Can Bitcoin play a role in the country's economic growth? - page 2.

kro55

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Quote from: fullhdpixel on August 22, 2024, 03:11:02 PM

Quote from: kro55 on August 21, 2024, 03:54:59 AM

Quote from: KingsDen on August 20, 2024, 04:28:33 PM

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Unfortunately there are many people who loses money with crypto investment. However, do not consider bitcoin as just an asset to invest into, remember that there is a currency part of it as well. What does that mean?

Just like how you would use fiat as payment, like you go to a shop, buy a shoe, and pay with your card and that means you are paying with fiat, imagine a world where everything you do is the same, you still go to the same shop, and you still buy the same shoe, and you still pay with a card, but instead this time crypto is taken away from your account, could be USDT or any other stable if you must. That is the way you should imagine crypto when you think of growth, because this is global currency and not one nation.

It means that you could work and earn money in crypto, and you could spend crypto and all of those equal to you having something much better. We are going to end up with a greater result, we just need time to make that work somehow.

I don't forget Satoshi's purpose for creating bitcoin was to become a decentralized currency. But even if bitcoin served as a currency, it would not solve unemployment or reduce poverty in a country.

Also, how will we use bitcoin as a currency when not too many countries have legalized it as currency. In my country it is not banned but I have never seen any store accepting bitcoin payments. What about your country?

If you don't use bitcoin and instead use stablecoins as currency, what is the difference here compared to fiat currency? Stable coins like USDT are pegged to USD and use a centralized system. So I don't see any difference in using them as an alternative means of payment, I even have to pay extra transaction fees even for my small transactions. Meanwhile, with bank transfers and cash, I hardly have to pay additional transaction fees.

One more thing, even if cryptocurrency is the world's currency, we still have to work hard to get it, it is not created to be distributed to us for free. Therefore, it cannot help us reduce unemployment, eliminate poverty or help the country's economy develop.

fullhdpixel

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Quote from: kro55 on August 21, 2024, 03:54:59 AM

Quote from: KingsDen on August 20, 2024, 04:28:33 PM

In as much as I believe that bitcoin can play a good role in the economic development of the country, I also acknowledge the fact that it does not have direct impact on the economy since the government are not always not friends to Bitcoin. But then if bitcoin can improve the standard of living of the individual citizens of a country, it will indirectly improve the general economy of the country by fighting against inflation and unemployment.

If government can give free hands for bitcoin to co-exist, it will help the country to be identified in the decentralized financial industry.

That will only be true if everyone who invests in bitcoin makes a profit, but is it easy to make a profit in bitcoin and will no one lose money investing in bitcoin? We need to acknowledge that bitcoin is a financial market and it is a battlefield, where weak hands will become liquidity for diamond hands. That means there will be winners and losers, and how will we improve the economy if we lose money?

Bitcoin is just a currency or volatile asset, it does not create jobs so I do not agree that it will be able to reduce unemployment.
Why do we often say that we should only invest what we can lose or we need a job with a stable income before investing in bitcoin...? Obviously, bitcoin cannot play a role in reducing unemployment when it cannot create jobs.

Unfortunately there are many people who loses money with crypto investment. However, do not consider bitcoin as just an asset to invest into, remember that there is a currency part of it as well. What does that mean?

Just like how you would use fiat as payment, like you go to a shop, buy a shoe, and pay with your card and that means you are paying with fiat, imagine a world where everything you do is the same, you still go to the same shop, and you still buy the same shoe, and you still pay with a card, but instead this time crypto is taken away from your account, could be USDT or any other stable if you must. That is the way you should imagine crypto when you think of growth, because this is global currency and not one nation.

It means that you could work and earn money in crypto, and you could spend crypto and all of those equal to you having something much better. We are going to end up with a greater result, we just need time to make that work somehow.

dezoel

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Quote from: yudi09 on August 20, 2024, 02:40:11 PM

Because the use of Bitcoin can be used as a long-term investment asset because of hedging, it is no wonder that many countries continue to try to adopt Bitcoin in their own way.

Countries using Bitcoin as an investment asset will surely benefit from it if they have blockchain and market experts advising and managing the investments because buying and selling at the right time is the key to making full use of the opportunities to gain as much profit as possible.

If a country is investing at the wrong time and then selling its coins at the wrong time because of the money being reserved for very long, this is only going to make them suffer.

