Topic: Can Bitcoin play a role in the country's economic growth? (Read 778 times)

The economy of a country mainly depends on the manpower, especially the more productive the manpower, the more economically prosperous the country will be. I would not consider a country's economic prosperity to be directly dependent on Bitcoin, but if Bitcoin is legalized in that country, it will certainly be correlated with that country's economic prosperity. If the bank approves Bitcoin, then if the foreign remittance is exchanged through the bank, the government will definitely get a certain part from Bitcoin, that will be one of the ways to increase the economic prosperity of the country.

They don't care about bitcoin, they don't add it to the national reserve assets not because it's decentralized or they can't control it. The simple reason is that it is not reliable as a store of value, especially when it comes to a country's reserves.

Bitcoin's volatility only benefits speculators, who are willing to take risks to get rich quick. Meanwhile, what the government needs is a stable and safe asset to guarantee when needed in emergencies. That is why governments increase their gold reserves whenever the world economy becomes unstable. They don't need a volatile and risky asset like bitcoin, we need to accept the truth.

We do not have full and accurate information about what is happening in El Salvador. Their economy has indeed improved but is it due to the impact of bitcoin adoption or is it due to the wise economic policies of the country's leaders? Or even if bitcoin does play some role in improving their economy, that is not enough to assert that bitcoin can play a significant role in improving the economy of a country or the world.  Because besides El Salvador, the Central African Republic is another country that has accepted bitcoin as legal tender but as a result they have failed miserably.

So we can't just look at El Salvador and jump to the conclusion that bitcoin can play a role or has the potential to improve a country's economy .

It can surely play a role but I think it could have a noticeable impact mainly if very small countries decide to use it/promote it. We all know about the El Salvador case, the experiment is going pretty well but at the end of the day we're talking about a small third world country. Let's say Brazil try to do the same, do you think it could have the same impact? For the moment, I would say no, it won't. I wish Argentina would do something about, that would be interesting.

How will Bitcoin impact the economy? We need to show concrete impacts if we want to convince the government, they don't need vague and unclear ideas.
I wonder, how can bitcoin attract foreign investment? How to create more jobs from accepting bitcoin when it is just a decentralized currency, a means of payment?
Honestly, I can't imagine what role bitcoin will play in the economy or how it will help a country's economy grow. According to the white paper, all I know is that Satoshi created it to be a peer-to-peer currency that helps us protect our privacy. It was not created to save the world economy, don't exaggerate its power too much.

I agree that Bitcoin can contribute to economic growth in the fields of investment and reaching out another division of the financial sector. El Salvador boasts of being the first country in the world to use Bitcoin as its legal tender since 2021. It is too early to say anything for sure but the country has seen a high number of tourists and an increase in the inflow of money from abroad due to its attraction of Bitcoin users. According to the World Bank, the amount of money sent home by Salvadorans who work abroad may be as high as 24% of El Salvador's GDP. Bitcoin could make money transfer cheaper by reducing the fees, hence sending more money to the people.

But there is a flip side too. Critics of Salvadoran Bitcoin trial often say it has boom-and-bust cycles that can hurt those who cannot afford any loss at all. Furthermore, not all nations possess sufficient technological capacity or expertise to enable smooth entry of Bitcoin. On the other hand, if done cleverly Bitcoin may help diversify economies and give banking services to people excluded by traditional banks.

I think this challenges can still be bypass with good understanding, even with all these challenges Bitcoin still have good advantage that will be beneficial to people. If the government are ready to accept Bitcoin from their heart it will definitely make a good impact for the people and some people can also use it directly in exchange to gain other things. I think bitcoin has the capacity of making an impact to the economy somehow if the government really knows what they are doing and what they want.

I think people have little understanding of bitcoin better compare to some years back. It is known to most people that bitcoin is volatile now because cryptocurrency is known to people very well which the volatility of the market into be strange.

I don't know how much the stock market is worth today, but I remember from before that the total value was about $90 trillion, so we can say that it is worth about a hundred times more than all the Bitcoins in circulation. When you look at the statistics, it is much clearer where BTC is at the moment, but this is a reality that many do not want to accept and live in some kind of illusion that BTC will improve the world's economy.


