Topic: Bitcoin is the Best Option: Because of Dollar Rate Cost of Living is on the Peak (Read 472 times)

I don't know you country but I think you are getting something wrong, from what you are saying you aren't in the US I guess, and the original owners of the US dollars is the United States of America but the globe has seen the US as the universal value of finance, we practical calculate finances in the US dollars.

So if anything those who earn in your local currency should fill it the most than those who earns in the US dollars. Because your currency is deprecating to the US dollars making those who earn in dollars have more when they concert to your Local currency but the sad truth is that the price of things would also increase in your country.

Bitcoin may not be able to solve this completely because the economy of your country needs to also improve and your leaders has their part to play .

This is a good decision because people have other alternatives to fiat currency in terms of purchasing anything, but not all countries have implemented it and there are still many countries that see bitcoin as an investment asset. Now there are many online shops that accept payments using bitcoin even though we are in a country that prohibits transaction activities using bitcoin. If the benefits of bitcoin can provide a path to freedom then there is no harm in us taking advantage of it, but I still like bitcoin as an investment asset to this day.

That's quite a small income and even in the country where I live if we earn a salary of $80 every month then just food costs are not enough. If someone earns such an income, I am sure that they will not be able to carry out investment activities in Bitcoin because just talking about needs is not enough and how can they possibly set aside that money for investment. I want to know how much income you make every month and what investment formula you would use if you got that much income every month.

My bitcoin dca is my hedge against inflation, hope it will work well. It's getting more and more expensive to live

There is no need to talk bad about USD or any country's currency because whether they are good or bad, they are all part of our lives, we still have to use it every day even if you have bitcoin.

Additionally, bitcoin transactions are neither cheaper nor faster than current fiat systems. There were also times when I had to spend 5-10 USD per bitcoin transaction and I even had to wait up to a week to complete my transaction. Nothing is perfect and our world will be better when Fiat and bitcoin exist side by side.

Bitcoin is real. I promise it's the best deal. See the dollar? It's a disaster. Prices fluctuate widely. Makes running a business and grocery shopping miserable. Bitcoin, though? Stable. Secure. The government cannot touch the future. We need that type of winning.

It's not just fancy investors. Bitcoin restores authority to the people.  Countries are smartening and seeing opportunity. Openness to Bitcoin offers more freedom for everyone. Actually your money. No banker's toy. I desire that planet.

Businesses, please join. Bitcoin transactions are cheaper and faster. That means things get cheaper. For everyone, not just the rich. Imagine your paycheck buying something useful. This is possible with Bitcoin. This isn't about instant riches. Building a better system. A fairer system. A system where America wins, and everyday people win too.

I'm not aware of bitcoin has ever influenced the naira before or if any of  the centralized currencies has ever influenced bitcoin being a decentralized digital currency before. Dollar is only a universal currency which is rated by the value of the bitcoin else Investors or bitcoin holders wouldn't be able to know the financial values of the holdings of the bitcoin.
Op, I can also tell you that if bitcoin I generally accepted without being restricted as it maybe, it wouldn't still change the economy system of the countries were it's valid. Rather it would offetonly have the potential probabilities to limit poverty specifically to the holders. Hence I know, bitcoin economy is not affiliated with the global economy system.

Dude, just look at El Salvador, so far they're not on any economic journals and news yet that says that they're growing as a country because they've legitimized bitcoin in their country, they're probably more famous now with doing a very strong and iron fist policy against crime, the president and the country of El Salvador is cleaning up the streets of gangs and that's where they're focused now. Now when it comes to their adoption of bitcoin, I believe that they'd probably benefit even more and we would see more economic growth if the people of El Salvador is also using it but it seems to be not the case. Sadly, just because bitcoin's a legal tender doesn't mean that it will make a country prosper.

This is certainly the future we are hoping to see. I do think that it’s quite in the long run still especially more and more people becoming interested in bitcoin. We can expect that the mempool will be a lot more congested thus increasing the price value of transaction fees.

Another thing, I do not see my country progressing into adaption of bitcoin any time soon. There are no bans but there really is no support either from the government. This is why I know it will take a lot of time for bitcoin to come close to becoming a legal tender if it will ever be in my country.

