Can bitcoin have a positive effect towards a country facing recession

laylagur

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Quote from: DaNNy001 on November 10, 2022, 02:33:41 AM

My region has been deep into economic instability and facing economic crisis in various aspects and I want to know if there is any way bitcoin or crypto currency can help resolve the problems and revive the economy? I know that bitcoin didn't come to the world to take over fiat currency but is there anyway bitcoin can resolve it?

Many small countries, or developing countries, are trying to get out of this predicament with Bitcoin. To put it more directly, a country uses Bitcoin as legal tender more to get rid of the economic constraints and economic sanctions of the United States. But at present, there will not be a big change immediately. In essence, it is still the power of weapons. It is not shy to say that the United States is the country that has launched the most wars in the world, because this can effectively maintain the stability of the dollar and thus maintain the status of the United States as a powerful country.

iamsange

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Quote from: kapalmabur on November 10, 2022, 04:39:24 PM

When a crisis occurs of course it is a natural thing if someone is looking for a stable asset to secure it,
and Bitcoin is not included in that category because crypto is very volatile and the risk is big

There are also cryptocurrencies whose prices are stable and safe to use in terms of securing assets. These are stable coins like usdt, busd, usdc and others which have been on the market for a long time and are widely used by everyone to secure existing assets. Because the stable coin that I mentioned, the price is not so fluctuating, so it can be an alternative for everyone in terms of securing their assets and does not have big risks like other coins.

TelolettOm

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Bitcoin is made to solve the economic crisis, it is only made to help people to manage their own money. Someone can get profits or earn money from investing and trading Bitcoin, but it doesn't mean solving a crisis. If you expect Bitcoin to solve the economic crisis, it is unlikely to happen because the government doesn't trust Bitcoin. What we can get from Bitcoin is an extra income, it can add some money to our finance.

DrBeer

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This is not the first time I have asked the same question. No one ever answered him.

Question: explain what processes, in your opinion, will be launched by bitcoin, and how these processes will be provided if the country has inflation / collapsing economy / unstable situation / crisis of governance or other problems?
How, and in what way, a virtual currency that is not actually backed by anything, and is not legal tender, can help the economy, and solve problems? Only a request - if you give evidence - be sure to describe the complete logical chain of these processes! I really hope that someone will surprise me with a reasoned answer!

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Quote from: DaNNy001 on November 10, 2022, 02:33:41 AM

My region has been deep into economic instability and facing economic crisis in various aspects and I want to know if there is any way bitcoin or crypto currency can help resolve the problems and revive the economy? I know that bitcoin didn't come to the world to take over fiat currency but is there anyway bitcoin can resolve it?

Can bitcoin have a positive effect? Yes, will that effect be significant? This is unlikely, unless bitcoin is widely adopted on the country in which you live the effect of bitcoin will be minimal, however for the few fortunate people which have bitcoin then it could have important benefits but only if they can keep holding their bitcoin until the next bull run, something which will be difficult to do for most people as they have to pay for their needs, utilities and debts.

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Quote from: DaNNy001 on November 10, 2022, 02:33:41 AM

My region has been deep into economic instability and facing economic crisis in various aspects and I want to know if there is any way bitcoin or crypto currency can help resolve the problems and revive the economy? I know that bitcoin didn't come to the world to take over fiat currency but is there anyway bitcoin can resolve it?

No! Bitcoin is not a magic wand which will be able to solve an economic problem or instability. Rather bitcoin is more unstable than any other fiat currency. Its price moves from one pole to another in a matter on minute. So when it comes to stability, bitcoin is not a great choice to be made.

Bitcoin can do wonder only if you can hold it till the next bull cycle and get out at a correct time. Bitcoin can help where there is no banking service. Bitcoin can help the people to pay and get paid digitally. When it comes to resolving the financial issues, an economist will be a better choice rather than adopting bitcoin.

Hydrogen

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Quote from: DaNNy001 on November 10, 2022, 02:33:41 AM

My region has been deep into economic instability and facing economic crisis in various aspects and I want to know if there is any way bitcoin or crypto currency can help resolve the problems and revive the economy? I know that bitcoin didn't come to the world to take over fiat currency but is there anyway bitcoin can resolve it?

Regions like venezuela were able to mine bitcoins using free electricity generated by hydroelectric dams.

Areas of africa which have a high level of infrastructure support for cellphone based payments were able to utilize bitcoin and crypto as alternate methods of payment.

