Topic: Bitcoin and Bad Economy (Read 318 times)

Other than for long-term investing, Bitcoin can also work great for trading and short-term investing because its value can quickly go up or down. When it comes to hedge against inflation, Gold and other scarce assets can also do it other than in Bitcoin. They are also more stable so if you constantly need money, you can go on them but if not and you are keeping your money for future use, you might benefit more in Bitcoin. BTC is a currency and can work great as alternative to the country's local currency. Other than that, it can help people to earn in different ways. It really can impact the economy.

El Salvador made BTC a legal tender so that Bitcoin can be used directly and it does not matter if BTC is volatile or not. Being a Bitcoin-friendly country, they also built Bitcoin cities and hubs which attract tourists to do business. They are not concerned about the volatility because the price can always recover if given a time.

While your statement is partly true, I can pretty much say that it's not the entire truth so to speak. Yes bitcoin could really help maintain the value of someone's riches by a longshot, while at the same time offering large profit margins. But in essence, the people put their money and their trust into bitcoin because no matter rhe market trend, there's the promise of profit looming over no matter how high or low hitcoin's market is.

I'm not a maximalist about bitcoin basically still not going 100% to invest in bitcoin and ignoring other asset options outside of the crypto space. It doesn't matter what anyone will say because diversification of investment assets also needs to be considered. I agree bitcoin should be thought of as a proper investment asset instead of holding fiat, but I never want to put 100% of my budget in bitcoin because of the risk.

While it's true that bitcoin can provide investors with good returns, we shouldn't ignored one thing - no one knows for sure what the future of bitcoin when we recognize that government and regulation are the biggest challenge to its adoption.

Yes, due to the limited supply of Bitcoin, it will never see the inflation that our traditional currencies have seen to date. And that is the main reason many of us believe that it will free us from economic hardship and yes it cannot be controlled by any state or individual and it is personal protection more than our conventional economic system. But we have to keep in mind that even though Bitcoin does not have inflation like our traditional currencies, but it is highly volatile, and that makes it a risky investment too. But if it is kept for long-term investment as an asset then I think it can be a new digital asset like gold which is one of the means to hold our wealth.I would recommend doing your own research because no one knows your capabilities and risk factors better than you. Moreover, I think it will not be a wise decision to rely on others to do research Because if you want to invest, you have to take the risk completely, that is, your fund will be more protected on your own research, which you will not find in others' research. So I would say to build your research capability before investing, it is better not to invest before that. And if he wants to invest for the long term, then he can start investing in Bitcoin as much as he can afford now, because Bitcoin is always safe for long-term investment, especially at the current price of Bitcoin, it can definitely be invested in it as a newbie.

And if you can't do your research find and depend on someone who you know can do research for you or whose research work you can depend on, these people are sometimes hard to find. Do not just invest any money without any form of research because that will be a regrettable situation for you in the nearest future maybe not necessarily because the investment may fail but it may turn out to be not the right investment for you. With proper research you have a good understanding of what you're getting into and that will prepare you to handle any emotional burden or stress that comes with it.

Although I believe that bitcoin will indeed bring potential benefits for the long term. but that doesn't mean I will keep everything in bitcoin. but bitcoin is one of the few long term investments that i have to have. and i also believe that bitcoin is not as affected by inflation as money. even when the Russia-Ukraine war occurred, we actually saw Bitcoin experience a slight increase at that time. maybe many war-affected citizens want to save their property or assets by changing them or putting them in bitcoin. because if we can also send bitcoin to our relatives who we can trust abroad quickly and safely.

I am also saying the same thing but even the situation is getting better they should have look into this.   Because Bitcoin will not always be in pumping or bull run, the more their economy becomes dependent on Bitcoin, the more difficult their economic situation will become in bear season. But here is the hope that the bull run and the good conditions during the pumping will be able to make use of the condition to pass the bear season. I hope the government of El Salvador can manage this issue well

It is right that journey of transformation often comes with difficulties and challenges, this is the current realiy in El-Salvador. Unfortunately right after the country declared Bitcoin as legal tender, the price of Bitcoin started decreasing and came down to the extent of 80% which  further aggravated the economic situation which was already facing challenges of heavy foreign debt.

Having said that, the situation is getting better now. as Bitcoin is  on the path of price recovery, hopefully, the decision of El-Salvador will definitely benefit the country in the long term.

It is true that El Salvador will definitely be beneficial in the future if they can properly manage their country's economic sector in addition to Bitcoin holdings. Why I said this is because since El Salvador has accepted Bitcoin in their legal tender, it will increase their Bitcoin adoption and also when the Bitcoin market is down, their economic condition may be worse and survival is the main factor here. If they can cross this intelligently then I think they can be ahead of other countries in the crypto industry in the future.

You have highlighted a valid point about involvement of miners to confirm Bitcoin transductions and it can cause delay in transaction if there is sudden decrease in mining activity, however we should understand that it is their vested interest to remain active as they charge fee on every transaction.As far as support from government in case your wallet is hacked, it depends on how much friendly government is towards Bitcoin and we should continue raising our voice to adopt it is as legal method of payment which is in the best interest of everybody.

Bitcoin is not different than other investments with risk exists together with chance to gain profit. Risk with Bitcoin is even higher than other investments because regulations on Bitcoin and Bitcoin mining are unknown in future.