Do you think that bitcoin can never turn the wheels of a country's economy if the government of that country has not given legitimacy to bitcoin, then they can never transact openly through bitcoin. But some of the investors who are investing in bitcoins may be getting some financial gain as they are able to live comfortably but not as much as they are able to cross the threshold. But day by day people's popularity towards bitcoin is increasing more and more people are showing more interest towards bitcoin thus if the number of bitcoin investors increases and the value of bitcoin increases of course they can do better things through bitcoin in future.

I don't know how bad the economy is in your country but even if everyone in your country uses bitcoin and the price skyrockets to an ungodly price, the economy would still be so bad because of the factor that not every person that's holding a bitcoin is going to be a responsible person, the moment that you get a bitcoin and that you can sell it for so much, a lot of those people are going to choose the route of selling quickly. It will improve the lives of everyone that would sell and may boost the economy for some time but it's not a long-term prosperity that's going to lead anyone to a really good kind of growth. Economics is a difficult thing to tackle on and even harder to solve with just one simple solution, if that was the case, a lot of countries would be fighting over bitcoins that are newly minted and they want to get it as soon as possible so they can improve their economy.

Bitcoin might be the best option, but it is a threat to government control over its citizens. Hence why many sue for taxes and details of transactions from the exchanges.

So far, there has been moves to regulate BTC and cryptocurrencies in general, since cryptocurrency can't totally be ignored in this century when AI, web3, virtual reality has been so developed and gaining usership.

Inflation has sure risen and keeps doing so, and many independent businesses accept payments and make payments across borders without spending much on bank fees and charges. Though, it costs a bit to withdraw or send BTC, but as compared to how much tax is expected of everyone and how much the fiat banks would require to complete ones transaction, BTC has sure been a safe haven and would be much accepted before it gets to another ATH in the future.

Still, the dollar rate is as a result of your country using it to purchase goods or should I say import and export produce on a regular basis, without depending on using its fiat to strengthen its economy by patronizing homemade products and development of other initiatives that would alleviate the plight of its citizens.

The cost of living is as a results of various economical challenge.In a nutshell,the dollar rate has increasingly made the cost of living  threathening and unsafe for us.As the value of the USD erodes due to inflation and other factors, costs of things also rise, thus inducing a higher import cost for businesses and trade.

This means that when the dollar appreciates, other currencies essentially depreciate, making the world poorer and less able to engage in trade. It also makes countries that have dollar-denominated debt less creditworthy, as it makes it harder for them to purchase the U.S. currency to manage their debts.
https://www.reuters.com/plus/how-a-strong-dollar-affects-international-currencies-and-commodities

When it comes to fiat currency, the United States dollars is the world reserve currency, Switching to Bitcoin running economy isn't still the solution to fixing an economy where inflation is high, because as it stands, I don't think if the world is ready to do away with the fiat currency, the need will still be there, I see Bitcoin play more of the role of Gold, that's a store of value and a hedge against inflation than replacing local currency.

However, an economy can be fixed by increasing or encouraging local production, which will automatically increase supply to put pressure on increasing prices of goods and services and further increase exportation, Government should also build things that will attract foreign investors to invest in the country, thereby increasing the demand for one's local fiat currency and further strengthen and appreciate its value.

Well I will agree with you and also disagree with you. I agree with you in the area that the policy of government affect the exchange rate in the international market and probably the tax the government takes from the international businessmen will make them to increase price to cover up the tax the government has taken from them. So from that angle things would increase in price the customers would suffer for it.
And why I said dollar affect the local production and high cost of living because in my country once dollar rate is increase in the exchange market everything would increase tremendously. Therefore dollar have a big say in my country. Though government policy follow but external body ask the internal body to devalue their currencies.

Bitcoin transaction fees can be low but it’s unfortunate that it isn’t fixed. The last time I made a transaction, it cost me about $2 but I remember about 2 months ago when it was as much as $12.

Dollar doesn’t devalue Bitcoin. The worth of Bitcoin can be described with any currency (even cryptocurrency) as it must not always be with dollar. People are just fond of using dollar as it has dominated the world. So whether you directly purchase from vendors with Bitcoin or you trade it for dollar, as long as you’re using the money instantly, it’s the same thing. 

