Topic: How can third-world countries counter inflation using bitcoin? (Read 541 times)

Currently, Bitcoin is used not only in Third World countries but all over the world. And Bitcoin is not poverty Bitcoin is the most traded store of value currently and people invest mostly in it to grow money. Moreover, the people of a country can benefit and profit when they transact Bitcoin and do business with BTC. Moreover, there is a lot of Bitcoin validity, and they have adopted Bitcoin as their currency to become economically self-sufficient. Also, some countries have made bitcoin illegal because of the volatility in the price of bitcoins the governments of countries don't trade bitcoins, but of course all countries use bitcoins secretly I think. Moreover, the rate of inflation in many countries is so high that if Bitcoin is traded and used in that country, it will not be able to make that much profit and become economically self-sustainable. However, the countries that traded Bitcoin long ago are currently benefiting from the use of Bitcoin.

Bitcoin is unlikely to be able to fully help countries fight inflation, but it can help anyone who uses it fight inflation by using it as a hedge. Bitcoin has good performance and is expected to be able to give you a return of more than 10% in a year (the minimum percentage in my opinion). So, imo this is one of the good asset categories that can protect you from losing the value of fiat currency.

Gold may be one hedge that you can consider against inflation, but I believe several other investment instruments that have the potential to give you commensurate returns are also worth considering. So in conclusion the country cannot fully utilize bitcoin to fight inflation, but bitcoin users who believe in this asset can certainly take advantage of it.

I would recommend that third-world countries should slowly adopt it as a way of controlling inflation by having their citizenry access some store of value which is more stable. Further, remittances being done through Bitcoin tremendously lower the cost of transactions while gaining purchasing power and independence from financial instability within the economies they are working with.

Have you ever thought about the case of bitcoin losing 80% of its value like in the 2022 bear season, what will happen to that country's economy if they use bitcoin for their economy? Using bitcoin to fight inflation for the national economy is the idea of people who have no knowledge of economics and bitcoin. Bitcoin is a volatile asset, how can a country's economy grow when it only relies on volatile assets?

Does Bitcoin Create Jobs? Does it bring stable income to people? That is the key for a country's economy to develop and when a country has a good economy, inflation and currency devaluation will decrease.

Will most people accept Bitcoin and get used to it?

Its great to have Bitcoin as a hedge against falling prices and to get money from taxes on crypto earnings, but the idea is based on the assumption that people know a fair amount about money. To use Bitcoin well, people need to understand how it works. You are right to be worried about how volatile Bitcoin can be. There are two side: it could give support, while it might not.

Governments promoting Bitcoin trading and crypto exchanges are good starts. But what about the prices of infrastructural development? As well as being physical, it is also educational. Its an uphill climb but, without a doubt, a climb worth considering and debating further. This has a lot to unpack and understand

Third-world countries can counter inflation using Bitcoin. Devaluation of the currency is a major problem, and using Bitcoin, they can avoid this devaluation of money, and BTC can be used as a hedge. By regulating Bitcoin, they can influence the general public to invest and store their money in Bitcoin and fight inflation. Facilitate buying and selling of Bitcoin by making a crypto exchange. By implementing a tax on crypto earnings, they generate revenue for welfare projects.
The major concern in doing all this is Bitcoin volatility. Mostly, the less fortunate countries are not implementing this idea because bitcoin prices can not be predicted, and they can lose money. Financial literacy is another major concern in these countries.

When cryptocurrency is part of your daily lives, you can tell that Bitcoin is the best currency to invest with especially if you're going to hold it for a long time, it might be volatile but you can trust that your money is safe here. Here in my Country, we are experiencing inflation because demand of the goods are immediate higher than the supply which could make the prices higher. Now, the reason is the running out of goods.

Bitcoin has a great advantage than using fiat currency because it's digital currency where you can easily buy or paid things to develop infrastructure in your country which is in very in need to counter or to recover from inflation. Bitcoin is a "buy-time".

In my case it is about how Bitcoin can help to save money even in an environment of corruption and authoritarianism. Let us agree that in many of the cases where Bitcoin has had success in developing countries, it is because there is a clear lack of trust in traditional banking and the circulating FIAT. It is the scenario in Argentina, Venezuela, Nigeria, etc.

Since Bitcoin cannot be touched by crooks, only by the rightful owner of the wallet, then it is certainly attractive for those who live under repression. 

Bitcoin may not be the ultimate solution for all of us who are in such situation, but it helps a bit. 

Even if someone were to invest in bitcoin at the peak and then they had to suffer the upcoming bear market, bitcoin can still be a better alternative than a fiat currency that is going through hyperinflation, as a currency experimenting 100% inflation per year loses half of its value every year, so even after a few years of a bear market you will still do better than those that just held their fiat, and if the inflation was higher than that then the better bitcoin performs compared to that currency, and when we add that not everything is negative and bitcoin can also skyrocket, then there is no comparison between the two.

With bitcoin your money will not only be saved but will also increase in value after some time. The value of money as a local currency deteriorates because of inflation as every country where there is inflation the devaluation of its currency take place very soon.

Bitcoin is the only way through which your money will not be effected by inflation so choose bitcoin to save your time and economize your money. There are also other ways through which the value of your cash remain save like that of gold but bitcoin is more secure and fast mechanism of saving and enhancing value of cash than gold.

Bitcoin price evaluation can help you to better understand the market which you can do with the help of watching video and joining certain group created by experts of trust.

With prices going up all over the world, its a rough ride, isnt it? I know exactly what you mean. Everyday transactions make it very clear that money is losing its value. I get it. 500 pesos used to feel like a mini-treasure box, but now its just a small amount of money, not even enough to cover a few daily costs.