Many countries have very large gold reserves, and yet they have big problems - just look at the example of Italy, which is among the top countries with gold reserves, but it cannot improve its economic situation with them because the ECB does not allow them to do so. I don't know which serious country would dare to invest in BTC in the long term, given that it is still a risk, not only because of volatility, but also the possibility of hacking, forks and who knows what else.

El Salvador is still trying to implement bitcoin in the country with various plans but so far has not achieved any significant results. Only government investment in bitcoin generates profits but they are insignificant and cannot help the economy. As far as I know their bitcoin investment is generating over $40 million in profit and how will this help a country's economy?

El Salvador's strength is tourism and its fatal weakness is gang violence. Their economy has improved somewhat in recent years as their president has somewhat quelled gang violence and boosted tourism. All of this has nothing to do with bitcoin.

People keep talking about bitcoin in El Salvador but they never take the time to learn about the economic situation there, they always assume that everything there is thanks to bitcoin but they have no proof. Also, the Central South African Republic adopted bitcoin and failed but I don't see anyone mentioning that. Bitcoin cannot improve or contribute anything to the economy, we should accept that fact.

I think the major country that Bitcoin help the economy most as the developing countries, because most of countries that have adopted Bitcoin at individual level are mostly developing countries, take El Salvador for example and also Central Africa republic who have adopted Bitcoin, it all started from the citizens before the government gave Bitcoin the legal tender in those countries.


So Bitcoin economic impact is more on the individual level than government, since most countries are even anti Bitcoin even some goes as far as banning Bitcoin even though the citizens in such countries still use Bitcoin to advance their economic life's.

I cannot confirm for sure if a country as expected by its economy if it applies Bitcoin like El Salvador. For me this is about their readiness in dealing with all forms of consequences.
If you make El Salvador as an example, then from the investment sector it can help. The Bitcoin system is greater than the traditional financial system, I agree and we can feel it. Back again to the readiness.

We as personal making bitcoin as a long -term investment asset by making routine purchases with confidence will get a large price return when Bitcoin reaches the highest price with a large percentage of the purchase price, of course according to my mind, a country that has power over money sourced from money sourced from money sourced From income it would be better if they changed the fiat into Bitcoin and used as a long -term investment asset.

Not at the moment if you ask me. BTC could help improve a country's economy drastically if its price fluctuations would minimise to a permissible level and if LN acquired mainstream support.

It's very difficult for either of these to happen thanks to which no big government in their right mind would try and utilise BTC for improving their economy.

In some cases it could bolster a country's economy, I've seen that shit happen in El Salvador, and a couple other countries who accepted bitcoin as a supplementary currency, but here's the thing, why the fuck would you do that?It's not wise, cause it's volatile, decentralized meaning it's not just your citizens who will be playing with the money of your entire country, and furthermore, it's a pretty irresponsible thing to do to say the least. You don't have any other countermeasures as well as plans to support and lift your economy up, so much so that you'd end up crawling and begging to be helped by bitcoin and crypto? That's just stupid. That's no different from individual crypto enthusiasts and maximalists thinking that bitcoin's going to be the solution to their poverty.

Any country who own big amount of Bitcoin could also disturb the market which already volatile, for example when Germany sold their confiscated Bitcoin  from Movie2k, a film piracy website, with total amount $3B worth of BTC, it affected the price of Bitcoin to go down.

Bitcoin market is smaller than stock market and it does now have magical power to fix macro things like global economy or national economy. It is only helpful for people as individuals to find a magic way to get rich or enrich their wealth through investment in Bitcoin for long term.

If a country can add Bitcoin to its national treasury and have good risk management for their treasury, that requires to have some other assets, not only have Bitcoin, they can hold their bitcoins for a long time and see good growth in value. But even so, it does not help to fix a national economic crisis that only can be resolved by government and combined efforts on many aspects in their country.

Basically governments want to control things as much as possible and they don't suicide by accepting something they can not control but give power to their citizens.

Are you familiar with the current state of the economy in El Salvador? As far as I know, the number of Chivo wallet users is in constant decline, Bitcoin city is at a complete standstill, and Bukele is negotiating with the IMF for a loan to get out of the financial mess that the country is in and no one remembers since.