Some banknotes have value while some did not have good value in global market especially those countries that depend on USDT to import and export goods. Dollar rate has affected many country’s economy which has made their local currency less valuable and as a result of that, inflation affected their economy.

Holding local currency is not advisable because of how inflation is affecting se country’s currency; instead, we should invest in Bitcoin that can store value so as to get the use of your investment anytime you are ready to use your money.

I am agreed with you on this note, because the government policies are the ones affecting the cost of living in most countries and the increase of the dollar by devalueing their currencies by thinking that by doing that their states economies would be better but the opposite always display for them. Dollar might play a vital role in the increase of things in the country though you have started it and it is very much clear for average educated person to understand and really if the country uses imported goods then it is possible that stuff that were imported from the other country would create inflation in the receiving country.

And for the transaction fee, Bitcoin transaction fee is good now so business can accept bitcoin as one the payment method in the business.

Bitcoin's transaction fees can fluctuate significantly, potentially hindering its widespread adoption by merchants due to the unpredictability of costs. Additionally, its inherent price volatility poses challenges for everyday transactions, as businesses and consumers may be hesitant to accept or spend an asset with a fluctuating value. The accessibility of Bitcoin infrastructure and technology is a crucial factor. While some may be comfortable navigating digital wallets and exchanges, a significant portion of the population, particularly those with limited technological literacy or access, may face barriers to using Bitcoin effectively. This raises concerns about potential financial exclusion and the need for inclusive solutions to ensure equitable access.

While technological innovations can offer valuable tools, it's important to recognize that they are not panaceas for complex economic challenges. Focusing solely on Bitcoin adoption without addressing fundamental issues like job creation, domestic production, and sound economic policies may not lead to the desired outcomes. A holistic approach that leverages technology alongside other strategies is crucial for achieving sustainable economic development.

For now maybe yes but the fees are not always like that, but sometimes it is lower than a dollar too. If we need a thing often, well yeah it's better to spend or buy in bulk as it can save us not only fee but also time and effort. Lightning Network is not a new thing so I believe the adoption for it is already high but it's just that we don't notice it because many people are still contented with the main chain of BTC and then it was less promoted or supported.

When you say human resources are you referring to the HR when we apply for a job? Well they can be strict because this was their job, so I won't really put the blame on them if we can't get accepted. Maybe we only lack of things that they are looking for, but we can always improve and try again. Sometimes it also has to do with luck.

It makes sense because there are countries who have sanctions imposed by USA and still they are doing good because they are producing stuff internally and not much dependent on imports, for which you need USD. As long as government is determined on self reliance, the USD monopoly cant affect the country economy.

US government is free to print as many USD as they like since it's backed by nothing. Unless the USD printing machine is working fine, US government can print USD currency notes there is absolutely no limit of it.

Bitcoin is in its very initial stages and right now its impact is on individuals. We need to wait and see whether it can have any impact on economy on large scale in the long run.

Apart from the fact that you contradicted yourself in two paragraphs, dollar on its own is not affecting the cost of stuff including fiat exchange rate in other countries. What affects them is the decisions of the governments of those countries.

For example when they keep printing their national currency, they devalue that fiat and consequently price of everything goes up against their fiat.

The only case where dollar comes in is when that other country is an importer of US inflation. In simple terms that is when US prints dollar out of thin air and purchases real goods and services from that country.

Now, granted bitcoin has created great opportunities for a small number of individuals in different countries to make some additional money and improve their own personal financial situation, but as a whole it is not affecting the economy at a large scale.

I don't know why some feel that Bitcoin is some form of other thing apart from just being an alternative to fiat currency,  and providing some form of freedom from third-party involvement and control,  so for that, you have to take note of the real ideology of Bitcoin and what it stands for, most time some countries economy suffer drastically due to their economic policy and at that those that have access to global assets like Bitcoin which value is higher than other countries currency will have some form of financial freedom.


That is the main reason why countries like El Salvador 🇸🇻  made it a priority to adopt and invest in Bitcoin due to its ability to give them an edge against inflation in the long term.

While there is hope and a high probability that Bitcoin will continue to rise to historical prices, I think it is a mistake to think Bitcoin is the savior particularly in the situation you described.  If cost of living is on the peak then the worst thing you can do is think it is better to have such a volatile Currency to replace yours.