The old ways of banking arent doing a good job of keeping the value of our hard-earned money. I totally agree with you that  Bitcoin and gold are ways to protect yourself from inflation. Even though there are only 21 million Bitcoins, which shows how rare they are, they do come with their own risks. Its kind of like walking a wire, right? You weigh the possible benefits against the obvious risks. We stay on our toes because we dont know what will happen next. But hey, if there's no risk, there's no gain, right?

Were you in a dream-like state when you were posting this?
First of all, in third world countries, it's not common to have access on computer, smartphone and on internet. Second, people in third world countries rarely know about Bitcoin (excluding El Salvador). Also, another problem that arises here is that people, especially in third world countries rarely know how to securely store their bitcoins.
Also, money doesn't come out of thin year in crypto world. In order for you to profit, someone has to buy bitcoin and pay a lot, no one is silly enough to put money in bitcoin pool and let poor countries cash out from this pool. It's not as easy thing as you make it sound.

People nowadays mistook the idea of investing. Investing is mainly done for preserving wealth and is very far from making money or wealth. It just sounds the same but they two are completely different ideals in finance. With Bitcoin's volatility, yes it has a greater advantage compared to other risk assets in terms of value appreciation. On the other hand, it also requires a greater risk of losing money faster.

Crypto indeed is fast phase investment which is also why people most of the time think that investment is just easy money. It isn't. Dealing with investment is such as trading is the hardest way of making easy money.

That's not true, every country has a reserve budget and they are diversified into many different asset types, of which gold is always the highest priority. Because gold is stable and does not lose value over time, it is natural for them to hoard gold because the budget can be used at any time and in any emergency. But if it were bitcoin, it would be a big problem if by the time the government needed money for an emergency and bitcoin was dumped, the government would easily default. Countries that default on their debt are mostly countries that do not have stable budgets. Bitcoin is actually so volatile, it cannot fit into a country's budget.

I think that can still be fine, because countries are large and waiting for them is easier than waiting when you are a regular person like us. Those nations could invest hundreds of millions of dollars, even billions of dollars and not be worried about it, and can wait for decades if they have to or want to and that would be fine.

Most of them have gold that way too, tens of billions of dollars worth of gold, just sitting idle at vaults not doing anything really. This is why I really do not think that it would be a very tough deal, it should be quite possible. I get that it may not be that simple but it could be very well made and should be entertaining for many people as well, I personally would prefer something like that for my nation.

Their something I want some of us to understand concerning bitcoin, I know quite well that bitcoin is all about a digital currency, it's currency is something that can use every where you are, currently many people who is in outside countries doesn't send money home through bank right now, what people do about sending money right now to their beloved ones from another country, I will send the money directly to bitcoin because it will faster get to the place I wanted, so while people especially government is been against bitcoin is because they feel that bitcoin will be use for money laundering across other nations and that is while many nations fails approve for bitcoin to be a legal tender. The aspect of online transaction many uses bitcoin because its easier to fund an online payment instead of using either debit card or credit card.

If we save in local currency, the value of our money will decrease day by day. There are many ways to preserve the value of our money. One of these ways is Bitcoin. It's important to note that when the price of Bitcoin falls, you can't protect the value of your money. If you are a long-term Bitcoin investor, Bitcoin will protect the value of your money and allow you to make a profit, just like before.

When we invest, we also need to know the risks. That's why we need to know every detail about what we're investing in.

The third-worlders deserve some respect. Most of them are not investing with free money. They work for it.   And they are relatively in similar economic category with first & second worlders who are categorized as middle/third class citizens, and their wealth and income are relative to prices of things in their countries. Things typically cost more in first & second world countries, they compensate that with high wages.   And what they earn from their Bitcoin investments is relative to how much they invest.

 The purchasing power of those from first and second world countries only become stronger when they buy things from third world countries.


The high number of Bitcoin/crypto investors from third-world countries is mainly due to how Bitcoin/crypto is promoted or spreads there. Not necessarily due to poverty.

In regards to how they can counter inflation using Bitcoin, well, I think less spending and more investing/saving in Bitcoin could help. Too much spending or high demand with low supply can cause inflation. So, more savings and less spending should work.

For sure inflation is already a big problem all over the globe and we can see even powerful countries are experiencing problems with inflation, I guess it is obviously a problem by the government since they are just the ones who print money, even here in my country it is a big issue and I can clearly notice how the basic things increase its price and a certain amount of money can only buy a few things unlike back in the day where the value of our currency was still good, probably a 500pesos is still a big amount of money, but today it wasn't enough for 1 day on your whole family or for sure 1-week food.

One of the things that you could do is to invest your money not just save it since if we are just going to put our money in the banks it is surely going to get hit by inflation and over time the value is just going to decrease over time, Putting our money to something like Bitcoin, cryptocurrency or gold could surely counter the inflation, for sure there are some exception on Bitcoin since by its nature it only has 21 million supply overtime we could easily expect the market price to increase its value theoretically, that's what we all believed but still it's a risky invest since it wasn't guaranteed that it's going to happen and we dont know it is possible that the price could reach zero at some point.

In my opinion, the trick is just to save enough, if you save a good amount of money invest it in assets so that you can avoid and counter inflation. Just save enough probably some savings like emergency, and do retirement, insurance, etc.

I think I agree that Bitcoin is somehow a counter against inflation. An asset can also be a counter against inflation and you rightly stated that Bitcoin is an asset.
Inflation rate in my country is officially at 25% right ght now, (it's actually much higher than that but the government cover it up with lies). So imagine I try to save money for a long term in my local currency, what do you think will happen to the value of that money after let's say 2 to 3 years? Considering the fact that the inflation rate keeps rising? 

We can never truly avoid inflation because we're going to buy stuff and those things are going to be very expensive but you can give your savings a standing chance against inflation if it's in Bitcoin.