Topic: Bitcoin can be gainful for a deplored economy. (Read 445 times)

Rising prices of imported goods in foreign currency are the result of supply and demand, not inflation. Few people import, therefore they can rise the prices given the demand is actually increasing, due to the shortage of local production. Of course all importers will tell you stories about customs, taxes, and the hyperinflation eating their profits so they need to rise prices to keep their business afloat, but in the end is lack of competition thanks to a socialist (distorted) economy.

Bitcoin is a deflationary currency, as a main currency it should only be used in countries willing to adopt Austrian economics. The USD like most fiat currencies manipulated by governments IS inflationary, because the main stream Chicago school of economy (and Keynesians) teach how fearful deflation is. So they actually try to induce a steady inflation of about 2% per year by various means, including printing more.

Truth is deflation is good, when combined with Austrian economics. Austrians do not let bubbles form in the first place, therefore there are no crashes. All these bubbles are the result of fractional reserve banking, which Austrians ditch in favor of full reserve banking. Yes Maduro kinda gave the order to do that, but without a free economy and the rest of the Austrian measures, its useless, specially within a socialist economy.

Most people don't even understand how a full reserve bank works so I'll explain it to you quickly: If you open a savings account, they have to keep 100% of your money, they cannot loan it to anyone unless you move it to a special loaning account. Unless you do that, the bank should charge you a fee for keeping all your money in their vault, instead of you getting interest rates. If you move your money to the loaning account, you understand the risk that you might lose it should the bank goes bankrupt. Also while being loaned, it won't be available to you until the loan ends or is cancelled due to other factors. Done correctly you should never lose any money but instead earn a bit of interest. In Venezuela something very similar is called "plazo fijo" (term deposit). Of course this would also need changes to bank law and their operations. I think many bankers don't even truly know how this system works, but they should take a look.

While the main stream economics want you to take debts to invest which in turn creates profit and growth and more people take more debt, etc; Austrians want you to save your money first, and then you invest from your own savings instead of getting in debt. And you will by your own motivation, knowing your money is actually increasing its purchase power everyday, so you will only spend what you must, and keep the rest.

This is very much like contrasting the Chinese and American cultures. A Chinese would rather spend 15 years living in a humble house and saving to buy a new one, while the American would take a loan get the new house now and then spend 30 years paying it back... Yes the Austrian way is "boring" and slow, but firm and solid. While the alternative is the roller-coaster that makes bubbles and crashes.

Take only Bitcoin but don't implement Austrian economics, and its not going to help much. That is not too different from adopting another country's money.

Yes, every participant of bitcoin or crypto trading and investment that succeeded in gaining profit on its investment has automatically generated more money for the economy of the participant’s country of residence.

Most traders will still cash out some of their profits and convert it to fiat, which they save in the bank for the bank to use, or spend it within the country’s market, and as more money comes in to the market of the country, the higher their economy grows. I still don’t understand why government would not just give support to something that will benefit them as a whole.

currently bitcoin has indeed been beneficial for economic growth, for example many people whose economic level has increased because they have joined in the crypto currency trading. so that it helps the country increase the income per capita of the community.
and indirectly it has helped improve the country's economy.

agree, bitcoin is a decentralized cryptocurrency or digital currency that allows no influence on the crisis that happened. that way bitcoin will have the ability to continue to increase in accordance with the demand that happen. this is very good for an economic growth or helping economic growth to keep the crisis from happening globally

I think it would help a lot in blockchain ways and not currency ways. We already have a lot of countries who are basically third world and having issues, reaching to those people is the biggest expense ever. I have read somewhere that 70% of all charity money towards African poor people goes towards reaching that money to those people instead of directly to that people, you can just write money on bank to someone who is eating leafs in Yemen, those people do not have access to technology the way we do.

If you can actually build a blockchain infrastructure which is just mobile phones basically than they could have better chance, just one time payment from charity or something to make sure every house hold has one mobile phone than all money can directly go to people in need. That is why I think blockchain is the savior of these people who are living under harsh conditions and not bitcoin itself, it could be any coin but it has to be blockchain based.

Just to add, one of the problems of these countries are basing their debts outside of their own currency. The amount they owe to whatever currency they decided to base their debts are directly proportional with the amount they had to pay. It will undoubtedly increase overtime and the dire results will show.

Bitcoin, on the other hand doesn't promise anything about gains but you will surely lose more if you put money in here. Its about time we stop thinking that if they did this and that, something will change.

Although bitcoin is the latest technology in the world of finance rather than perfect money created by the government, however its immediate benefits can truly be felt by many parties because bitcoin does not favor one currency only meaning globally it can be exchanged for national currencies any country. So what Goldman Sachs Zack Pandle and Charles Himmelberg say is true because bitcoin has met the standards for these criteria.

