effect of bitcoin on institutions and global economy

S A KHAIR

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Quote from: cafter on March 31, 2023, 10:38:04 AM

how would the wideespread adoption of Bitcoin as a primary means of payment and store of value affect the global economy, including the stability of traditional financial institutions,
the role of governments in monetary policies, and distribution of wealth and power among different groups in society?

Even if bitcoin is accepted globally, it is still not the world's main currency and cannot replace fiat, so it won't have too big of an impact on the world economy. If it becomes an existing alternative to fiat, it will only bring convenience to us, it cannot change or make the world better. But if it were seen as a scarce asset like gold, that would be different and have a much more positive impact on the world.

Marvell1

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Quote from: Frankolala on April 01, 2023, 08:56:08 AM

Bitcoin was designed to be an alternative payment method in which people can use to buy and pay for their goods. It will be impossible for bitcoin to be adopted globally and used in replace of fiat due to the volatile nature of bitcoin.

The economy state will be alarming and weak because the economy will not be stable at all. It takes a long term investment for bitcoiners to benefit from their investment due to the fact of bitcoin life cycle. Government will only use the currency which they can regulate and control so that they can be in charge of citizens financial life and to control the citizens. If they allow bitcoin to replace fiat globally it will be impossible for them to be in charge of the economy.

Once bitcoin gets bigger, the volatility of bitcoin will also get smaller, bitcoin may still be as stable as the gold one day. Or when there is more regulation, I still think the volatility of bitcoin will be gone, and that's why I don't like regulation. But I don't think that's the reason it was not chosen to replace fiat, the main reason is that it is decentralized and not created or controlled by the government. As long as they rule the world and rule us, they will still choose fiat as currency to control us.

Decentralization will bring more fairness to the world, but excessive decentralization will also make the world more chaotic because it is not regulated and managed correctly.

Spaceman1000$

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The global adoption of Bitcoin will generally affect the global market in a positive way, but however how can this narrative be driven, because Bitcoin is a decentralised currency, that is not controlled by official authorities, so I believe government will be skeptical adopting Bitcoin generally since they are always bent on controlling the financial aspects of our livelihoods.

But then I if the IMF and other government across the globe, agrees for the adoption , I believe there will be some level of agreement that will be reached that will be for the good of the citizenry.

Gallar

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Quote from: cafter on March 31, 2023, 10:38:04 AM

how would the wideespread adoption of Bitcoin as a primary means of payment and store of value affect the global economy, including the stability of traditional financial institutions,
the role of governments in monetary policies, and distribution of wealth and power among different groups in society?

Of course there will be some changes, because for some people bitcoin is still foreign to their ears. So there will definitely be debates for and against, because it's common for debates to arise when there's something new.
the government will not be too bothered about having to print money again, because bitcoin is digital money, and also decentralization, so the government only runs and makes rules about taxes and the like.

Quote from: AnonBitCoiner on March 31, 2023, 01:11:16 PM

The salaries are not so high to fulfil daily uses therefore Bitcoin's investment is the only way to make huge money for having a satisfied life. For government job education is necessary and a piece of degree can decide your ability to do job but in trading you do not have to show such things therefore all those who are jobless wants to become a part of cryptocurrency.

indeed working in government mostly must have a degree and knowledge in the field that will be occupied. Things like that are natural and commonplace in any place in any country, because usually the government also looks at the person and sees his abilities first before appointing him as an employee in the government.
but what I know is that if the ability is qualified and indeed a genius, the title is secondary, because it cannot be denied, there are many people who are geniuses but do not have degrees. and the government there saw the potential.
an example of a job that I know is in the field of government of the country where I live that emphasizes ability is a computer network defense system.

but that doesn't mean investing in bitcoin or crypto is an easy thing. indeed investing in bitcoin or crypto there is no requirement that you have to use a diploma or degree, but still investing in bitcoin or crypto must also have good skills, because if you carelessly invest you can experience losses.

