Bitcoin is a volatile asset, and a country can obviously not risk a great amount by investing it in Bitcoin just to see that their investment got devalued after a short period of time after they made the investment just because the market crashed and we all know that it happens in every cycle and the country can obviously not wait for a whole cycle to finish before they sell the assets.

to combat inflation simply investing in bitcoin that only if we are not in bearish, many people still think of combating the inflation using gold which honestly quite effective but only works for that not increasing the capital for profit but just keeping the value of wealth stable and not getting eaten by the inflation.
in my opinion, bitcoin is still the best among the best investment out there, the rate of returns if someone is good at analysing the market and making best entry would be tremendous.
its unlike gold that just grows very slowly, bitcoin is growing few fold of its ath in previous bullrun.
thats what I think the main reason why bitcoin is most effective to go against the inflation, because the yield is just better.

You have a point in what you said. Even so, no matter how much the rate was raised, there is a strong reason why the government did it. Maybe if they don't do that, the country's economy could collapse completely if they become negligent toward the government, and that is a bigger problem for sure.

Inflation is also a problem in our country, but in spite of everything that is like this situation, our president is still able to properly manage the interest rate of inflation. That's why everything is still under control, if I look at it so far.

Well this makes sense, a country's economy is very complex. And bitcoin is only a small part and is also influenced by the existing economic system. I say this not because I changed my view from the thread I made, but I am here to learn and observe from other people's perspectives which can enlighten my thoughts about inflation and Bitcoin in it.


In the case of El Salvador regarding the legalization of Bitcoin, we don't really know whether this adoption aims to ensure that every citizen uses Bitcoin as payment for daily activities, including salary payments? Or the country makes purchases and holds or even mines as a hedge reserve. This remains a question, while the head of state also calls on his government to buy Bitcoin.


From your statement, I conclude that what BRICS is doing now is the first step in fighting inflation for each of its member countries. Correct? Therefore, this could be a good solution for every country that joins as a member. No wonder many countries are now interested and joining BRICS. There, state money is highly respected because the system is that country A, which wants to buy goods from country B, must pay with country B's currency. This makes that country's money experience increased demand and circulate widely. Unlike today, which is dominated by the USD and other countries' currencies are experiencing pressure on the dollar.

Bitcoin is a panacea to cure all diseases such as eradicating poverty, reducing unemployment, and saving a country's currency...I am waiting to see if people will nominate bitcoin to solve wars and bring peace to the world or not  .

Indeed, there are many causes of inflation, the uncontrolled printing of money by the Government is just a part of the iceberg, many people do not understand and can only blame the government's money printing. Simply put, managing and balancing supply and demand of an economy with billions of people is not easy. It's not as simple as us sitting here and criticizing everything.

Changing currencies won't save the economy; instead, the whole banking system needs to be rethought. Yes, I agree that people who praise Bitcoin as the savior of all time might not understand how complicated state economies are. But wouldn't it be too simple to dismiss Bitcoin's promise based on what we know now? Financial systems change over time, so it's not fair to just write Bitcoin off right away

El Salvador is still a new project, so not all of its effects have been seen yet. The claim isn't that Bitcoin will get rid of inflation; rather, it's that it will give economies that are struggling another option. It's a choice, a hedge, and one of many tools you can use in finance. It could be seen as hasty to dismiss it without giving it a full investigation and understanding of its long-term effects

It's true, and I believe in the topic you raised: when the dollar falls, that's really an opportunity for Bitcoin to increase its price value in the market. And when the dollar rises in the market, the value of bitcoin falls. Because those two cannot go in the same direction.

That's what I noticed about that matter, actually. And we also know that the dollar rate also causes the inflation rate to increase in the market in all countries that experience it. And Bitcoin has never been the cause of the inflation rate problem to be honest.

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.

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.

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.

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.....

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.

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.

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.

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 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

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.

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.

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.

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.   

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?


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.

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.

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.

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.

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.

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.

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.

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.

You raise a good point because the inflation of some countries does not depend only on the funds they are keeping in their reserves. There is no doubt that one having more gold in reserves will face less inflation than one having less gold in reserves, but that's applicable only in the context of gold. Talking about BTC, we cannot surely say that BTC is the main reason behind El Salvador's inflation rate.

Inflation rates depend on many other things, like the imports and exports of the country, the product level, and the disasters that occur in the country. A country also faces huge inflation if the government is corrupt, like in the recent thread created where the OP was showing that Nigeria's inflation is increasing, and in that thread, many locals said the main reason is the corrupt leaders. And I very much agree with this reason.