Quote from: Franctoshi on August 20, 2024, 03:01:24 PM

Bitcoin can contribute to a country's economic growth by becoming a country's reserve asset, using El Salvador as a good example, They started buying Bitcoin when it was around $40k, There Bitcoin portfolio would right now be in a good profit, whereas the profit which has been realized can be used to develop the country and the profit be put in the other areas of the economy, thereby boosting the economy of that country.

Using Bitcoin as a reserve currency can have its pros and cons because its price doesn't move in one direction. It's true that if the price of Bitcoin goes up when a country is using it as a reserve, they will have a lot of profit from this, but if the price goes negative, they will lose money, and I don't think a country would be ready to bear that because the money will be in large numbers.

Quote from: Gladitorcomeback on August 20, 2024, 10:21:33 AM

A country that has a government that works only for the people and doesn't have such thoughts might have economic growth using Bitcoin.

As of now, only oil rich countries are doing like you have mentioned. All other countries are becoming tax heavy which means there would be less chances for letting bitcoin grow in their country. Probably government may try to regulate bitcoin in such a way where they could still tax every bitcoin transactions. I am not seeing any possibility for such innovation to become practice. So, growth of bitcoin might remain without the support of governments.

CoinFoxs

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Yes it can play a vital role in the economic growth of developed and developing countries but only when these earnings come directly under the finance department of government. Countries generating revenues by implementing taxes on resident’s earnings. So in this scenario taxes should apply on earnings from bitcoin.

HelliumZ

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Bitcoin definitely plays an important role in the economic development of a country although I live in a country where all activities of Bitcoin are completely banned so I cannot understand the importance of Bitcoin very easily. However, if Bitcoin is approved, the economy of a country will automatically change because if there are tourist areas in those countries where Bitcoin is approved, then if foreigners come to travel to that area, they can easily enrich the economy of that country by making payments through Bitcoin. Moreover, if foreign remittances are sent directly through bitcoins, there will be no other costs that can be easily exchanged with minimal costs. In this way the economy of a country will continue to change which will be easily realized through Bitcoin.

Z-tight

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Quote from: P3Key on August 22, 2024, 06:20:30 AM

Isn't it still quite risky for a country to reserves their fund in BTC? because of its volatility, especially for a third world country, unless the country will hold it with in a very long time.

I don't think it is even so good for countries to have a lot of BTC's in their reserves, yeah i know the network is censorship resistant and anyone can buy BTC, but governments are centralized and if they control a lot of the BTC's in circulation, it may not be good for the decentralized network, and could leave it open to manipulation. However, i don't even think too many countries are interested in storing BTC in their reserves, it is decentralized and it cannot be printed nor controlled, so it is not an asset they may be interested in.

legendbtc

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Quote from: Darker45 on August 20, 2024, 10:40:11 PM

It is volatile, meaning it could go down today, go up tomorrow, go down the day that follows, go up again, and so on. We know, however, that it's generally rising. But that may be still bad for an economy. However, that's certainly better than rotten currencies that register double figures of inflation consistently year after year. That's more effective in killing an economy. That would leave our streets literally littered with worthless money.

What will happen to the economy if that country uses bitcoin as a substitute for their fiat currency and the bear season lasts for many years, bitcoin drops more than 70% in value like the 2022 bear season? El Salvador is the only country that accepts bitcoin as legal tender, but did you know that it is only a second currency because they still use USD as their primary currency? Why don't they completely abandon USD and just use bitcoin?

I agree with you, many countries' currencies are losing value day by day and many countries are having 3-digit inflation. But do you agree that many countries like the US, China, Australia...many other countries are still controlling their economies well? I bet you we will never see USD flooding the streets like currencies like Zimbabwe's ZWL or Venezuela's VEN. That means the health of the economy is what determines the value of the national currency.

A country falls into poverty because the government is corrupt, the government do not care about people's lives, causing people to fall into poverty and unemployment.What problems will the adoption of bitcoin solve while it cannot solve corruption, unemployment...?

Blitzboy

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Bitcoin wont save an economy alone. Its simply one tool. A nation requires strong economies, competent policies, and diverse investments. Bitcoin may help, but its not enough. Consider El Salvador. They embraced Bitcoin. Thats risky and daring. Crypto volatility must be managed. Finding the correct balance between innovation and stability is key.

Remember financial inclusion. Bitcoin's potential to empower the unbanked is great. The situation is more complicated. You need knowledge, infrastructure, and wise policies to succeed. Otherwise, other issues may arise.

