Topic: Bitcoin and the economy - page 3. (Read 396 times)

Today Bitcoin crossed the resistance threshold which means a drastic drop is still happening. With the current phenomenon apart from news or issues that make the crypto market also go down, it will be an opportunity or ticking time bomb. For El Salvador, they just need to take more and back it up in Bitcoin. Developing countries will always perceive this condition as a threat because its value is still influenced by news. Whereas the reserves they still held onto like gold were not particularly touched by this sort of thing.

So, when all the global economic markets, both in countries that still doubt the adoption of their deposit in Bitcoin. Therefore, we cannot force the country as a whole, but rather specific individuals who have deposited their finances in Bitcoin.

I don't think there are countries (governments) that truly hate Bitcoin. In the worst case, they are afraid of it.

Governments have the power to control their traditional native currencies. Bitcoin offers a level of decentralization that seems to be working so far, but of course it is still a new experiment in a mostly centralized world. As far as I can see, the trend is still towards a centralized economy, with each central government going beyond its own borders to control the economy, while at the same time becoming less capable of controlling the rest of the world as people have more choice in the matter. Regulating or banning Bitcoin may only delay the inevitable.
However, governments will be very careful to make sure they can control the money supply, and that it is so precious to them that they don't want to lose it.

Well I think Bitcoin was overall not actually taken that seriously by the countries like El Salvador and they never thought that somehow it would be relevant in today's world. I do think that we cannot really compare bitcoins and the economy. The bottom line is the interference of Bitcoin in the day to day economic situation in any particular region, which is now minute. Had it been overly webbed then they wouldn't have been able to seperate bitcoins and other cryptocurrencies as a decentralized unit. It's not entirely related, a country's wealth cannot be determined by them being involved with Bitcoins as well. Plus I believe most of the countries are in debt now we cannot just pinpoint it to the debt revolved around bitcoins.

Before the concept of economy and bitcoin was different phenomenon. But now both of that was interlinked. Most of the country was legalised the bitcoin, to overcome the tax losses. But the world economy is now depending on the bitcoin and the crypto currency. People from poor family to inverse on the cryptocurrency now was the legal one now. The life of such people also uplift by the investment in the crypto currency.

If, you compare Bitcoin & Economy, I actually think the opposite.

They have reasons to do both, in fact they know Bitcoin is a prospect to boost the economy, for a country that understands it.

Like I said they don't hate Bitcoin, quite the contrary, they hate themselves, the reason is simple, Lust, meaning: the people should not live in prosperity, they prefer to see their people live in poverty, the program is running.

El Salvador, the current best way and solution in dealing with Bitcoin for its people, they want people to live better economically, not dependent on the state/government, social assistance, charity etc.

The economic effects depend on the amount of money that will be injected into the economy and the extent to which citizens are treated as legal currency. Let’s take as an example a country considering the Chinese yuan a legal currency. However, the amount of trade exchange between that country and China does not exceed a few million dollars and therefore it will have no effect.

Exactly if the Salvadoran people don't use bitcoin it will have no effect other than using it to hedge against the dollar.

As for why governments are fighting Bitcoin, because they are something they cannot impose taxes on, and it will cost them a lot to track those currencies, so they are banning them.

For large countries with strong economies I don't think making bitcoin legal or illegal will have a strong impact on the economy. The exception here would be countries like China who like to control their currency. Having unregulated crypto currencies could undermine their own currency. They are afraid to lose control, but since the economy is so large the impact of the crypto ban is small. There are countries like Iceland or Kazakhstan who are strong into crypto mining, they would feel a ban on cryptos much more. So overall I think a ban on cryptos are going to hurt economies because it would generate more taxes.

We can't have the whole world embrace a new technology immediately but with time they would definitely be forced to join the train when the see they have no other options. The challenge we have with global Bitcoin adoption at the moment is the fear of the unknown as well as the fear that Bitcoin has come to devaluate their local economy but the truth is no matter how much the fight the technology one day a new government who understands the trend would definitely see into it's adoption

If the countries do not accept it as a legal tender, they should at least make it legal. I believe countries that regulate their currency by their government can not make bitcoin a legal tender, but they can accept it which is still almost the same with little difference.

There is no official news that Turkey will accept bitcoin as a legal tender which some people can be confused, but it is possible that Turkey can make bitcoin legal. What I heard about Turkey is that Turks can use bitcoin but just the bank transactions from crypto organizations are block because of the ban. There are some countries bitcoin is banned but citizens can use it.

I second this. One currency, one blockchain, one store of value. Insane profits. The central banks should get their shit together and start dumping their gold reserves because they ain't good. They just sit there! Why don't they buy bitcoin instead is beyond my understanding.

El Salvador adopted bitcoin and yesterday there were news saying that Turkey is on the brink of adopting Bitcoin as well. Some say the news were fake but I am not sure about that. Turkey is exactly the country that would adopt crypto.

Saludos to our friends in El Salvador.

Some countries are now supporting bitcoin which is good and it is helping bitcoin adoption, some countries are nothing supporting bitcoin, some went to the extreme by declaring bitcoin illegal. El Salvador accepted bitcoin a legal tender, Kingdom of Tonga with a population of 100000 is making move to make bitcoin a legal tender. Bitcoin has done well because many country make it legal.

I started to wonder about the reason some countries hate bitcoin, it stated in many country by their central bank because they are planing ways to make the currency of their country superior, they see bitcoin as a threat. The banks will not come up straight to the point, all they will say is that bitcoin can bring up illicit activities. what is funny is that the illicit activities that had started many years ago before the creation of bitcoin.

This is not about the lies from the central banks, this is not about lies bitcoin critics are saying, this is about economic downside of bitcoin. Some people will say bitcoin will add nothing good to the economy, Some people are saying making bitcoin a legal tender in a country like El Salvador that do not have their own currency but spending US dollar will not offer anything good but a downside.

See this quote:


Before El Salvador make bitcoin a legal tender, see their dept relating it to GDP in the country from 2012 to 2020. Was there anything good?

See the reaction from many critics about El Salvador bitcoin adoption.

The question I want to ask is about the effect of bitcoin on economy in the countries that make it legal?