Bananington

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Quote from: cafter on March 31, 2023, 10:38:04 AM

how would the wideespread adoption of Bitcoin as a primary means of payment and store of value affect the global economy, including the stability of traditional financial institutions,
the role of governments in monetary policies, and distribution of wealth and power among different groups in society?

Traditional financial institutions are threatened because their business is at stake. Imagine how the print media for newspapers must have felt when the internet created opportunity for blogs to take over, Imagine how the post office must have felt too when the telephones were invented and commercialized for use. That is the exact same way that these financial institutions feel because they know that bitcoin and the technology behind it has the potential to have a negative effect on them by kicking them out of business. Formerly, the traditional financial institutions competed with themselves, now all of them together are in a battle against bitcoins that threatens them all.

Frankolala

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Bitcoin was designed to be an alternative payment method in which people can use to buy and pay for their goods. It will be impossible for bitcoin to be adopted globally and used in replace of fiat due to the volatile nature of bitcoin.

The economy state will be alarming and weak because the economy will not be stable at all. It takes a long term investment for bitcoiners to benefit from their investment due to the fact of bitcoin life cycle. Government will only use the currency which they can regulate and control so that they can be in charge of citizens financial life and to control the citizens. If they allow bitcoin to replace fiat globally it will be impossible for them to be in charge of the economy.

kryptqnick

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I don't think that Bitcoin can become a primary means of payment (unless we account for off-chain solutions, that is) due to the limitations of Blockchain, namely the scalability issue. So if this happens, I think that centralized services, including governmental custodial wallets like the one in El Salvador, will be a part of it. In that case, I think banks will continue existing as well, as some will prefer the older institutions to the newer ones, and fiat currencies will probably remain as well and simply be used alongside Bitcoin (sort of like in the EU in countries that have their own local fiat you can often pay both in local fiat and in EUR). Traditional institutions will become less powerful but may maintain relative stability and perhaps even prosper, creating new relationships with crypto projects. As for wealth, those who are already wealthy always have a better chance of becoming even wealthier than those that aren't, and since investing in Bitcoin requires having money you can dedicate to investments, that won't change much. But of course, some new people will benefit and some will rise higher than they would have under normal circumstances.

uneng

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This is simply not possible for real, because the economies of the countries would become too volatile due to working around bitcoin. Therefore, susceptible to foreigner manipulation by rival nations which could manipulate financial attacks (pumps and dumps) much more efficiently than they try doing right now.

That is part of the consequence of using a currency of decentralized nature and it can't be reverted. Governments using bitcoin globally as official currency would turn our traditional economies a big mess, probably leading to more conflicts and chaos than we have right now in the world.

robattfield

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Obviously if this happens it will affect the stability of traditional financial institutions. These organizations will need to adapt to new technology and will face competition from legacy developers. I think the widespread adoption of Bitcoin as a primary means of payment and store of value will have a major impact on the global economy and traditional financial institutions. First, Bitcoin is seen as an advanced and potential technology that has the potential to change the way payments and value are stored. If widely adopted, Bitcoin can help reduce transaction costs and times, and improve transaction safety and accuracy.

ilovealtcoins

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You are asking about the future, and this question is going to be difficult to answer. We still don't know what the future of bitcoin will look like, so predicting its effect on the world economy is impossible. If bitcoin is banned outright, it will have no effect. So more data is needed to make predictions about this.

tabas

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As a store of value and related to global economy as it contributes a lot. You saw those banking institutions that have seen on the news telling their problems and potential collapse? That's one of the reasons why bitcoin is here, there will be no third party that will touch and hold your asset and it's only you that shall hold it unless you're allowing people to hold your private keys but that's a very unlikely situation.
Money from those institutions is likely to go into the bitcoin economy, thus the demand will increase and so the price too. This is why it's being feared by those economies that are in the verge of having a problem or a crisis. It is because that money from them might really go and flow into bitcoin. Because looking at most assets today, this is one of the most liquid and best assets that one can depend on.

