Bitcoin from the economic perspective

Tellek Garing

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Quote from: Lanatsa on February 16, 2022, 04:39:06 PM

Quote from: Tellek Garing on February 05, 2022, 12:31:44 PM

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

Just put some example on whats happening on El Salvador.. This is the real thing that we could really give out real time opinions or sayings on what we are seeing on real time rather than

on being speculative on how it could economically affecting a certain country or place.If it wasn't made as a legal tender then I don't see much impact yet people would be using it
on silently and circulation wouldn't still be changed up.SO I don't see the point on why people do really keep tagging it on an economic perspective?

You are accurate on your point as the Bitcoin network is is a highly volatile asset and since it does not have a stable price its effect on the economy may not be directly felt like an impact, correct me if am wrong the El Salvador situation may seem to be a negative economic chart as the IMF have warned against Bitcoin adoption but on the contrary, too long term goals Bitcoin will have a significant positive reflection and means of inflation reduction.

Lanatsa

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Quote from: Tellek Garing on February 05, 2022, 12:31:44 PM

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

Just put some example on whats happening on El Salvador.. This is the real thing that we could really give out real time opinions or sayings on what we are seeing on real time rather than

on being speculative on how it could economically affecting a certain country or place.If it wasn't made as a legal tender then I don't see much impact yet people would be using it
on silently and circulation wouldn't still be changed up.SO I don't see the point on why people do really keep tagging it on economic perspective?

mobilestrike

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Quote from: TheNineClub on February 16, 2022, 11:39:07 AM

Quote from: Tellek Garing on February 05, 2022, 12:31:44 PM

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

If we are talking about third world countries, developing countries or ones that have their economies in turmoil, I would say they do not fear decentralization, rather they fear refusal of outside funding from bigger economies if they do not follow their lead.

If we are talking about leading economies, they just want total control over any part of the economy that is concerning their country, so yes, decentralization is an issue to them. But it's yet to be seen if those economies could even benefit that much from crypto.

If they will adopt blockchain and they will get benefit for their nation then I do not think that they will need any foreign funding so then why they again fear that other countries will stop funding them!
It is just their thinking because they do not know about the features and benefits of bitcoin and they just rely on the news of those who do not want them to adopt bitcoin.

TheNineClub

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Quote from: Tellek Garing on February 05, 2022, 12:31:44 PM

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

If we are talking about third world countries, developing countries or ones that have their economies in turmoil, I would say they do not fear decentralization, rather they fear refusal of outside funding from bigger economies if they do not follow their lead.

If we are talking about leading economies, they just want total control over any part of the economy that is concerning their country, so yes, decentralization is an issue to them. But it's yet to be seen if those economies could even benefit that much from crypto.

KennyR

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As of now only country that have adopted bitcoin is El Salvador. Just with a country's performance we can't get into a conclusion that country that have adopted cryptocurrency have been experiencing more of advantages than disadvantages. Market volatility will surely cause big destruction in a country's economy, but El Salvador being a country with population of 6.5 million the impact haven't been experienced big. If more countries join together bitcoin adoption might cause advantage in its economy.

Countries always fear of the decentralisation, and to have control countries are in the creation of their own CBDC. Possibly in the coming years we can see more countries making use of the official CBDCs than decentralised cryptocurrencies.

RealMalatesta

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Quote from: Flexystar on February 15, 2022, 12:38:35 PM

That is why National Digital Currency is coming into effect since a year now. If you go through some news articles then you can read and understand that how slowly each and every country is behind the projects of making digital currency. This is going to be based on the blockchain obviously and thus indirectly fulfilling the dreams of common people to use these instead of crypto.

However, to counteract the whole currencies it’s not that easy. So they will have to allow currency like bitcoin in the economic model. This will keep both the parties happy and keep them moving on.

I do not know if a centralized crypto would be the key to make profit for the nations. However looking at how people are interested in stuff like USDT where it is based on just one company, I am sure there will be some interest shown to national ones as well. It shouldn't be like that, people should not put their money into centralized coins but unfortunately they do and this means that governments could create their own coins and could make money from it as well.

I do not know how long it will take to get there but I know that it wouldn't be too long before they do something like it. At that point we are going to go through some major changes in the crypto world, every nation will want theirs if even one of them makes a lot of money from it. This will also disturb the markets a bit by changing the power USDT has and the power of USDT-BTC pair as well which is huge right now.

mobilestrike

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Quote from: bittraffic on February 15, 2022, 05:27:11 PM

It's still early to say it's going to be a disadvantage to the government that chooses to legalize BTC as currency. El Salvador for example is the only country right now doing it but it attracts lots of crypto businessmen. The technology makes an economic advantage like making use of LN.