If something bad happens again.  Such as a war or a global crisis.  Bitcoin will probably drop again significantly.  Bitcoin is not the solution to it all, particularly to poverty.  It proves to offer a good profit over long time but few are patient enough to actually profit off it.

This is akin to saying that money can buy many things but not the happiness that we are looking for. Money can then be used to buy things that can have positive impact in our lives and from there those things can help us be happy. And this is the same thing with Bitcoin. We are never advocating that Bitcoin is the big solution for any country's malady but in some respect it can help. When people are educated with Bitcoin they will come to realize the folly of the centralized banking to print more money without balancing the side-effects it would have into the future generations. When leaders have this kind of mindset, they will try to rein on things and not allow indiscriminate printing and spending of money.

I always throw away my money and leave a little for daily needs, I allocate large amounts to gold, shares, mutual funds and bitcoin, some in altcoins too. saving money only reduces your wealth, every year it is eaten up by inflation, especially like yesterday's corona, in 2023 our country's money will lose 10% in value. Just imagine if you had $100,000 now it's only worth $90,000, this is really crazy, so if the OP's suggestion is a bitcoin solution, I somewhat agree. Bitcoin is similar in nature - similar to gold, or you could say online gold, or all currencies replaced with gold, I really agree.

Yeah, that's how it was originally intended. But something went wrong. People began to use bitcoin as a means of investment, and not as a means of payment.

So, I’ll ask for details in the highlighted text.

How does the dollar devalue a bitcoin? People themselves devalue bitcoin with their sell orders. The more sales, the more supply, the lower the price. This is a classic.

The dollar is still the yardstick for assessing the value of things. All over the world. Even within your and any other country. Even when the price tag is written in your national currency. Because any other currency is a repainted dollar.

Again the same question - how? The cost of living can be affected by an improvement in the country's economy. You idealize bitcoin and see it as a solution to everyone's financial problems.

So this is not a dollar problem, but a problem of the banknote in your country, which is weak due to a weak economy and poor management of the financial sector. Don't look for the source of problems outside your country (in the dollar), for it is within the country.

As I said earlier Dollar does affect the fiat currency but it does affect bitcoin to be devalued so if things are purchased with bitcoin will the price of things would be as it is? And I didn't say bitcoin will reduce inflation, I only said please understand me, since dollar causes the high cost of living, because of the exchange rate with the fiat currencies so if bitcoin is used, it will not be like that.

And for those who said bitcoin has nothing to do with the National Economy and bitcoin has nothing to do with the cost of living. You would have been a burden to the government or moving around looking for jobs from one place to another if you were not a bitcoin holder. @SatoPrincess from your comment, you are not a economist so you don't understand the important of bitcoin to a nation economy. If bitcoin has no benefits to a Nation Economy, Nigeria wouldn't lift the ban. The unemployment rate in the country is very high, but bitcoin came to liberate many youths from the poverty line and you are saying that bitcoin has nothing to do the nation economy. Do you know the Macro Economic Deficiencies Bitcoin has solved for individual in the world. And bitcoin can reduce cost of living because dollar does not affect bitcoin and dollar is the caused of cost of food items. I have been in this ecosystem for one year now and I know how I am now.

Bitcoin is a very good option in cases like this, but not that it is just a good option because it is Bitcoin but it is a very good option because it is an asset that people can invest their money in and earn a return. This return can be a very good means to cover up for us during times of inflation when our country's currency will be getting useless in worth gradually. But this still depends on the country we are talking about. In my country, though Bitcoin will help, but it can't still measure up for the huge inflation that has happened and that is still happening. Bitcoin is trying, yet, the inflation is bitting so deeper than it.

And for you to know the gist, within a few years now, we are now talking about 5-10 times higher in price. This year alone (as new as it is), some goods and services have tripled in price, though some could still be doubled or almost doubled depending on what we are talking about. So, it is that bad. I just hope that things will be fine with time even as we use Bitcoin and another possible assets to try to hedge this nonesense inflation that is frustrating people daily.