Am I Bitcoin bullish? Absolutely. Lets be real. Nothing magical about it. It can help you win if applied appropriately. Just one portion. Rest is up to us. We must strengthen economies, make sensible policies, and invest in people. Thats how we win.

P3Key

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Isn't it still quite risky for a country to reserves their fund in BTC? because of its volatility, especially for a third world country, unless the country will hold it with in a very long time. When it comes to a country's BTC reserve, we are talking about million dollars, the loss which cause of its volatility could be quite a gambling. Besides that, the country have to consider the public opinions that are coming from its own people. I think its all coming down to most of its people's opinion that will drive the government to follow tho motion of having BTC reserves.

kro55

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Quote from: Helena Yu on August 21, 2024, 04:27:47 AM

Quote from: kro55 on August 21, 2024, 03:54:59 AM

Bitcoin is just a currency or volatile asset, it does not create jobs so I do not agree that it will be able to reduce unemployment.
Why do we often say that we should only invest what we can lose or we need a job with a stable income before investing in bitcoin...? Obviously, bitcoin cannot play a role in reducing unemployment when it cannot create jobs.

You're correct.

I guess he think Bitcoin can reduce unemployment because he's participating in signature campaign where it paid in Bitcoin, but he forget if there are no signature campaign, he will not able to get paid in Bitcoin anymore. Let's say that most campaign choose to send the reward in USDT, ETH, etc, it doesn't mean USDT or ETH reduce the unemployment, instead it's the signature campaign.

Strictly speaking, the forum is creating jobs and bringing us income, not bitcoin or any other altcoin. People not only misunderstand but even make exaggerated claims about bitcoin claiming that it can play an important role in reducing unemployment or helping improve a country's economy.

So far, it cannot be denied that many people have made profits from bitcoin but we need to note that not all. There are also many people who lost money and even went bankrupt when investing in bitcoin. How can it be considered a tool to help improve the economy when it only plays the role of a speculative asset? Or when it is used as a currency or payment method, if there are no jobs and we are not working then who will pay us in bitcoin?

Marvell1

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Quote from: Z-tight on August 21, 2024, 12:07:48 PM

Quote from: Darker45 on August 20, 2024, 08:34:06 PM

For one, to replace a local fiat that's losing so much value every single day with Bitcoin is already a big help to the economy.

I don't believe that taking fiat or money out of the economy and buying BTC with it is a big help for the general economy, yeah it can help a person to hedge their funds against inflation, but it does not help the economy, or at least i don't see how it does.

The origin of inflation is due to the imbalance between supply and demand, the Government's economic policies are not appropriate...causing heavy damage to the economy and they are deadlocked in solving the problem. In the end, they chose to print money to solve those problems, and things will become more serious if they do not change their economic policies and just focus on continuing to print money.
In this case, there would be no point in replacing fiat with bitcoin but if they couldn't address the imbalance between supply and demand, and things would collapse even sooner if they couldn't print more money.
To be fair, I still don't see how bitcoin can play any significant role in a country's economy, let alone the global economy.

Z-tight

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Quote from: Darker45 on August 20, 2024, 08:34:06 PM

For one, to replace a local fiat that's losing so much value every single day with Bitcoin is already a big help to the economy.

I don't believe that taking fiat or money out of the economy and buying BTC with it is a big help for the general economy, yeah it can help a person to hedge their funds against inflation, but it does not help the economy, or at least i don't see how it does.

Quote from: Luzin on August 20, 2024, 07:41:41 PM

It is quite difficult to start a new habit. I think El Salvador needs a fair amount of time for full adoption.

Maybe, but i don't see any sign that BTC will be widely used in El Salvador, i think the citizens over there have bigger problems, but we would see how things develop in the future.

laijsica

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Quote from: Spaceman1000$ on August 21, 2024, 03:20:50 AM

Quote from: laijsica on August 20, 2024, 05:42:13 AM

Bitcoin can potentially play a role in the economic growth of a country which can make a huge difference in the multifaceted progress of that country. If Bitcoin can be integrated with the way in which the traditional financial system of the country is growing, the global economic system can be radically changed.
Here are some recommendations:

Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.

Financial inclusion of common people: Bitcoin can contribute to the economic growth of a country by including a large population by opening access to savings and buying and selling beyond the limited services like conventional banking system.

Exchange of Remittances: Remittances are very important for the progress of a country. Bitcoin can play a real role in reducing the fees and time of traditional services when citizens of one country send remittances from another country.

From an overall perspective, a country can explore Bitcoin with their economy in the light of wide knowledge of the strategies to increase the holding and increase the scope of transactions and access to the exchange, which can contribute to the growth of that country in a big way.