Undoubtedly, bitcoin can be (and has been) a reliable store of value in those countries whose economies have suffered considerable economic crises, as in the case of Venezuela, and that is why some dictatorial regimes are making efforts to veto the use of cryptocurrencies in their territories, or have failed to create a national "crypto", such as the Venezuelan "Petro".

Fortunately, none of these attempts has worked, and bitcoin continues to be sought out assiduously by people from these countries, but unfortunately its technology has not been available to the great unprotected masses of the poorest sectors.

If they are talking about countries who currently have hyperinflation like Venezuela then they might be wrong about it, you see in places just like this even any foreign currency is affected when use in that country, just by having a foreign currency doesn't mean it will be immune to inflation in that country. You see inflation here affects two things aside from the devaluation of money you will also encounter the increase in price for goods which is common when the supply runs out. So this means even let say the US Dollar is backed by its country it doesn't mean that it's value for that country will be the same all through out. Their statement might be partly through but it cannot be applied to all countries' respective economies.

Just take a look at reuter's article on how the US dollar was affected even if it was a foreign currency in Venezuela.

this field of Crypto market says that everyone can be gainful using this opportunity so making the chances is not in our hands but using the opportunity is always been important to gain the success so my opinion is field is not only useful for making the money but holding our self confidence to the future is always filled with the hands of cryptocurrency field.

big time is mostly used for creating a changes in anyone's life so the economic situation always depends on the money only so it definitely change is it when its development was increased to a good level.

Until now I only see positive thing in bitcoin usage. Bad news that spread are mostly about crime that done by some people. Maybe that experts at goldman sachs is right, also I think nations with unsteady economy need bitcoin because it can help their citizens to become wealthier so it economy can be stronger.

Any country that is smart will know that fighting Bitcoin is just wasted effort. You either cash in by being a part of it or you lose revenue by banning it. I mean,,, even you should look at Thailand they allowed crypto but will impose such high taxes, but in the end at least businesses have an outlet and yes, the state gains something out of it. And you are absolutely right, if you run,,, things catch up with you, one day sooner or later!

In both Zimbabwe and Venezuela, it was the wealthy who used bitcoin (they had access to smart phones, the internet, and a reliable power generator attached to their homes).

The poor use dollar bills, because you don't need any tech to use them. Zimbabwe even legalised the use of dollars, euros and pounds because they reckoned that allowing people to use them stabalised the country.

I think bitcoin can be a solution for people to avoid inflation, with the decentralisation bitcoin won't be too affected by global crisis and it could help people to get a better life, by providing more job opportunities when the economic collapsed, but I don't think bitcoin could be the solution to solve the crisis problem, it could be  a temporary solution

Seems like people like Goldman has been opened for new solutions in the economic issues. But, i was just thinking. If it is neccessarily to use bitcoin to solve such economic crisis, how will it can be of help if the price of btc immediately fluctuates? We are not talking about the technology given by btc, but OP emphasized the reasonable methods of installment using btc payments.

 We all know that btc is volatile, thus can also be put into consideration. Don't get me wrong, but I was just thinking if it can be really an aid to one's economic situation if the price is not stable.

I disagree, I believe it's just an option because there are ways to help the collapsing economy, like increasing the business opportunity to enter in a country, or solve the corruption within the government as that one could be major reason why an economy will collapse.

Bitcoin on the other hand is still new or at its early stage, we cannot be certain that it will have bigger demand in the future, and like we witness in the past, it can dump hard because manipulation is still happening.

I think that this is one of the things where bitcoin can really make an impact, on a grassroot level.

There are countries previously hit by hyperinflation where its citizens were essentially forced to either barter (which is extremely inefficient), or transact with worn and torn dollar bills that are incredibly hard to obtain and were often illegal. Just look at Zimbabwe, and Venezuela in recent memory.

BTC not only can be used as a store of value in these times when a fiat currencies have collapsed, it can also function as a currency, which is something that gold and silver can do but doesn't do as well as bitcoin given its inconveniences.

It is indeed gainful for a country with unstable economy only if Bitcoin will continue to grow. For my point of view, a volatile kind of currency can carry the economy up and it also has a tendency to bring it down. So it's better not to totally rely on Bitcoin but instead make it an option to regain momentum in terms of financial aspects.

Governments already can't pay back their debt.

Look at the US for example, no amount of printing can halt the rate at which their debt is increasing day after day. All they can do is inject trillions in their economy to delay the process of seeing their economy implode, but that's obviously going to K.O. you in the long run.

Essentially, they can still print money with Bitcoin in place. All they have to do is build on top of Bitcoin the way Tether has done it. They can issue as many tokens as they wish. Currently we don't know how much fiat there is in circulation, but that's totally different in case they do have built their currency on top of Bitcoin. There is no way to cheat.