Countries like cuba once enjoyed bitcoin as a means of sending payments home to families in the country.

Nations like vanuatu have offered tax free citizenship for crypto whales who can afford the high cost of expense.

The claimed 4 billion unbanked demographic around the world have been said to be one key reason behind bitcoin's global mass adoption.

There are historical road maps for how bitcoin has helped various places around the world to boost their local economies. Perhaps your region can follow a pre established trend. It all depends on local circumstances.

kapalmabur

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Quote from: noorman0 on November 10, 2022, 10:03:37 AM

Bitcoin can also be impacted by economic instability, even more so for several countries at once. People believe more in stable assets when a crisis hits their country, bitcoin is not in this category.
Bitcoin may only offer individual opportunities where you can earn cross-border to support your expenses. But here bitcoin is only conspicuous in the mechanism, the main key is how you get bitcoin is beyond your scope.

When a crisis occurs of course it is a natural thing if someone is looking for a stable asset to secure it,
and Bitcoin is not included in that category because crypto is very volatile and the risk is big

CageMabok

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Quote from: DaNNy001 on November 10, 2022, 02:33:41 AM

My region has been deep into economic instability and facing economic crisis in various aspects and I want to know if there is any way bitcoin or crypto currency can help resolve the problems and revive the economy? I know that bitcoin didn't come to the world to take over fiat currency but is there anyway bitcoin can resolve it?

Regarding economic problems in all parts of the world, it is clear that Bitcoin cannot solve all the economic problems that exist in every country unless all governments want to buy Bitcoin and legalize Bitcoin into the payment system. Because Bitcoin only helps everyone who believes in profit when they buy at a low price, so they can overcome the problems they face in their own environment.

As for tackling the problem of an unstable economy in a larger scope, I don't think it's Bitcoin's job because Bitcoin was not created for that. But Bitcoin is here to accompany everyone who doesn't hesitate to continue to have it all the time so that they can benefit from it, indeed in general you can use Bitcoin to invest and try to make a profit, but basically you also need to be patient and also have to be prepared with the risk.

DaNNy001

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Quote from: TheUltraElite on November 10, 2022, 09:50:17 AM

Sorry to hear about your regions bad conditions and I hope things get better gradually.

Bitcoin was created to counteract inflation and to bring the power back to the hands of the people instead of the banks. In case of a recession every commodity is going to be affected be it bitcoin or non-crypto. Because the people who are spending money to buy/sell them are also facing the same recession.

What you can do is cope with the current situation at hand, depending on where you live, it might be impossible to relocate, try to get a job or run a business from whatever you have at hand. Dont look at high risk investments at this point, thats suicide.

I suppose that's the only option because things are really hard and adapting is what we over here have been doing and will keep doing until we get out of the dark hole we have found ourselves

Zaguru12

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Bitcoin cannot save a country facing recession although could help solve save some fiat devaluation issue. It can serve as a store of value so if the countries currency continues to devalue one could make store in btc, although right now is certainly bad to give this kinda of advice but its still the best option out of it.

For countries where it is lurking, rather to save in fiat one could save in bitcoin and its current price is even great to cash on

noorman0

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Bitcoin can also be impacted by economic instability, even more so for several countries at once. People believe more in stable assets when a crisis hits their country, bitcoin is not in this category.
Bitcoin may only offer individual opportunities where you can earn cross-border to support your expenses. But here bitcoin is only conspicuous in the mechanism, the main key is how you get bitcoin is beyond your scope.

TheUltraElite

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So anyway, I applied as a merit source :)

Quote from: DaNNy001 on November 10, 2022, 02:33:41 AM

My region has been deep into economic instability and facing economic crisis in various aspects and I want to know if there is any way bitcoin or crypto currency can help resolve the problems and revive the economy? I know that bitcoin didn't come to the world to take over fiat currency but is there anyway bitcoin can resolve it?

Sorry to hear about your regions bad conditions and I hope things get better gradually.

Bitcoin was created to counteract inflation and to bring the power back to the hands of the people instead of the banks. In case of a recession every commodity is going to be affected be it bitcoin or non-crypto. Because the people who are spending money to buy/sell them are also facing the same recession.

What you can do is cope with the current situation at hand, depending on where you live, it might be impossible to relocate, try to get a job or run a business from whatever you have at hand. Dont look at high risk investments at this point, thats suicide.