Starting early makes it an advantage too but if the country adopts BTC 10 to 20 years later, the competition will already be steep. But the advantage of countries will depend on the location where there will be reliable energy sources such as volcanoes, rivers, and sunny places.

In the coming few day El Salvador will not be the only country which have legalized it as their legal currency but Russia is also in the preparation to make bitcoin as their legal tender and will be used as a currency for all the purposes of the state. Those who are entering there are getting its all benefits on time.

bittraffic

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It's still early to say it's going to be a disadvantage to the government that chooses to legalize BTC as currency. El Salvador for example is the only country right now doing it but it attracts lots of crypto businessmen. The technology makes an economic advantage like making use of LN.

Starting early makes it an advantage too but if the country adopts BTC 10 to 20 years later, the competition will already be steep. But the advantage of countries will depend on the location where there will be reliable energy sources such as volcanoes, rivers, and sunny places.

mobilestrike

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Quote from: 24Kt on February 15, 2022, 05:00:12 PM

Quote from: laredo7mm on February 15, 2022, 01:31:27 PM

Quote from: Tellek Garing on February 05, 2022, 12:31:44 PM

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

A technology that was created to create a decentralized environment for the economy which can be free from govt control becomes a key asset to store values. Bitcoin was supposed to be an alternative to fiat currency and the current situation shows that it is inevitable. Big tech giants like Paypal, tesla already started to accept bitcoin so I hope govt will also be more friendly towards bitcoin.

A lot of countries are already friendly towards bitcoin, but still most of them are hesitant because of its decentralized nature. Even if their crypto platforms are registered under their government's jurisdiction, still, they won't get the whole picture of it. But if they want a share from this industry, they can always make a clear laws and regulations regarding the crypto-related businesses and generate income from them. Better than letting them operate underground. At least, contribute to the economy of their country.

The decentralized nature of bitcoin is not that much harmful. It all need the government to learn about it and to learn that how to manage and maintain that system in their countries. Many countries are managing it which means that it is possible and not harmful for any country to accept it as their currency.

24Kt

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Quote from: laredo7mm on February 15, 2022, 01:31:27 PM

Quote from: Tellek Garing on February 05, 2022, 12:31:44 PM

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

A technology that was created to create a decentralized environment for the economy which can be free from govt control becomes a key asset to store values. Bitcoin was supposed to be an alternative to fiat currency and the current situation shows that it is inevitable. Big tech giants like Paypal, tesla already started to accept bitcoin so I hope govt will also be more friendly towards bitcoin.

A lot of countries are already friendly towards bitcoin, but still most of them are hesitant because of its decentralized nature. Even if their crypto platforms are registered under their government's jurisdiction, still, they won't get the whole picture of it. But if they want a share from this industry, they can always make a clear laws and regulations regarding the crypto-related businesses and generate income from them. Better than letting them operate underground. At least, contribute to the economy of their country.

laredo7mm

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Quote from: Tellek Garing on February 05, 2022, 12:31:44 PM

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

A technology that was created to create a decentralized environment for the economy which can be free from govt control becomes a key asset to store values. Bitcoin was supposed to be an alternative to fiat currency and the current situation shows that it is inevitable. Big tech giants like Paypal, tesla already started to accept bitcoin so I hope govt will also be more friendly towards bitcoin.

Flexystar

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That is why National Digital Currency is coming into effect since a year now. If you go through some news articles then you can read and understand that how slowly each and every country is behind the projects of making digital currency. This is going to be based on the blockchain obviously and thus indirectly fulfilling the dreams of common people to use these instead of crypto.

However, to counteract the whole currencies it’s not that easy. So they will have to allow currency like bitcoin in the economic model. This will keep both the parties happy and keep them moving on.

Tellek Garing

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Quote from: hugeblack on February 09, 2022, 07:51:01 AM

This benefit will not be achieved unless:

- State buys a few bitcoins
- Sets laws to track currencies, thus ensuring tax collection and the absence of any tax evasion

All is good, but it needs some acceptance from politicians and expenditures in infrastructure, which is something that is contrary to the current financial trend that is managed by central and commercial banks.

The best that many governments can do is classify cryptocurrencies as assets and thus be able to impose high taxes on them (income tax and exchange tax) or even accept to pay taxes using those currencies.

The increase in popularity among the population and the possibility of using them just like stocks will facilitate the acceptance of them by countries as legal tender, although I expect them to be used as a store of value and for trade exchange between countries.