The cost of living in any country around the world has little to do with Bitcoin. If you live in a small and underdeveloped country, which has a low value national currency, then switching to BTC might provide some benefits, but I don't think that the overall cost of living in your country will drop. I still don't see any mass adoption of Bitcoin among the small business and the majority of the people. Bitcoin will keep being "digital gold", which would rather be adopted by big institutional investors. The retail businesses will stay away from BTC, due to various factors.
The transaction fees and the Bitcoin price volatility are the biggest problems, that represent a huge obstacle towards mass BTC adoption.

Cost of living is a comparative value not something based on some other foreign currency or Bitcoin. It should be compared with salaries.

For example if the cost of living is $100, if you get paid $120 you are good and cost of living can be called "low" but if you are being paid $80 the cost of living is considered high.
If you replace your national fiat currency with Bitcoin and cost of living becomes 100 satoshi and you get paid 90 satoshi, the cost of living is still going to be high.

In other words, cost of living being high is not something can be solved by changing the national currency. It is a problem that can only be solved by fixing the economy on a bigger scale and normalizing the salaries.

Yeah inflation is getting very sticky. We got a bad cpi print when we assumed we would get a leaner number. What this means is that fed rates won’t happen till end of the year.

And as a result stocks and crypto took a small dip yesterday and later recovered. When rates stay higher longer then stocks will trade sideways or go down.

The issue is when fed cuts rates due to some economic crash then people will buy assets like crypto, real estate, stocks because the market will be flooded with new printed dollars.

Bullshit.

If you only get paid $80 per month, that means $1 is valuable for you, but Bitcoin transaction fee now cost for $1 per transaction, it means you're need to spend twice amount when purchase a small thing. Don't talk about lightning network or side chains, it's not yet well adopted right now, don't expect government or businesses to accept it in soon.

The main problem of poor people are the jobs, not the currency.
The main problem of developing countries are the human resources.

Well, to me it is not surprising that the OP has no clue about economics, something that can be seen in the of comments trying to explain to him the gross errors he makes in the OP.


Surely the OP starts from the simplistic idea that if the fiat system and printing by central banks produces inflation, moving to a system with Bitcoin as legal tender would reduce inflation, which has its logic and is partially true, but it is too simplistic because one could not move overnight from one to another system and does not take into account other possible causes of inflation such as energy prices.

Surely, your country's economy won't improve all of a sudden just because Bitcoin is implemented as a legal tender. But as far as cost of living is concerned, in an unlikely scenario that Bitcoin replaces fiat altogether, I think we will have a deflationary economy rather than an inflationary one. A currency that has a fixed supply, if not decreasing, versus a free-market demand that is ever growing, the prices of goods and services could only go down in terms of Sats.

The cost of living in your country is caused by different economic problems. Inflation, low demand for national currency, political instability, etc might be some of the factors affecting your country. Until some of these problems are fixed, Bitcoin might have no positive effect on the economy. People will still have to pay more for goods and services with Bitcoin if the country is going through inflation.

Your country might benefit from Bitcoin if they buy the currency and keep it for a long time. They could make a profit that can be used to tackle other economic problems. Bitcoin adoption could also attract some investors and create few jobs in your country. It could also help to reduce the cost of international financial transactions since it could bypass SWIFT and other international payment channels.

How can Bitcoin reduce cost of living in your country?

If you use Bitcoin as your payment method, on chain, for living expenses, you will have to pay usually expensive on-chain transaction fee. By using it as daily payment, you will pay more fee than with fiat currency through bank transfer or with cash.

Bitcoin is not here to solve problems from fiat currencies or to reduce cost of living in any country.

At first i won't say that adopting bitcoin is bad but we must know that bitcoin is not the cause of inflation in our country and even though bitcoin is accepted as legal tender what changes does it cause over our dying economy?
Nothing changes, we import and export through dollars and we aren't gonna use bitcoin for that, even as that while using bitcoin the quantity or units would always be measured with dollars; I mean if you importing a goods worth $30k the conversion rate will be, BTC/USDT and then USDT/NGN so we still bounce back same place we are. We can't do without Fiat and fiat is everyone's local spending and not bitcoin, bitcoin is just a vessel to scale up transaction.

Wouldn't the price just naturally adjust? I think the "lowered cost of living" part is due to how Bitcoin has its own economy (unlike the dollar) but in the end, wouldn't the price automatically adjust to the usual high prices? Heck it might even be higher just so that merchants can accommodate the variances that Bitcoin has, which in most cases can be pretty high.