It is biggest risk for Bitcoin because with Bitcoin, without Bitcoin miners, there will be no confirmation for Bitcoin transactions on its public ledger. In addition, with Bitcoin, you have to store it in your own wallets, not in online wallets and in many countries you will receive no support from governments, police to find scammers or hackers who steal your bitcoins.

Bitcoin and fiat currencies have different supply models. They are both inflationary but with Bitcoin, you know its total supply (21M) but you don't know total supply of fiat currencies (but you know their supplies will only increase more and more with time).

Bitcoin solves devalue problem from inflation and a rest challenge is how to increase its demand. With more adoption in future, demand will increase and I believe price will be higher.

Alright, Bitcoin's a gamble, but I'm all-in on its prospects as a fresh financial ecosystem. As you noted, no single government or squad's got a grip on Bitcoin, so it might just outrun traditional currencies in the stability and security race. With the digital revolution in full swing, peeps are craving decentralized and bulletproof financial systems. Bitcoin could be the hero we need, offering a rock-solid way to stash and move our dough. Of course, there's no shortage of risks and head-scratchers tied to Bitcoin. But I reckon that with some solid research and investment chops, we can sidestep those hazards and cash in on this uncharted territory. So, let's gear up for the future and back Bitcoin's potential!

Do your own research is the best. How will you know who is an expert in bitcoin ? We have seen so many people who claim to be bitcoin experts on social media giving wrong information on bitcoin speculation. Bitcoin is risky,but you will benefit from it,if you invest in long term.

All you need to do is to stick to the forum and learn from here before starting your bitcoin journey so that you will keep on learning about your investment ups and downs,and how to make progress in it. Bitcoin is sure an asset and also a store of value to safe you from devalue of fiat due to inflation.

Holding Bitcoin for long-term come along with enormous rewards. Bitcoin is volatile and we should be able to understand the hand written on the wall. Bitcoin have saved us in the past and we shouldn't jeopardize it's volatility for granted. Bitcoin displayed a promising future following it's solid road maps. El Salvador implementing Bitcoin as a legal tender extends the country into a digital age ahead of other nations, but they experiencing economy crisis because bitcoin is volatile and it's operation affects almost everything in the country.

Indeed holding Bitcoin for long term can be beneficial investment decision as it is generally considered hedge against inflation due to its limited supply. However, its role to impact economy of any country in good or bad way is debatable topic. El-Salvador was the first country to adopt Bitcoin as legal tender with aim to improve their economy, but their experience didn't turn out very successful due to volatile nature of Bitcoin.

it's because they think that if their own country's currency goes down, they can still use foreign currency in a form of bitcoin since crypto can be used by anyone in different parts of this world if they have access to internet. think about it, let's just say you're from US and if ever the currency goes down, will you be ever to use Chinese currency which is Yuan? of course not right, if ever there's a possibility that you might be able to use them, it won't be that easy as what bitcoin can offer.

it is one common benefit in using crypto, which is the freedom to use it as long as it is accepted as a legal tender. i do agree that bitcoin is already on par with our traditional assets, but if ever there are skirmishes happening in the big nations or let's just assume there will be a nuclear threat, money will be worthless and all the assets including stocks. you might think that it will be the best time to buy before it skyrocket again but you won't know how long the skirmish will last. economy is already considered as an external factors which can greatly affect all assets that's the fact that we need to face.

Even though there is no assurance that Bitcoin's value will rise in the future, some investors think it might represent a worthwhile long-term investment opportunity.
Treating Bitcoin as an investment is the same with other assets too, like non-crypto related, where risks are always there.
Before making any investment decisions, it is essential to conduct your own research, comprehend the risks involved, and speak with financial professionals.

Other assets such as gold would matter more. Also, this industry I guess is not safe from inflation simply because its value is still based on fiat currency. And this is because of issues concerning mass adoption of this technology. This technology is not yet ready to be used as a mode of payment because of its volatility and will still be more beneficial for investors as an investment to generate profit. No matter how we push usage of cryptocurrency, if the government would still promote usage of fiat, then things won't change; you'd be as well be pushed to do the same thing. Unless you are willing to pay more than you're supposed to because its equivalent on a transaction would still be fiat.

Since ever bitcoin was created there has been a call and clamour for a massive adoption of Bitcoin, but it is not happening any soon. Yet there is an appropriate and steady adoption of Bitcoin, even if it is not massive.
Then there is a certain condition that propels bitcoin adoption and that is when there is an economic downturn or when there is some certain unfavorable conditions in the economy such as war.

Bitcoin is being recognised during this unfavourable times because the people would believe that bitcoin will be the safe place for their money instead of leaving it in a centralised government financial institution.

So should there be more war and economical disturbance in order for bitcoin to be massively adopted? I  think no! is the answer.

Not some but most investors think that way, and that is a fact. Economies that go bad from good surely accelerate the adoption rate of Bitcoin only if there is enough awareness among the people living within the country that is suffering from a bad economy or an economic crisis. People put their money in investments that will keep them safe from devaluation.

Bitcoin is probably one of the best options people can have in such situations, but it isn't the only option out there. I think real estate and gold are a couple of assets that can be used alternatively to safeguard your wealth from the effects of a bad economy.