Bitcoin can be a powerful currency against inflation on long term, however, on short term it offers serious risks for holders, as the price is constantly fluctuating, what can happen downside pretty often during a bearish market, like the one we are facing right now. I imagine a country which decided to invest part of its public funds into BTC would suffer serious criticisms from oppositors inside the country, who would incite the population against the government through potential rebellions.
It has already happend in El Salvador, but could be much worse in a country with a history of aggressiveness among its citizens. To make a decision like that, the government has to make sure it's a popular proposal accepted by the largest portion of the society.
Topic: How can third-world countries counter inflation using bitcoin? - page 2. (Read 529 times)
September 25, 2023, 09:00:57 AM
September 25, 2023, 08:44:40 AM
No, the country itself is less likely to be affected by inflation but "We" the people were. We can counter it ourselves if we have extra funds to invest in precious metals/stones and of course the one you just said "Bitcoin" before inflation will hit. Since you are referring to third world countries, we expect more and more less fortunate individuals will be affected and has no time to react when inflation will arrive at everyones doorsteps. My country's monetary reserves is not backed by Bitcoin or gold and if it was I don't really think if things will go right during inflation not so sure.
September 25, 2023, 08:28:10 AM
First of all, inflation and currency devaluation are two different things. Inflation is when the prices of goods and services go up significantly, and currency devaluation is when a country's currency starts losing value, I know that these two are directly proportional to each other but they are different things, and what you have explained in your post isn't about countering inflation but it's about finding a way to stay safe from currency devaluation through Bitcoin.
Even in third-world countries, the biggest victims of inflation are the poor population of those countries, and by poor I mean those who don't have access to electronic devices or internet connections, who barely eat a meal twice a day, and who barely make it through if the inflation goes higher than their capacity to survive, and Bitcoin can't really do anything for them since you need resources to be able to make use of Bitcoin and other helpful technologies.
Even in third-world countries, the biggest victims of inflation are the poor population of those countries, and by poor I mean those who don't have access to electronic devices or internet connections, who barely eat a meal twice a day, and who barely make it through if the inflation goes higher than their capacity to survive, and Bitcoin can't really do anything for them since you need resources to be able to make use of Bitcoin and other helpful technologies.
September 25, 2023, 04:53:24 AM
"Countries" can not do that, individuals may.
Actually, they can. The point is that in 3rd world countries usually there is no banking system at all and it is very complicated and expensive for them to create one from scratch, especially when the monetary system is bad. Therefore, it may be way easier for them to make a crypto friendly financial infrastructure from the very beginning while all other countries gonna have to adopt crypto into their existing system which takes way more efforts.
Are you sure there is no banking system in developing countries? Have you ever checked your country's financial system? I think it is an exaggeration to say that developing country has no banking system. Maybe there ar lots of people who are unbanked but to say a country without a banking system is ignorance at its best.
Bitcoin at its current state cannot counter inflation when we are talking about a national-level event, but as an individual, it may be. Since I believe Bitcoin activity is too minimal to have an impact on a national level.
September 25, 2023, 04:50:06 AM
They couldn't beat inflation nor did it help them. Those people who live in these third-world countries have little chance to invest in Bitcoin, they'll take fiat instead and suffer inflation.
Generally, using Bitcoin is not the solution to inflation as it comes whether we like it or not. The only way to help us is to make more investments and sources of income. I'd say that those who live in poor countries will suffer the most while those who live in rich countries take advantage of the situation and become richer.
Generally, using Bitcoin is not the solution to inflation as it comes whether we like it or not. The only way to help us is to make more investments and sources of income. I'd say that those who live in poor countries will suffer the most while those who live in rich countries take advantage of the situation and become richer.
Why do people in the third world have few opportunities to invest in bitcoin? I'm also from the 3rd world and I know many other people are also investing in bitcoin because of inflation and currency devaluation in my country.
Bitcoin can help us fight inflation but only partially and cannot rely on it completely. Furthermore, it only has an impact on individuals, it cannot have any impact or help on the inflationary economy of a country or the world. Some people are exaggerating bitcoin more than necessary. Bitcoin is just currency, just an asset like gold, how can it help the country's economy from inflation while gold does not?
September 25, 2023, 02:20:21 AM
Third-world countries can benefit from Bitcoin if they legalize and regulate Bitcoin this way, they will get income tax from the people involved in cryptocurrency. Still, it will not solve the inflation problem. At the moment, Individuals are benefiting from Bitcoin, but their countries are losing their money because all these people are not paying taxes. At the moment, Bitcoin can not be considered an inflation hedge for those people because they are paying transaction fees, then they are paying fees to exchange them for local currency. Price volatility is another concern.
September 25, 2023, 12:51:16 AM
Bitcoin alongside other cryptocurrencies has aided the economic development of many countries.
How has BTC done that, as far as i know BTC doesn't directly help in the general economic development of a country, it can make cross-border payments easier for people of any country and it could also help some people make some profit if they can hold on to BTC for the long term, but BTC cannot bring a country out of inflation for example or better their standard of living. Governments wouldn't even adopt BTC, they'll prefer to print billions in fiat backed by thin air to make inflation better for the short while, and worse in the long term.I'm a bit surprised at how critical people are with Bitcoin and inflation.
Once inflation has already hit, and the currency someone holds no longer has the purchasing power that it once had, then yes, Bitcoin isn't helpful. However, would someone holding Zimbabwe dollars in 2017 benefit from trading some portion of their dollars in exchange for Bitcoin? Seemingly yes, as Zimbabwe dollar inflation would hit 500% just a year later.