Yes, Bitcoin being clarified as an asset will give room for it to be fully adopted within the centralized exchange market, but be so as it is because of the decentralized nature of Bitcoin a lot of its transactions may not be monitored by regulators and tax agencies.

Bitcoin services may be taxed but not all Bitcoin transaction can be taxed as Bitcoin allow for p2p transaction in any wallet.

Gozie51

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Quote from: ilikesumma on February 05, 2022, 05:38:05 PM

Decentralization and cryptography is for many still just a fantasy movie. Blockchain is King and bitcoin is simply a store of value.

These are same technology ensuring the success of decentralisation. Cryptography the technology and encryption of codes that embedded in blockchain obviously is the reason that the government not able to understand the identity behind transaction except where KYC is taken maybe in exchange and that is why KYC defies decentralisation in it common sense.

dbc23

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Quote from: Tellek Garing on February 05, 2022, 12:31:44 PM

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

It would have been better if there was a backup to your analysis. But I would agree with you that Bitcoin has lots of economic advantage and one of which is Bitcoin transactions are useful for international transfers and can be transacted by those who are unbanked using the peer-2-peer network available. It can also strengthen a nations economy since a single currency is used for transaction across boarder without the unnecessary conversion to fiat. The only fear of most nation is just the decentralization and will still be less of a challenge in the future

stepwilli

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Quote from: Tellek Garing on February 05, 2022, 12:31:44 PM

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

Yes, that is true applying bitcoin to a country is really beneficial. Either by using it as an alternative to cash or by using it as form of investment. There are countries that claims that using bitcoin can be damaging to the country but of course that was not true and those countries are just lying. They are only avoiding bitcoin because like you said they are scared of its decentralize nature but why would they be afraid?

We did not say that they are going to replace their current financial system. They will only use bitcoin as a second currency or as an alternative next to their local currency and if they want they can put some regulations. It is possible though.

Tellek Garing

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Quote from: Mometaskers on February 10, 2022, 12:55:28 PM

I don't really see too much disadvantages and most of it is up to the owner's own diligence, for example keeping passphrases safe, maintaining any hardwallet properly, etc. We are our bank. That alone is the reason why they are slow to accept it.

Using a none custodial wallet is the best form of protection of your funds and never store your money on an exchange wallet as you don't have the keys to the wallet.

Bitcoin has given its users the financial freedom to choose and become their bank and solve economic problems and limitations placed by the central bank or government.

Ryker1

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Quote from: Tellek Garing on February 05, 2022, 12:31:44 PM

Going through some countries economic performance and statistics I came to a big conclusion that the economic benefit bitcoin as an approved currency in a country is way more than the disadvantages of Bitcoin to an economy but what the government in scared is the decentralization of the financial system.

Well on my own --the risk of financial fraud and corruption is considerably reduced by the transparency of bitcoin transactions. Individuals and enterprises in underdeveloped countries are now able to participate in global financial transactions, which improves their economic and social standing. Bitcoin has a number of advantages, including higher economic activity, cheaper transaction costs, and increased capital flows to developing countries, all of which contribute to global economic growth.

justdimin

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Quote from: RealMalatesta on February 10, 2022, 08:24:26 AM

Plus crypto as a whole is not just one thing that you could agree or disagree, ban or tax, like it is a whole world. You can't just say "bitcoin is fine, we will make it legal and then tax it and you can all use it" and just go on with it. There are regular coins, there are tokens, there are defis, there are swaps, there are liquidity providers, there are stakers, there are miners, there are NFT's, there are so many things that you could do within crypto world.

It means that if any nation wants to be honest about regulations, they would have to be checking every single one of them. Doesn't mean that they shouldn't make it legal, they should make it legal but they would have to first go into very detail parts of it.

Still, most nations approach it that way and it could be fine as long as they regulate it properly. Most nations have laws where when one decision is made in one case, then it is used as an example in the future cases as well, which means that as long as there is a rough regulation drawn about it, we are basically looking at it as a fine thing.

Look at New York for example, they have a very hardcore regulation on crypto, many companies who where there ended up leaving and that is understandable, but the reality is that if we are talking about laws, then I would rather have New York over China. So as you can see, they can do it anyway they like, as long as they allow it, and make it legal, then it is great.

Mometaskers

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I don't really see too much disadvantages and most of it is up to the owner's own diligence, for example keeping passphrases safe, maintaining any hardwallet properly, etc. We are our own bank. That alone is the reason why they are slow to accept it.

Topic: Bitcoin from the economic perspective (Read 397 times)