To compare, it's not like your $80 would change when converted to Bitcoin, it's still worth $80 at that point. And as for looking at prices with Bitcoin, as I said, it would naturally adjust according to whatever dollar equivalent it has, say $10, then no matter the BTC price, it'd always equate to $10 at the end of the day. I also don't see it realistic to put the entirety of your money as Bitcoin due to the high volatility, regardless of however much profit you can possibly make off of it since at the end of the day, it's just a "possibility".

The fees of transaction for Bitcoin varies and that's the reason why many retailers will simply accept it whenever it's low but they always have an option to do LN. Although the payor will still shoulder the fees, many don't want to learn on how to use Bitcoin as a payment.

If you think that using Bitcoin as a legal tender can decrease the price of goods in your country. Maybe it won't still be if those products are imported and there's a huge cost coming from delivering it from point a to point b.

While a country's economic status is dependent to the leadership and how your country is being managed and helped. Having Bitcoin as a legal tender won't solve everything on an instant.

What makes you think that Bitcoin is the best option to use when the expense or cost of living is at its peak or expensive?. I don't think that's true because it didn't do anything in my country about the expenses of living but it did help me in some way but if you are talking about making money in Bitcoin then what I can say is that it isn't a good choice to make it your main source of income to be used for daily expenses because it is not a get rich quick scheme because it will take time and patience before it will happen.

Bitcoin can do nothing to reduce the cost of living, it's a digital currency which as you described is decentralized and a good store of value. Economies of nations are more complex than simply waving a magic wand and fixing it just like that, there needs to be good fiscal policies put in place and time allowed for growth.

On a side note, high cost of living is not always telling of a poor economy. There are countries with thriving economies but a very high cost of living.

For sure, Bitcoin doesn't solve every money problem. For people who can already make money, but don't make enough to save any money, Bitcoin can't do anything for them. Bitcoin is a great solution for a lot of problems, but it doesn't fix every single money problem in the world. It's just a currency. A lot of money problems have nothing to do with the currency, but rather with the economy/politics/culture/etc.

Bitcoin is not the solution to your nation’s economic problems. Do not be delusional, bitcoin is not magic money that can help get rid of poverty. El Salvador made bitcoin a legal tender and invested heavily in Bitcoin yet the investment has not changed the conditions of those living below middle class. Bitcoin just crossed $50k, how do you suppose people who can’t afford to care for themselves to have enough spare money to invest in Bitcoin? What your country should focus on is their production capacity and implement policies they will help reduce inflation.  

Its is through our decision making that we go through what we desire in the financial economy, we are quite well aware that a lot of people are struggling with the financial economy due to impeding inflation rate and the only means not to be affected is by getting our self the best alternative currency that could not suffer the injury other people are having currently with fiat, bitcoin can offer you the very best of choice in a decentralized  p2p network, all it takes is to understand how and learn the means to enjoy the benefits in bitcoin adoption over fiat.

Banknote and Digital Currency {Bitcoin} are all meant to buy things both in physical shops and online vendors. And countries are trying to adapt to the adoption of the digital currency upon all the restrictions many had laid on it but seen the benefits of it, some lift up the ban.

And many people were excited because bitcoin is decentralized and out of government control and bitcoin is volatile and it is store of value. So people became conscious and like bitcoin the more. If bitcoin transaction is low and retail businesses accept bitcoin as a method of payment. Dollar does devalue bitcoin so the price of things will not be influenced by dollar anymore. But the international market might still affect the price of things because there they would still used dollar for exchange unless the vendors are accepting bitcoin at that level as well. In my own understanding if bitcoin is adopted as a legal tender in my country the cost of living will reduce. The cost of in my country is on the peak that those who are receiving $80 as salary is nothing but a peanut which can't buy anything reasonable in the market again. Dollar is just playing with the Banknote in my country. And the best way is for the retail businesses to accept bitcoin if the transaction fee is low so that things will be okay for the poor. I am very happy that within this almost one year period I was not in the forum, I have invested some reasonable amount of bitcoin.
Welcome Back to the forum.

DiMarxist.