Bitcoin is not magic that saves failing economies, so how could it be when it is so volatile that in one day it can lose 50% of its value compared to fiat currencies. El Salvador is a country that renounced its own currency, and Bitcoin is just one more experiment that the current president liked, which does not mean that someone who will succeed him one day will have the same opinion.

My opinion is that Bitcoin is not intended to replace fiat currencies, but to be an alternative to them - and no serious country would ever accept something that it cannot control.

A country's economic growth will be dictated by taxes and remittances.  But if Bitcoin is illegal in a country then there will be no tax on Bitcoin transactions. Economic development is not possible in a country if there is no tax so for now I think bitcoin will not achieve economic development for that country if bitcoin is not legalized for any reason.

Of course not. Taxation with Bitcoin is a complex proposition that should be done in coordination with centralized finance. However, a part of the conversion from Bitcoin to fiat is done by local intermediary groups and they pay taxes to the government of that country. There should be no separate taxation and provision of income tax already levied on them by the government and at the individual level. In that case incentives should be taken at the individual level because of adding more additional taxes to the country's economy.

This can also make a huge difference in economic growth since it combined traditional financial systems with blockchain technology. A developing financial system and robust macro economy, Bitcoin can attract technology-based investors to establish new businesses reflected by El Salvador through its inclusion of Bitcoin in its economy. Furthermore, expanded financial incorporation can be accommodated with Bitcoin, which allows access to savings and services that traditional banking systems are incapable of effectively offering. By reducing remittance costs and timeliness, it avails a valuable alternative to conventional transactions that benefit countries dependent on remittances. For these benefits to be realized, states should produce unambiguous regulatory structures that foster innovation while also ensuring consumer protection and economic stability. Restoration of acceptance of Bitcoin can be fueled through investment in its digital infrastructure and public education. Research into new uses of blockchains for different industries would improve their transparency and efficiency, while global cooperation can bring in very valuable insights and best practices. With these things at hand, countries would be able to use the potential of Bitcoin to boost their economies and integrate it with corresponding meaningful monetary policy actions.

So for me Bitcoin can make a significant contribution to a country’s economic development if it is integrated into traditional monetary systems or through blockchain technology. By developing economic policies and diversifying their economies, countries can become attractive to new technologies that create jobs. Similarly, bitcoin can promote financial inclusion by bringing banking and communications to a population that is underserved by traditional banks. We all know that the feature of Bitcoin can help in transferring funds abroad, reducing the transaction costs and processing time involved, therefore supporting economies based on such transfers. So for sure Countries should then support this by establishing a clear regulatory framework that encourages innovation while preventing security and regulatory concerns and investing in digital infrastructure support to adopt Bitcoin. And thats only my take on this topic but a lot can be done if all countries adopt to this innovations

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.

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.

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.

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.

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.

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.

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.

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.

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...?

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.

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.

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?

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.

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.
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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

It is quite difficult to start a new habit. I think El Salvador needs a fair amount of time for full adoption. With the current conditions, I think that step is very good. Although it is true from the data I got it is not satisfactory.  Most of the survey results do write as you say.
It seems that this integration is still quite time-consuming. Tourism and mining projects do not seem to be able to provide good development. But I think El Salvador benefits from the results of the routine that Bukele does buying Bitcoin every day.

Source: https://en.wikipedia.org/wiki/Bitcoin_in_El_Salvador

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.

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.

It is okay for Bitcoin to greatly aid in the economic development of a country but there must be acceptance of Bitcoin in the political or economic context of that country. Bitcoin is like remittance if the people of the country can use it properly but most of the countries work against the acceptability of Bitcoin.

Bitcoin can change peoples live for good and the same can be seen with improving the economic situation of a country which adopt bitcoin, a good example is in El-Salvador, if we look into the way they were before the bitcoin adoption as a legal tender and how they have been transformed to what they were now, we could realize much of developments in which bitcoin has caused their economy to achieved, other countries may also plan along same pursuit with the use of bitcoin in boosting and transforming their economy.

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.

