Topic: Bitcoin - New form of Budget for poor countries (Read 722 times)

Understood. China is the biggest example of this scenario and the only solution is the people’s revolution toward this kind of oppression but that is more than impossible as they’re citizens are bound to follow most of the time to this strong government. But I stilll believe that soon it would be realized by them as it always be for what is best for individual financial freedom that might also help the economy of one country.

I agree with you. It's possible that right when you get this decentralized currency you end up with people having more power which a government might be opposed to. With stronger centralized governments in places like China etc. We've already seen some opposition to the idea of crypto currency and power to the people. If people are able to convince their governments that Bitcoin can do good for the country, it's possible that it'll be accepted, but I think we're pretty far from there right now.

I have no objection to the idea but just hoping alone that the government will encourage they’re people to this investment is the big question. As long the mainstream adaptation and without the support in legal side by the same public officials that is totally or mostly corrupt and puppets of our financial banking system is an hopeful statement.

True, but while the volatility of bitcoin is an issue right now that is no longer to be the case when bitcoin is adopted by a significant amount of people in the future, and when that happens the economy of the world is going to enter an era of stability similar to what happened with the gold standard, we are far away to reach that point in time but at some point we are going to reach it.

Economic welfare is to be governed by traditional ways of education and active contributory citizenship. This essentially is first a leadership initiative. There can be no shortcuts for development. The governments that face financial crunch can try investing in bitcoins or utilize cryptocurrency to ease the economic burden by providing an alternative to its citizens, but this should not be a direct form of investment.

It may be one of the schemes temporarily in the budget for investment. Further, generating ICOs should be targeted. Betterment comes through overall improvement in living rather than just an economic growth. Education, character, morality, responsibility, discipline and economic progress will have to go together.

I agree with KwiatzHaderach. We all know how advantageous Bitcoin can be which is why we have the tendency to jump into conclusions on how it can truly improve (based on what you wrote) a state of being; in your case the economy. Although the intentions are there, I would have to say that having the government involved with Bitcoino or any other cryptocurrency would not result to what you might have expected. I think Bitcoin and the government just don't go together. Experiencing how a governing unit can be so corrupt, incorporating their works with Bitcoin, something that is so highly volatile, can just boost their greed and worsen the situation of the whole country.

shield132 only saw the gains but failed to see the failure when there are losses, and there will always be losses. What if the price of BTC fell by 2x? That is the national budget cut in half.

Face it, BTC is not stable enough to be a regular currency.

as i know, central bank is not allowed to do something that put high risk to the portofolio of people money
crypto still have alot of trouble for government
if they invest in it, they can not said to the people not to buy it in first place
they are the role of common bank and investor
much country still not allowed to use cryptocurrency in legal transaction
there is so many thread that discuss about it
in the near future... i hope it can be happening

True but they could also lose a bunch this way and because it is a fixed budget they can't afford to do so. I don't agree with the state doing that with the taxpayer's money because that is incorrect on a bunch of levels. However, I do think the citizens in those countries should invest in cryptos because that is likely their ticket out of the gutter. That is the blessing in disguise here with cryptocurrencies lets not lose sight of it now.

Reserves are usually kept in USD, EUR and several other currencies including domestic currency. Most governments also keep part of their funds in gold. Probably sometime in future also cryptocoins will come into play as an asset used to store budgetary means. At the moment i don't think that they see the bitcoin as a good asset for this mainly because of it's volatility. But this might change in the future.

Very good idea. but the policies will be taken by a country should be based on applicable law in that country, and also in relation to the economic policy it is necessary to regulate by law set by the government of that country.

Most likely it will make things worse than using their own traditional fiat, it also strikes my mind that why not let the 3rd world countries make bitcoin as their budget or official currency so that for the time it is doubled, the economy of that country will also expand, positive volatility of bitcoin never fails us that's for sure but still this coin is still running some major problems that need to solve first before engaging in other adaptation, that is a huge gamble and risks.

They couldn't afford bitcoin, maybe some but not a good idea at all. This could make them lost profit when its volatility is too much. Additionally, it is hard for them to learn bitcoin because of limited resources.

Its really hard for that to happens since the awareness of the community specially in poor countries is limited only. Besides, bitcoin is not a survival kit which can be useful in times of crisis. The only thing could be possible to happen with that scenario is to gradually embrace and cultivate their knowledge towards bitcoin for them to have enough knowledge and boost their courage to participate this new kind of technology.

Well, maybe so, only how about recognizing him in such countries. Indeed, few are aware of the crypto-currencies and their influence, the more it is unknown how he can improve people's well-being and worsen. Therefore, it must be taken only in emergency cases, when there is simply no other way out.

This is not a wise choice because the value of bitcoin is constantly changing and it is not a good choice for poor countries.

First, let me just say that not only the "poor" countries could do that.

But taking your point, that is one interesting idea honestly. If the government would set aside a budget for bitcoin, then the initial value would be multiplied  making the budget increase; meaning more budget for the country. That would be the case assuming that the government allows for bitcoin and the bitcoin market is in a favorable circumstance. Otherwise, the initial obstacle would be whether or not the government supports bitcoin.

So let's take one country for example, under ideal setup their budget would increase. The first concern is how the government would then trace or account for the amount of increase in the budget. If corruption happens (hopefully not) a large chunk could also be taken aside and the total amount would not be truthfully reported. The good motivation would then end up in the pockets of the greedy. For the government to prevent this and be transparent with their people, laws and regulations should be created and governing bodies should be strict in the implementation. Next, the country would then be a whale in bitcoin, if the country would then withdraws all of their bitcoin, a huge huge dip would then affect all other individuals partaking in bitcoin.

Taking this in a larger perspective, if all (or most) countries would do this in their budget, one country suddenly withdrawing would also affect one another. Thus, they should come with terms and agreement in this matter.

It's an advantage for those countries, but how about the United States would it be advantageous to them? If then in what way? Since USD is the means of exchange for them to be able to receive imported goods. The leaders of the poor countries can't just stick their nose to Bitcoin easily, they hold the countries future, if so they failed with Bitcoins fall, then they have invested more than half of their wealth then it would be very impossible to them to get back on their knees. It's not an easy decision to make, they would put the lives of their citizen at risk (Poverty).

I think sir you just saying that because you just researched it. You are not in the place of the people in poor countries like me. I am one of the testimony that poor country is hardly to develop specially when it comes in cryptocurrency. I was embarrassed but that is reality. We can't be developed because lots of people don't have educational attainment. Yes, bitcoin helps to improve the way of living but how? Did you think almost people can hold gadgets? No, of course. Our government is corrupt, I never trust if they will integrate bitcoin in our economy.

We could not blame them as this early age of bitcoin most people did not know what is bitcoin or crypto currencies, even me when i was first heard this bitcoin i don't believed already but when i was read and understand it's more profitable then i pursue my self to learned of this.
There are some people can't afford internet connection in their own still they did not know bitcoin what it is.
And about government why against bitcoin because they did not controlled bitcoin or maybe criminal crimes abused bitcoin and they did not traced it.