We are also facing the same problem of corrupt leaders, but we can't do anything about it openly. Besides this, I will say the current war does have some impact on the BTC price because people who have time to think about their money in war might think to covert it in some form where it can be preserved from the destruction of the war. And they will put money in BTC, but they can put money in gold too. But if you invest in BTC, the price will increase.

Absolutely nothing to do with Bitcoin!

This is Salvador

This is neighboring Guatemala

This is far better faring Panama


Now, why don't you do other countries that were supposed to have high adoption rates and see if there is any correlation?
Like you know, Turkey for example, with about 45% of its population owning crypto?  


I wish people would start to understand that what's good for your personal finances is not immediately good at a country level maybe actually worse!
Example:
a) You exchange 10 000 Turkish lira to Bitcoin, you get your coins, and nothing extraordinary happens
b) 100 million people exchange 10,000 Turkish lira to Bitcoin, and suddenly there is a sell order of $33 billion worth of turkish lira on the market that nobody wants, what do you think that will do to the value of the currency? Drop it like a stone, making the previous buys impossible and turning the lira into dust! Weimar Republic? Sounds a bell?

Most of these countries are having some political or economic crisis which is a reason for the inflation. The central bank has the ability to control the circulating supply of fiat currencies but in all these countries the government is using the central bank to print more money so that they can buy dollars from the market with their newly printed money and pay interest. If the central bank could work as an independent organization without any influence from the government the situation wouldn't be that bad.

Sometimes inflation isn't all bad as it encourages people to spend their money which increases a country's GDP. Also there is no point in holding fiat currencies which are losing their value gradually but that doesn't mean everybody will buy bitcoin with their fiat currencies. However i don't think bitcoin needs an opportunity to be recognized globally and its real utility will come from its adoption which is not happening as it is supposed to. Nevertheless we are getting more people onboard but bitcoin's only use case right now is as a store of value which is good but we need a real utility in our society for bitcoin to be a world currency.

You started a great topic dear, I did not come to think to compare the countries that adopted BTC legal tender with the countries that did not. That's a good comparison but your statement that High Gold or BTC (more assets) are the sole reason for the decrement in inflation is wrong. Because we (Pakistan) don't have high reserves of Gold, and we don't even accept BTC instead we have banned it. But our inflation rate decreased from 31.44 to 27.38. That's quite the opposite of what you are trying to imply here. But I got your point.

Bitcoin no doubt is the best hedge against inflation and we can store our money in it for a longer period of time without losing any penny. And it has been proved. But, talking about El-Salvador, they bought BTC and accepted it as a legal tender when BTC was around $50k means, they entered the market when it was already high. They are already at a loss but as for now market is going up so the comparison looks odd because they are to get some good improvements that are obvious.

And BTC doesn't have to care about countries' inflation, BTC doesn't need the attention of countries or entities (technically it does but hypothetically speaking) it doesn't, instead we need BTC.  

If you spend your money, you lose it. If you save it, due to inflation, you also lose it. It is sad, but that's reality nowadays. In a country with a not so high inflation (not even in the list), a friend of mine is saving to buy a house, at a slower pace than the rise of prices, and the clock keeps ticking. I don't want to even think how Venezuelan and Argentinian citizens must feel.

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.

Perhaps the op was unaware or didn't factor that in, but El Salvador's fiat currency is the USD. The USD is pretty good at managing inflation, and that has a major impact, so I think El Salvador's inflation rate is probably due to that rather than due to Bitcoin. Clearly, it's not just that, as the inflation rate for the USA is different, but I just think it probably has a much higher impact than Bitcoin does, as much as we'd like Bitcoin to have a high positive impact. El Salvador's actually only keeping a fraction of its budget in Bitcoin, as even they, with all of that pro-Bitcoin stuff, understand the risks.

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.

I don't believe there's much correlation between El Salvador's Bitcoin adoption and the relatively low inflation rate. There are plenty of other countries that are in a similar position without having adopted Bitcoin; see Kosovo, Belarus, and a few other countries on the Asian or African continent. On top of that, I remember reading an article a few months ago that said Bitcoin transactions are still not that common and its usage is pretty low. So far, El Salvador's experiment has little to show, as a large number of people only took advantage of the early signup incentives and gave up after a short time period, while it cost El Salvador millions in infrastructure.

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

*I took the data from tradingeconomics.com

Almost all countries in the world experience inflation. From the data that I have seen, the largest inflation was occupied by Venezuela at 318%, followed by Lebanon. As we can see for ourselves in the table above or visit the tradingeconomics.com website to find out the details. This is really worrying, in essence all countries are threatened and have the opportunity that their currency will become increasingly worthless due to this inflation.

Is there a way to deal with this if the financial system remains like this? Is it too late to change? Or has this already caught up?

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..