Topic: Crypto can help poor nations a lot - page 4. (Read 984 times)

Poor nations can't afford crypto!
And if poor nations would magically get the money to buy Bitcoin they would till need the rich nations to buy their Bitcoins when they want to sell, otherwise, you wouldn't have made anything!
Now, seeing that the majority of Bitcoins would be held by other nations, why would the rest buy into those assets and enrich those when they could simply choose a different one and with their greater financial power make that successful?


And their GDP growth for two consecutive years is the lowest in all of Central America, which means that countries without this incentive have done better!  

This phrase is as utopian as it can never become reality.

There will always be poor and there will be rich, and dreaming that one day the world could be changed by cryptocurrency or some new invention is useless. However, one can understand those people who are in a poor situation, and for them, several stories of enrichment of their neighbors will always be encouraging and motivating. But first, people need education, as well as a good income that will allow them to have some amounts for investment that will not affect their lives and their most necessary expenses.

Ok I agree with you but what I think from my point of view is that bitcoin is a coin to think about after gold. Gold is not a property it is a resource. Property is destroyed but wealth is not destroyed. Bitcoin is one such coin that can expect good things in its future.
When it becomes valid, its very good side will be noticed. If formalized, it will have an impact on the country's economy. When it gets legalized, the government will bat on it and from here the government will have earnings. Apart from that, when it can be used in business transactions, it will benefit from it.
When it can be fully utilized then positive aspects can be observed from all aspects. It is much needed to keep pace with the developed world. Hopefully it will be legalized in line with the developed world and everyone will benefit from it.
But it will not take much time to happen so soon. Managing Bitcoin is not so easy, one has to come forward from many aspects to manage it. But because it is possible for me, it will be possible in the future

In my opinion there is no guarantee for poor countries to be able to become developed countries because they are involved in crypto and I think it would be more accurate for you to mention bitcoin because in this discussion thread bitcoin maybe you mean bitcoin or not? because in general, in my opinion, crypto is all-encompassing because of course there are various types of crypto.

In my opinion, of course a country has the potential to make progress in terms of the economy if its people invest or are involved in the crypto world, but of course the most important thing is that it must be supported by the government because with the support of the government there will be a smooth flow for people to get involved in the crypto world. but of course in this case it depends on the interest of the community and the extent of the community's insight into bitcoin because of course without the insight that the community has then it is very difficult for the community to make a profit even though they are involved in the crypto world because of course the important thing is profit because if for example they lack knowledge and are involved In the crypto world, it will be very difficult to make a profit and sometimes there are even losses.

But of course, if the government holds a program so that people learn about crypto and blockchain, there will be potential for the economy to progress and the country will have the potential to continue to experience economic improvements.

However, for poor countries that adopt Bitcoin, of course there is at least the potential for the country to experience economic progress.

You are confusing cost of living with standard of living. For example in a place like NYC the cost of living is extremely high and the standard of living being very low (with all the rats roaming around and the infrastructure that is falling apart for being too decrepit).

You said a lot of things but you forgot to say HOW!

If you think that if people of any country (poor or otherwise) invest in cryptocurrencies and their standard of living would magically go up, then you are mistaken. In fact it can have the opposite effect, their standard of living could drastically decrease as they lose a lot of money in a highly volatile and risky market called the altcoin market.

The only way any country can truly benefit from this new thing called the blockchain technology is if they start real businesses built because of  or on top of this technology. For example if they can produce the energy and run mining farms. If they can start exchanges and offer services and earn a revenue.
In that context this can help the countries with "low cost of living" a lot because of the exchange rate difference.

Otherwise "investing" in some shitcoin and hoping the price goes up so you get rich and increase the standard of your living is not something that can be said "is helping the nation".

To be honest, I still haven't figured out how bitcoin will help the country's economy develop even if the government supports it and urges people to use it. Basically to own bitcoin, people need to have money, which means the government needs to create jobs, more jobs and motivate people to work together to create money. From there, everyone's lives will improve and will boost the domestic economy. Meanwhile bitcoin is just a currency or even just an investment asset like gold. Bitcoin doesn't create jobs, can't help attract foreign investment and build domestic businesses...so I don't think if the government supports bitcoin they can improve their economy.