Yatsan

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An economic recession is the increase with unemployment due to the decline on economic activity. So how come Bitcoin would aid this problem? Most of the people will have no job ef there is a recession, so when would they get money to invest in cryptocurrencies? Also, would it be an assured profit? Ofcourse not. It could either bring temporary food on their tummy or leave them in huge debt from enduring market downfall. Many people are confused with how investment and this industry in general works. There's still that stigma that once you've invest not only in bitcoin but also other tokens, you'll earn profit easily. Think of how many investors gave up and reflect why did they quit if it is an easy money.

Quote from: woez on November 10, 2022, 04:00:59 AM

When a country or economy faces a recession, recovery will be difficult to achieve. Although by introducing bitcoin, it can help in fighting the economic crisis and boosting the development economy.

We have to ask how it can help if put into practice and How did the government introduce bitcoin,?

The spirit of fiat to bitcoin transfers for a country facing an economic crisis is a big thing and must take on political responsibility and not just technology/systems.

Government won't introduce Bitcoin to their people during recession. This technology is free of tax, governments won't make use of it. Even if they would use third party wallet or banks accepting cryptocurrencies, do you think investors would comply using that 'bridge'? There are other ways to get their money from this industry. For sure they'll avoid being taxed by the government, which closes the idea or tendency for such plan to work.

imamusma

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Bitcoin is simply a really good option for both institutional and individual investment assets. I'm not sure bitcoin will reduce the impact on the deteriorating economic conditions of a country, but to some extent bitcoin has helped its users to reap the benefits. This will help users earn profits which in turn can give them financial stability, but volatility often creates a lot of problems for those who have no control over their assets.

Bitcoin won't be very positive about the impact of a country's recession, but it will probably be the best option for those who really care about a good store of value instead of fiat.

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Quote from: DaNNy001 on November 10, 2022, 02:33:41 AM

My region has been deep into economic instability and facing economic crisis in various aspects and I want to know if there is any way bitcoin or crypto currency can help resolve the problems and revive the economy? I know that bitcoin didn't come to the world to take over fiat currency but is there anyway bitcoin can resolve it?

It will be one of the ways to make someone's living go up. But to be whole dependent to bitcoin for your entire economy to get up, it won't be enough.

Bitcoin won't be the only thing that will help to resolve that. If we're talking about an economic crisis then it's going to be composed of many sectors that has to help each other.

But that's a good thought that you have as it means you're really believing on it so we does. But, we have to embrace the reality that it's just not enough.

Husires

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Suppose that the market is in its best condition and the market capacity is about 2 trillion dollars, and if we compare this price with:

Fiat Market Capacity: USD 23 T, EUR 14 T, GBP 4 T
Gold Market Capacity: $11.280 T
Silver Market Capacity: $1.188 T

Sources: https://companiesmarketcap.com/fiat-chrysler-automobiles/marketcap/ , https://coinmarketcap.com/fiat-currencies/

we have not mentioned the real estate market, debt, or stocks, and therefore one trillion does not make a difference to the global economy, but it constitutes a change in most of the gross domestic product of many countries and individuals.

woez

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When a country or economy faces a recession, recovery will be difficult to achieve. Although by introducing bitcoin, it can help in fighting the economic crisis and boosting the development economy.

We have to ask how it can help if put into practice and How did the government introduce bitcoin,?

The spirit of fiat to bitcoin transfers for a country facing an economic crisis is a big thing and must take on political responsibility and not just technology/systems.

Smartprofit

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Quote from: DaNNy001 on November 10, 2022, 02:33:41 AM

My region has been deep into economic instability and facing economic crisis in various aspects and I want to know if there is any way bitcoin or crypto currency can help resolve the problems and revive the economy? I know that bitcoin didn't come to the world to take over fiat currency but is there anyway bitcoin can resolve it?

While Bitcoin does not solve all the economic problems that arise in different countries.

The first cryptocurrency very well helps to overcome the sanctions associated with the ban on the use of settlements in dollars and euros, as well as the freezing of settlement bank accounts. Bitcoin is innovative money, this is what encourages people to use Bitcoin in certain situations.

At the same time, the reasons for the economic problems of states may not be in the monetary plane, but have other fundamental reasons. In this case, Bitcoin will not be able to help resolve the situation.

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You should probably take a look at what's happening in El Salvador and the direct/indirect effect of making BTC their legal tender. You can find several articles online and most of them are pointing out an increase in crypto remittances and tourists as the positive effects. If you're from a developing country, improvements in those two areas will most likely help your Government in fighting the economic recession.

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