Looking forward to your more recommendations.

I think one of the major roles bitcoin can play with regards to the growth of a countries economy, is to help reduce corruption in government parastatals, hence the government can make policies that will make their transactions in terms of finance be on bitcoin, it will help citizens and even the government itself to monitor the transactions of government agencies and parastatals on how they make their expenses, once budgetary allocations has been made to them, both government and citizens can easily monitor this transaction on Blockchain, hence it will help increase efficiency and accountability on the part of government, that way officially corruption will drastically reduce.

Bro here we are far away from the effectiveness of bitcoin to reduce corruption, we are mainly discussing how to strengthen the pursuit of bitcoin for the economic progress of a country. In the modern world, various inventions are being made using blockchain technology and multifaceted technology can develop in important different sectors of a country, for example, by combining the use of blockchain with artificial intelligence (AI), it is possible to make major development in the information technology sector, which can play a leading role in the economy of that country. In addition to the medical field, in the construction of a modern city, the global supply chain management has a much wider scope that the military and civilian sectors and etc.
In addition, in the future, blockchain technology can be used to develop more innovations that can open up new horizons.

Iranus

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Quote from: $weetne$$ on August 21, 2024, 05:05:34 AM

Quote from: retreat on August 20, 2024, 11:18:58 PM

On one hand I think that Bitcoin is a reliable, secure, and privacy enhancing transaction system, but when it is brought to a higher level, such as a country's economy, maybe we need to look at a different perspective where Bitcoin is not that great to be a contributor that can be counted on.

Very true with every thing that you have said and do not disagree with anyone, Bitcoin was not created to be the reason for any economy growth of any country that is why it was made to be decentralized and not centralized. For countries to make use of Bitcoin, they have to centralized it in some way and that is by making use of centralized platforms like exchange and wallets. Bitcoin was made for individual purpose and that is why the real benefits of Bitcoin can be seen. Any country that is having difficulties in their economy should figure out a way to help their economy and not depend on Bitcoin because Bitcoin can not save them. If the politicians can not figure out ways to save their economy, they should quit and leave the office for people with ideas that they can use to save their economy.

Bitcoin was not only created so that individuals can use it, but organizations, corporations or even countries can use it as a currency or payment method. But if they use it to solve a country's economic problems then that is impossible because it is not bitcoin's responsibility nor does it have the ability to do that. Did we see Satoshi mention that in the white paper?

Just because we are profiting from bitcoin investments and rush to assert that bitcoin will also have the ability to rescue a country's economy. That is a completely wrong thought because the national economy is not as simple as an individual or an organization, everything is more complicated than we think.

A country's economy will depend on its geographical location, mineral resources...especially the leadership and administration of the Government. We cannot rely on a volatile asset to solve a country's economic problems, as ridiculous as that sounds. Not to mention each economy will have its own difficulties and challenges, we need to find out the causes before offering solutions, don't blindly offer solutions.

Onyeeze

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The answer is Yes, Bitcoin can make a good impact for economic growth of a country, the thing is that if a country accepts bitcoin they will make out good of bitcoin, if you calculated from when bitcoin started till date or when bitcoin started to have a dominance you will know that people who invested millions of Dollars in bitcoin Is now counting in trillion, for the little time bitcoin has used to increase, I think people that invested on it has realised a profit, so if individual can make a profit through bitcoin and is contented with it base on the amount used for investing in bitcoin, government can also boasts their economy through such investments, the thing that's making some of the countries government not to invest in bitcoin is because of initial criticism they have tender to them before now of bitcoin

$weetne$$

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Quote from: retreat on August 20, 2024, 11:18:58 PM

On one hand I think that Bitcoin is a reliable, secure, and privacy enhancing transaction system, but when it is brought to a higher level, such as a country's economy, maybe we need to look at a different perspective where Bitcoin is not that great to be a contributor that can be counted on.

Very true with every thing that you have said and do not disagree with anyone, Bitcoin was not created to be the reason for any economy growth of any country that is why it was made to be decentralized and not centralized. For countries to make use of Bitcoin, they have to centralized it in some way and that is by making use of centralized platforms like exchange and wallets. Bitcoin was made for individual purpose and that is why the real benefits of Bitcoin can be seen. Any country that is having difficulties in their economy should figure out a way to help their economy and not depend on Bitcoin because Bitcoin can not save them. If the politicians can not figure out ways to save their economy, they should quit and leave the office for people with ideas that they can use to save their economy.