YUriy1991

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When looked at as a whole, the impact of Bitcoin on the global economy is still uncertain and will depend on various factors including the level of adoption, regulation, and technological development.

The widespread adoption of Bitcoin as the primary tender and store of value could have a significant impact on the global economy. My view is that it also has the potential to undermine traditional financial institutions and undermine the government's role in monetary policy, shifting the distribution of wealth and power among different groups in society.

However, the exact impact will depend on various factors such as the speed and reach of adoption, government regulations, and the development of supporting infrastructure. I think it is important for policy makers, businesses and individuals to consider these potential impacts carefully as they navigate the rapidly evolving digital currency landscape.

adzino

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If Bitcoin becomes the go-to way to pay for stuff and store value, it would shake things up big time. Banks and traditional financial institutions would have to step up their game or risk becoming irrelevant. You can be almost sure that they are going to have some hard times. If banks become irrelevant, governments would have to rethink how they handle monetary policies, since Bitcoin isn't controlled by any government and it is almost impossible to control it directly. On the upside, Bitcoin could help out people who don't have access to traditional financial services, which could in turn help in global economic development.

DoverDoane

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Quote from: CarnagexD on March 31, 2023, 11:47:05 AM

I think it will completely change how people will live their day to day lives. Imagine adopting bitcoin and everything around you adapts, it'll will be inevitable to change your lifestyle as well. In financial institutions, I think one by one people will adopt Bitcoin as a means of payment and there'll be more competition in the banking industry. Some, especially businessmen, may choose to use Bitcoin exclusively which can lead to a decrease in demand for banks. Since Bitcoin is decentralized and if it will remain decentralized, it will not be controlled by the government but it could have implications for the role of governments in controlling the demand and supply. In the end if bitcoin will become a worldwide currency, it has to work hand on hand with the government and the latter has to adapt with the cryptocurrencies' policies to ensure stability. And I find this ironic, government adapting to the crypto's policies, the same reason why I don't think wealth and power will be distributed appropriately. Those who have invested and started in Bitcoin early could become extremely wealthy, while those who have little or no knowledge about it at all may be left behind. It will also be difficult to implement equity since taxes and rules can't be imposed as needed because there'll be limitations.

Tho it is very notable that Bitcoin will have a major effect in all the factors stated, it cannot completely replace the traditional systems that we have. Little by little people will adapt and it'll take hundred of studies to actually learn how to utilize Bitcoin in the global economy.

Like the beginning of the first appearance of bitcoint, there are many new issues circulating about it, because it is still relatively new and afraid of things like security and vulnerable identity data when transacting with bitcoint, then over time and market demand for bitcoint is increasing and investment vehicles are becoming more because of bitcoint, the government stepped in to provide related regulations, and now bitcoint plays a big role in changing the world economy.

pooya87

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It depends on bitcoin's volatility. As long as bitcoin price remains volatile it is not the best option for mass adoption because it remains a currency and the ups and downs its value has hurts its usage. But assuming with mass adoption comes stability then bitcoin is THE best option to be used because it is the only existing form of "money" that is far superior to the fiat that is currency and has inflation as its main characteristic (ie. lacks store of value characteristic) while bitcoin does not.

Solosanz

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Quote from: cafter on March 31, 2023, 10:38:04 AM

how would the wideespread adoption of Bitcoin as a primary means of payment and store of value affect the global economy, including the stability of traditional financial institutions,
the role of governments in monetary policies, and distribution of wealth and power among different groups in society?

Bitcoin price won't stable, since the supply is limited and people are use Bitcoin as a primary means of payment, it should make the price of Bitcoin keep increasing.

The role of governments about this case, they will ask every Bitcoin user's to use their centralized exchange in order to easily track everyone profit and wealth to collect tax.

Government will not give away free Bitcoin to poor people, distribution of wealth isn't a problem, but the job demands are their problem.