In poor countries like mine and El Salvador, many people go abroad in search of greener pastures. They will send back home money every month or every couple of weeks. In the case of El Salvador, more than 20% of its GDP is contributed by these migrant workers.^[1]

Bitcoin plays a vital role here. Before, a family member working from abroad sends via a bank or money transfer services. For somebody back home to get the money, he/she has to travel. In some situations, it takes hours and after 2 or 3 rides. They spend much for it and for the ridiculous fees charged by these third parties. There's also a lot of risks involved in this setup.

With Bitcoin, they will get the money from the comforts of their homes. They don't have to pay for the fares going to and from the banks. They don't have to pay exorbitant charges. They can spend it right away.    

It may not be helping the country itself, but it is already a lot of help to its citizens.

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[1] https://www.weforum.org/agenda/2023/02/remittances-money-world-bank/

Bitcoin and other cryptocurrencies are often talked about as potential tools to help poor countries in various ways, but they also come with challenges and risks that need to be considered. Bitcoin can provide access to financial services for people without bank accounts. With just a phone and an internet connection, folks can make transactions, send money, and store value. In countries with high inflation and economic instability, Bitcoin can serve as an alternative for storing value since it's not controlled by the government. However, the value of Bitcoin is very volatile. This can be a risk for individuals who rely on Bitcoin as a store of value, especially in poor countries that are vulnerable to economic crises. There's a need for education on how to use cryptocurrency safely and effectively, which may not be available in many communities.

Maybe some countries can learn from El Salvador, but they can't imitate the same. Every country has its advantages and disadvantages. Bitcoin is very open to adoption and even increases the value of state revenue. But keep in mind that this adoption will not be easy either. They need economists and crypto experts.

If you just look at El Salvador's success and draw easy conclusions, I think it's difficult. If they manage the economy alone, they can't, let alone manage the volatile Bitcoin. So I think they have to improve the government and economic system to cultivate expert human beings. So that they are able to improve themselves.

Even living cost in New York is expensive, I believe it's far better to live in there since blue collar jobs are available everywhere and you get paid decently rather than being poor in poor country where working in blue collar jobs didn't even enough to pay your monthly needs.

Crypto can help rich people who live in poor nations, instead of helping the majority of people who live in poor nations.

Wake up, look into the reality, don't become the next escape the matrix guy.

Firstly, if you treat Bitcoin like a speculative asset, then prepared to be burned. It isn't something for people that are living below poverty line or governments with low GDP to grow in.

In terms of business investments, even cross border ones; It probably wouldn't be that straightforward because funding is one thing and having sustainable FDI is another. Most of the countries living under the poverty line has fairly poor governance, economic stability or business prospects. These are the key factors that investors have to consider and hence that's why companies or investors are generally more interested in areas where they are able to have a stable foothold to grow their businesses or invest in.

I find that it would benefit more with Bitcoin or even better, other stable coins being a more sustainable form of transaction currency to facilitate more fluid and ease of local and cross border capital transfers.

Yes, cryptocurrencies can greatly help poor countries, but they will not eliminate poverty completely, anyway.

Yes, working in cryptocurrencies can help the poor obtain additional resources through which they can improve their lives, given that the national currencies of poor countries have a very low value and are almost worthless due to inflation and other economic problems, so earning a little through cryptocurrencies may make a difference for some In poor countries.

Therefore, in my opinion, cryptocurrencies can help more personally at the individual level and not at the country level as a whole.

It is not true with impacts of Bitcoin and it is more untrue with impacts of cryptocurrency (altcoins). From individual to national impacts, neither Bitcoin nor altcoins can extremely help poor nations.

If a country is poor, fall behind the world, there are many core problems there and governments are responsible to fix these issues. It's not responsibility of Bitcoin or cryptocurrency (altcoins) to fix these problems.

In investment view, investors can get profit and get loss and no evidence to say all or most investors in one country will get profit from their investments. But as said, problems are more systematic and related to governments so citizens can not fix these problems with their investments in Bitcoin or altcoins.