Helena Yu

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Quote from: kro55 on August 21, 2024, 03:54:59 AM

Bitcoin is just a currency or volatile asset, it does not create jobs so I do not agree that it will be able to reduce unemployment.
Why do we often say that we should only invest what we can lose or we need a job with a stable income before investing in bitcoin...? Obviously, bitcoin cannot play a role in reducing unemployment when it cannot create jobs.

You're correct.

I guess he think Bitcoin can reduce unemployment because he's participating in signature campaign where it paid in Bitcoin, but he forget if there are no signature campaign, he will not able to get paid in Bitcoin anymore. Let's say that most campaign choose to send the reward in USDT, ETH, etc, it doesn't mean USDT or ETH reduce the unemployment, instead it's the signature campaign.

kro55

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Quote from: KingsDen on August 20, 2024, 04:28:33 PM

Quote from: uneng on August 20, 2024, 04:12:39 PM

Bitcoin can help the economy of a country by simply allowing its citizens to have access to a profitable investment which works against inflation on long run, while giving citizens access to the global and decentralized crypto market where there are extra jobs opportunities. It means people don't have to be restricted to their local economies which are usually limited and jobs scarce. Not that internet is heaven and everyone can get rich immediately here, but at least there it's a wider environment with more opportunities and offers.

With the income you can make online through Bitcoin, it's possible to improve your life quality and to raise enough money to start another investments in real world which you didn't have any means before, due to the lack of profitable investments alternatives and lack of jobs offers.

You are right mate. In as much as I believe that bitcoin can play a good role in the economic development of the country, I also acknowledge the fact that it does not have direct impact on the economy since the government are not always not friends to Bitcoin. But then if bitcoin can improve the standard of living of the individual citizens of a country, it will indirectly improve the general economy of the country by fighting against inflation and unemployment.

If government can give free hands for bitcoin to co-exist, it will help the country to be identified in the decentralized financial industry.

That will only be true if everyone who invests in bitcoin makes a profit, but is it easy to make a profit in bitcoin and will no one lose money investing in bitcoin? We need to acknowledge that bitcoin is a financial market and it is a battlefield, where weak hands will become liquidity for diamond hands. That means there will be winners and losers, and how will we improve the economy if we lose money?

Bitcoin is just a currency or volatile asset, it does not create jobs so I do not agree that it will be able to reduce unemployment.
Why do we often say that we should only invest what we can lose or we need a job with a stable income before investing in bitcoin...? Obviously, bitcoin cannot play a role in reducing unemployment when it cannot create jobs.

Spaceman1000$

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Quote from: laijsica on August 20, 2024, 05:42:13 AM

Bitcoin can potentially play a role in the economic growth of a country which can make a huge difference in the multifaceted progress of that country. If Bitcoin can be integrated with the way in which the traditional financial system of the country is growing, the global economic system can be radically changed.
Here are some recommendations:

Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.

Financial inclusion of common people: Bitcoin can contribute to the economic growth of a country by including a large population by opening access to savings and buying and selling beyond the limited services like conventional banking system.

Exchange of Remittances: Remittances are very important for the progress of a country. Bitcoin can play a real role in reducing the fees and time of traditional services when citizens of one country send remittances from another country.

From an overall perspective, a country can explore Bitcoin with their economy in the light of wide knowledge of the strategies to increase the holding and increase the scope of transactions and access to the exchange, which can contribute to the growth of that country in a big way.

Looking forward to your more recommendations.

I think one of the major roles bitcoin can play with regards to the growth of a countries economy, is to help reduce corruption in government parastatals, hence the government can make policies that will make their transactions in terms of finance be on bitcoin, it will help citizens and even the government itself to monitor the transactions of government agencies and parastatals on how they make their expenses, once budgetary allocations has been made to them, both government and citizens can easily monitor this transaction on Blockchain, hence it will help increase efficiency and accountability on the part of government, that way officially corruption will drastically reduce.

retreat

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On one hand I think that Bitcoin is a reliable, secure, and privacy enhancing transaction system, but when it is brought to a higher level, such as a country's economy, maybe we need to look at a different perspective where Bitcoin is not that great to be a contributor that can be counted on. It is true that Bitcoin can provide taxes to the country and more or less can help the economic growth of a country, but in a larger context Bitcoin is still unable to provide an impact on improving the economy, because in that case there are many things that need to be considered, and the use case of Bitcoin is also limited which makes it still limited to trading and people's transactions.

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