Positively, the creation of Bitcoin has had a good impact on the global economic system even though some have viewed Bitcoin negatively from the past until now.
From a currency perspective, Bitcoin provides convenience for openness because anyone who uses it does not need something complicated. Basically because the one who controls Bitcoin is not another person or a third party but the individual who owns Bitcoin.

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.
If El Salvador dares to issue legal regulations to legalize Bitcoin as a legal tender, then when this American state becomes the center of attention of investors, it is not surprising. From the economic sector, for me El Salvador has made many changes even though I cannot show positive changes in a real example.

What for? BTC is a legal tender in El Salvador, but most of the population there do not use BTC, so many of them downloaded the Chivo wallet back then, but it was just to get the $30 bonus.
I am having a hard time understanding you here, what do you mean by 'BTC transactions in the country', BTC tx's are recorded on the blockchain and isn't grouped by nationality.

Before going any further, my recommendation for countries that want to adopt Bitcoin more widely is to visit El Salvador and build relationships with the government there to gain a lot of knowledge on the ground, in addition to the theory obtained, it would be much more important to go and witness for yourself the situation from the field process of how El Salvador finally adopted bitcoin. So this relationship is considered an official comparative study to study, research, and if possible invite El Salvador digital finance experts to explain everything related to bitcoin transactions in the country.

I hope you understand that government doesn't like what they don't control, if only Bitcoin is a government creation probably like US for instance, many countries will follow and do the same thing but it's a product of a believer call Satoshi who see potential in his creation and today, individuals has embrace it and so does cooperate institutions and many other countries. If at all perhaps countries were able to have a first hand in Bitcoin, they would have done this idea.

Another thing is that you should know is that countries only give priority to their own currency and any other currency they used as their own reserve, any other thing is a secondary. Government don't like something that doesn't allow them have it their ways and that's what Bitcoin does, it gives freedom and allow everyone enjoy the benefit that comes with it as long as you have the money to buy it.

How does Bitcoin help develop a country? Productivity and legal system play a major role in the economic development of a country. Is Bitcoin associated with these? When your country is developed in terms of production and the legal system to protect the productive resources is strict then that country is considered economically developed. You can trade with Bitcoin, but that will bring prosperity to you, not the country. Remember that personal development and national development are not the same.

Bitcoin can indeed play a very major role in the economic growth of a country. But the government needs to have a favourable legal framework to support it. Without the legal framework, no good will be done to the economy as a whole.

You can just think from the international remittance perspective. Many countries in Asia, receives multi billions in foreign remittance each year. In order to receive the remittance, the central bank of that country needs to maintain a network and pay a hefty fees to the middleman companies. Bitcoin can eliminate the need to have a middleman.

This is just one aspect. There are hundreds others were Bitcoin can help in the economy of a country, if handled in a right way!

OP's arguments make some sense to me. I have seen lots of posts that present Bitcoin as the solution to the economic problems of a country. From your post, we can conclude that Bitcoin can contribute to the growth of the economy because it could diversify the economy which could help the government increase its revenue through taxes.

Crypto firms in the country can also contribute to the country by creating employment opportunities. Research by K33 Research showed that even in the crypto-hostile China the crypto industry employed about 190,000 employees as of July 2023.

 

If good crypto policies are well implemented, some percentage of the unbanked population can have access to financial services. Bitcoin transaction fees can help reduce the high cost of sending money internationally but this will be when the mempool is not under attack.

I believe it depends on the mindset or the thought process of the government and officials in charge of a country. In most countries, governments and authorities don't want financial inclusion for the common people because that would make them weaker over time. They wouldn't want the common people to have financial inclusion and be able to manage their finances on their own because if that happens, their people wouldn't depend on them anymore and that makes them lose control of the people.

Remember, the best way to control people is to always keep them dependent on you for at least something because as soon as they become completely independent of each thing, you won't be ruling them anymore and they won't need you.

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

If one day all of countries or most countries in the world have adapted and integrated cryptocurrency, in this case is Bitcoin, into their governments' fund system, the way we trade Bitcoin will be different. Us, independent traders, will rely more on big country's move/news towards Bitcoin in buying or selling our asset because it will highly affect the global market. The way I look into it is it will be more similar to how we trade Forex.

