Yeah, of course, it can play a role. But I'm afraid it cannot transform a poor country into a global economic power. But while it cannot carry an economy from rock bottom to great heights, there are vital roles it can play in it. 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.
Anyway, I think this has been discussed numerous times in the past. You might want to search for similar threads to read more opinions.
Anyway, I think this has been discussed numerous times in the past. You might want to search for similar threads to read more opinions.
In theory it sounds very reasonable but think about it, the value of bitcoin is very volatile. If a country uses bitcoin as a substitute for fiat currency and the value of bitcoin plummets by about 50%, that economy will face collapse. Similarly, just like abandoning the gold standard, although it will cause inflation to increase, continuing to keep the gold standard will inhibit the development of the world economy. We will not have enough gold to print money while the population is growing and supply and demand are increasing.
The GDP of the world economy today exceeds 100 trillion USD, while the capitalization of gold is only 16 trillion USD and if we still keep the gold standard. Our economy will not be able to achieve the achievements it has today. It can be said that everything has advantages and disadvantages, and we need to sacrifice one to choose the other.
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.
I think the world would have been better off keeping the gold standard. You make it appear as if we owe to the abandonment of the gold standard that we have a robust economy today. I don't agree. There's nothing to be proud of. The golden age of human civilization was during the gold standard. It's the time when science, art, technology, and so on started to flourish. Whatever we're building on now, they're the solid foundations laid during the gold standard era.