Altcoins can be attractive but they are very risky.
Don't buy altcoins because they are top altcoins

Hmmmm.. you are right that Bitcoin can not fix country economic problems on its own. People need to take action and use Bitcoin to improve their financial situation. Government also needs to support Bitcoin to help country economy grow. But if someone wants to make money by exchanging USD for other currencies that is different approach. Overall Bitcoin can help country economy if people use it and government allows it to grow but it ca not do it alone.

The most important part about crypto that cannot be underestimated is that it holds value no matter what, just like gold and silver.

The difference here is that gold and silver have very low margin profits; people who live on daily trading of those must have 100K nonetheless.

Stocks, on the other hand, may give more profit, but they're far more dangerous. If you buy a company's stock and the company goes bankrupt, your stock won't be worth the ink.

So, crypto is a very good investment in general. No matter how low it goes, it won't reach absolute zero; it will always have value, and both the margin profits and losses are changing much faster than gold and silver.

This is why so many poor countries and even developed ones are starting to adopt crypto in their sovereign funds.


Poor countries are poor for a reason; it's not just their government and the colonization history; it's the people themselves. Those people only understand the old school of creating money. In fact, they don't even understand the old school at all. Once Bitcoin reached the 20K line, anyone who understands jack about economy should've jumped in. Bitcoin is nothing but ones and zeros. What gives these ones and zeros value is the supply and demand in the most free decentralized market. Anyone who could've jumped in back then and did not take the chance doesn't know anything about economy.

Quite frankly I agree with your assessment of this, but unfortunately, Governments in some developing nations are treating the crypto space like it is a cancer to the growth of society so acceptance is not even an option in their Dictionary, But you can't blame them because most of their Digital regulatory bodies are more or less dominated by old men with outdated knowledge when it comes to technological advancement.

People need to realize that bitcoin will not fix a whole country by itself. The citizens need to have that initiative to buy and hold/trade bitcoin for the betterment of their lives. The government needs to be pro-bitcoin so it can actually help a country get better economically speaking.

But if you want to take advantage of the difference between usd and say any fiat money from any country, then that would be a totally different story.

how does someone in a poor country afford to pay $5 for a transaction fee though? if bitcoin is going to be useful to poor countries then fees need to be almost nonexistent.

There are some ways Bitcoin can help poorer countries, but not all may work in all cases.

The "El Salvador way" is mainly to try to attract investments from foreign Bitcoin-related companies. I believe this approach will only work for small countries, where even a few investments by large crypto firms could impact the country's GDP. And we still don't know if it worked in the case of El Salvador. I've still not really seen big exchanges or other crypto firms establishing themselves in the country. But at least their reserves are growing

For other countries, of course the "crypto economy" can bring opportunities for local startups and entrepreneurs, like @Pokapoka124 wrote. Another example are ICOs. While most will think about scams when they hear that word, if accompanied by adequate investor protection measures, it can be a cheap and efficient tool for fundraising for local companies, with potential global sourcing for the funds. I like for example the approach they took in the European Union: if you present a whitepaper in a certain format informing your potential customers -- a simplified "prospectus" -- then you can fundraise money via ICOs. This makes scams and rugpulls much more difficult.

In general a crypto-friendly regulation in poorer countries can benefit the local economy more than in rich "industrialized" countries because it allows local entrepreneurs to take part of a globalized technology sector. Trying to find financing from global capitals for a African, Asian (outside the "tech hubs" like South Korea or Singapore) or Latin American company is often quite difficult, the crypto sector can simplify that task. It's a pity for example that the Central African Republic scaled down their Bitcoin and crypto initiatives (even if the first approach may have been fueled by corruption).

It doesn't seem like that; a poor country has to work hard to get out of the poverty trap. Its people need to unite, build proper infrastructure, and create new job opportunities. Adequate education is also crucial so that future generations have the skills needed in the job market. In addition, innovation and technology should be used to boost productivity. Every individual has an important role in economic improvement, and if all elements of society move in the same direction, the hope for achieving prosperity is not impossible. It's not just about relying on bitcoin.