This is just my speculation, but sure for now Bitcoin would play a big role in a country's fund system since not many countries has adapted nor regulate bitcoin, and I believe that the first big country who has succeeded in fully adapting and regulating Bitcoin will be a pioneer which will affecting other countries who are trying to follow its path and might set the rules for Bitcoin regulation globally in the future

It plays some role but is not actually the thing that helps the country's economy grow because the government is not benefiting much from it. This is why we don't feel their support in adapting this technology, as they know that they couldn't get what they expected to happen. The government has no big interest in this because they see that they can't make money from it, unlike fiat. 

I think we should know that bitcoin is not made to help the country's economic condition, as it is not the solution to such a thing.
We can benefit from this, of course, but not to the extent that it makes everything possible. 
 

Let's just say we have seen collapsing economies around the world for countries  such as Venezuela, Zimbabwe etc ditch their currencies for crypto (bitcoin) because they experienced hyperinflation and in the process experienced more stability in their economies too which could suggest that growth 💹 can actually happen at the expense of their own currency...

And ultimately, for an economy to grow its not only about using bitcoin..other factors such as a conducive political landscape needs to exist, technological infrastructure needs to be there, the government needs to have laws to protect investors and a whole lot of other supporting factors need to happen to see economic growth!

I agree with the op about the potential use cases of Bitcoin. Attracting foreign investment, creating jobs, allowing more financial opportunities for the unbanked or insufficiently banked, and saving up on international transaction fees are all good points.
But when we talk about Bitcoin, it's also important to consider the risks and challenges. One of them is that Bitcoin largely is not accepted directly as payment, so people often need to sell it for local fiat to make use of it. Also, storing it on centralized platforms poses a big risk of losing your funds, whereas storing coins yourself means that if you lose your password, passphrase or whatever, nobody will be able to help. You'll lock yourself out of your wallet. Then there's price volatility, as well as occasional fee spikes.
Both upsides and downsides need to be considered to make informed decisions.

This is because the government can track the transactions if the user uses his debit/credit card, and that way they can charge taxes, but that can be done too with Bitcoin if the government owns the wallet just like it happens in El Salvador, we know Chivo wallet is a gov project to trace the coins from the civilians and that way charge taxes on their transactions. So, it's the same if you have to use your personal data or do KYC to spend BTC or Money.

El Salvador's economy can grow because Nayib Bukele is an iron fist president, he really care to combat against criminals, that's why he caught many people that have sign like a criminal, he might caught the innocent one.

I don't think this is correct.

Sure Bitcoin is cheaper it terms of foreign transactions compared to banks, but it's a case for the citizen, not the country. The country actually get benefit if the citizen use banks instead of Bitcoin.

What role can Bitcoin play in promoting economic development? First, we need to find out what factors help the economy develop. The government must have reasonable economic policies to support people, create more jobs to help people increase their income, stabilize market prices, and fight corruption...in short, it must somehow ensure people's lives have quality. And to do all that requires combining thousands of factors together. Can Bitcoin do those things? Can it create jobs, can it attract investment into the country...? Looking at countries with leading developing economies, does bitcoin play a role in their economies? We should be realistic.

El Salvador's strengths are tourism and labor export. In addition, El Salvador's trouble is violence, they are the country with the most gangs in the world. But thanks to Nayib Bukele's strong repression policy, the country gradually stabilized and from there their economy gradually stabilized. Making bitcoin legal tender brought worldwide attention to them, but that is not what made their economy grow, all thanks to Nayib Bukele's economic policies.

El-Salvador did break the internet by having to legalize Bitcoin for a legal tender and since then, they haven’t been off the news as, it’s been met with mixed reactions based on market conditions. Even then, it is possible that Bitcoin and cryptocurrency assets could help the economic growth of a nation. This would be in terms of wealth redistribution.

Where, you can sell your Bitcoin far and near, get some of those funds from where ever to invest in something locally.
Also, by purchasing products from places foreign to you using Bitcoin, your very much involved in import and export of products which is a plus to the economy.

This comes in play in terms of, the opportunity Bitcoin offers where just anyone could buy in and buy in with as low as they’ve got, using the knowledge they’ve acquired to grow their portfolio.
With citizens being able to make a living through trade, the economy grows.

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.