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Quote from: pgbit on March 31, 2023, 06:46:55 PM

Quote from: cafter on March 31, 2023, 10:38:04 AM

how would the wideespread adoption of Bitcoin as a primary means of payment and store of value affect the global economy, including the stability of traditional financial institutions,
the role of governments in monetary policies, and distribution of wealth and power among different groups in society?

The widespread adoption of Bitcoin as a primary means of payment and store of value would have a profound impact on the global economy. It would create instability in traditional financial institutions as it would erode their monopoly on currency and payments. Governments would be forced to reconsider their monetary policies, as their ability to control the money supply and manipulate exchange rates would be drastically reduced. Furthermore, the distribution of wealth and power among different groups in society could be drastically altered, as Bitcoin’s decentralized nature would make it more difficult to regulate and control. With the increased volatility of Bitcoin, it could be possible for some groups to gain a disproportionate advantage over others, depending on their access to technology, resources, and knowledge.

If bitcoin is widely adopted as a means of payment and store of value, it will seriously affect traditional financial institutions as well as the power of the government, as you say. Then I believe we will never see that happen, the government will do its best to stop bitcoin and make it never popular.

For me, bitcoin is an alternative, it cannot replace the current banking and fiat system. So widespread adoption of bitcoin will not have any serious consequences for our government or our economy. On the contrary, there will be more positive effects.

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Quote from: cafter on March 31, 2023, 10:38:04 AM

how would the wideespread adoption of Bitcoin as a primary means of payment and store of value affect the global economy, including the stability of traditional financial institutions,
the role of governments in monetary policies, and distribution of wealth and power among different groups in society?

Bitcoin was not created to help governments. It was created to help people have financial freedom with their own keys. With Bitcoin private keys, they have their own banks and their coins won't be seized by governments or banks if they don't commit crimes.

Governments have to solve their problems from their economic designs, policies and Bitcoin can not engage with them.

Fortunately, Bitcoin can help to redistribute wealth in society. With more people get rich by Bitcoin, we are witness wealth distribution wave globally.

pgbit

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Quote from: cafter on March 31, 2023, 10:38:04 AM

how would the wideespread adoption of Bitcoin as a primary means of payment and store of value affect the global economy, including the stability of traditional financial institutions,
the role of governments in monetary policies, and distribution of wealth and power among different groups in society?

The widespread adoption of Bitcoin as a primary means of payment and store of value would have a profound impact on the global economy. It would create instability in traditional financial institutions as it would erode their monopoly on currency and payments. Governments would be forced to reconsider their monetary policies, as their ability to control the money supply and manipulate exchange rates would be drastically reduced. Furthermore, the distribution of wealth and power among different groups in society could be drastically altered, as Bitcoin’s decentralized nature would make it more difficult to regulate and control. With the increased volatility of Bitcoin, it could be possible for some groups to gain a disproportionate advantage over others, depending on their access to technology, resources, and knowledge.

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Quote from: cafter on March 31, 2023, 10:38:04 AM

how would the wideespread adoption of Bitcoin as a primary means of payment and store of value affect the global economy, including the stability of traditional financial institutions,
the role of governments in monetary policies, and distribution of wealth and power among different groups in society?

Widespread adoption of Bitcoin as the primary means of payment and store of value will affect the global economy by giving opportunity to the unbanked and underbanked the opportunity to participate in a global economy.

With Bitcoin as the primary means of payment, it will reduce the authority of traditional institutions as intermediaries on the transaction. It may cause a huge loss to these establishments.

Obviously, the government has to accept Bitcoin as a mode of payment if not a legal tender, that way Bitcoin can be recognized by many merchants and stores, it will bring new potential income to the governent as new start ups arise taking advantage of Bitcoin as payment.

With regard to the distribution of wealth, I do not think it will change, the distribution will still remain imbalanced, with more wealth to those people who are pioneers or early birds, and obviously those who have the wealth has the power. So I think it is just a change of hands when it comes to wealth and power but the system will stay the same.

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