Bitcoin should be used as a precaution for inflation. Certainly citizens of third world countries would benefit from using it, even if it's a small amount. Their currency isn't as reliable as first world currency.
Zimbabweans had to face a terrible reality, not just supposition. Bitcoin could have protected against hyperinflation. But critics refuse to explore digital currencies' unexplored waters, drowning these prospects with criticism. Bitcoin may protect against inflation, especially in nations where the currency is volatile like a ticking time bomb. People should wake up to the truth.
September 24, 2023, 06:47:27 PM
Well for one and this is a bit drastic and linear, they could use bitcoin as a form of reserve currency to use in times of trouble. Inflation is a thing that cannot be stopped, only delayed. So in the case of a raging inflation coming over the economy of a country they can employ this method and save the people from the price hikes, and all that stuff by using some of the bitcoin or all the bitcoin they stored to fund the whole country's economy, and hopefully stave off the inflation.
They can also literally just allow people to use bitcoin, which is arguably safer and much more sensible in the grand scale of things.
They can also literally just allow people to use bitcoin, which is arguably safer and much more sensible in the grand scale of things.
September 24, 2023, 04:32:16 PM
They couldn't beat inflation nor did it help them. Those people who live in these third-world countries have little chance to invest in Bitcoin, they'll take fiat instead and suffer inflation.
Generally, using Bitcoin is not the solution to inflation as it comes whether we like it or not. The only way to help us is to make more investments and sources of income. I'd say that those who live in poor countries will suffer the most while those who live in rich countries take advantage of the situation and become richer.
Generally, using Bitcoin is not the solution to inflation as it comes whether we like it or not. The only way to help us is to make more investments and sources of income. I'd say that those who live in poor countries will suffer the most while those who live in rich countries take advantage of the situation and become richer.
September 24, 2023, 03:48:33 PM
Bitcoin alongside other cryptocurrencies has aided the economic development of many countries.
How has BTC done that, as far as i know BTC doesn't directly help in the general economic development of a country, it can make cross-border payments easier for people of any country and it could also help some people make some profit if they can hold on to BTC for the long term, but BTC cannot bring a country out of inflation for example or better their standard of living. Governments wouldn't even adopt BTC, they'll prefer to print billions in fiat backed by thin air to make inflation better for the short while, and worse in the long term.I'm a bit surprised at how critical people are with Bitcoin and inflation.
Once inflation has already hit, and the currency someone holds no longer has the purchasing power that it once had, then yes, Bitcoin isn't helpful. However, would someone holding Zimbabwe dollars in 2017 benefit from trading some portion of their dollars in exchange for Bitcoin? Seemingly yes, as Zimbabwe dollar inflation would hit 500% just a year later.
Bitcoin should be used as a precaution for inflation. Certainly citizens of third world countries would benefit from using it, even if it's a small amount. Their currency isn't as reliable as first world currency.
September 24, 2023, 02:44:45 PM
Bitcoin alongside other cryptocurrencies has aided the economic development of many countries.
How has BTC done that, as far as i know BTC doesn't directly help in the general economic development of a country, it can make cross-border payments easier for people of any country and it could also help some people make some profit if they can hold on to BTC for the long term, but BTC cannot bring a country out of inflation for example or better their standard of living. Governments wouldn't even adopt BTC, they'll prefer to print billions in fiat backed by thin air to make inflation better for the short while, and worse in the long term. 
September 24, 2023, 02:30:07 PM
Bitcoin alongside other cryptocurrencies has aided the economic development of many countries.
I have never heard that any country has a significant macro economic development because of bitcoin, or in any way it's helped by Bitcoin. Sure that some people are helped by Bitcoin in all over the world, but it's that many, and it won't helped the macro economy in any country.
this has made people to turn to cryptocurrency like bitcoin an asset that maintain its value over time to hedge against inflation.
Bitcoin is not a tool to hedge against inflation, though it's decentralized and hardly/won't be manipulated by central bank it's still currently has high volatility, it's barely maintain it's value. And even if it can counter inflation, it won't be enough to help to develop economic in a country, it's too complicated, too many factors.
September 24, 2023, 09:52:00 AM
Bitcoin alongside other cryptocurrencies has aided the economic development of many countries.
This topic has been discussed a lot, and everyone has their own opinion in this regard, but my opinion is that if we look at the countries that have regulated cryptocurrency, cryptocurrency has really helped the economic development of all these countries. I have helped to some extent—not completely, but to some extent, it has been acceptable. Examples of these are in front of us, like El Salvador, the United States, Singapore, and India. All these countries have improved their economies to a great extent by benefiting from something as reliable as Bitcoin. Moreover, Bitcoin adheres to all the standards that are acceptable for a better economy... But in my opinion, it is not wise to relay the economic status of a country on Bitcoin, because Bitcoin is very volatile, so it is not wise to leave the economy on such a volatile thing.But this is my opinion; one can disagree.
I agree that everyone has their own opinion on any issue but to be more realistic, we need to have some evidence of what we say. Do you have any evidence of how bitcoin is helping to improve the economies of the US, India or Singapore? Because I have never heard any news about this before.
According to a report a few days ago, the entire stock market has evaporated 1 trillion USD after the Fed's hawkish statements, and if compared with the cryptocurrency market, with a total capitalization of more than 1 trillion USD. So in your opinion, can bitcoin really improve the economy of a country like the United States?
September 24, 2023, 09:40:56 AM
Bitcoin alongside other cryptocurrencies has aided the economic development of many countries.
This topic has been discussed a lot, and everyone has their own opinion in this regard, but my opinion is that if we look at the countries that have regulated cryptocurrency, cryptocurrency has really helped the economic development of all these countries. I have helped to some extent—not completely, but to some extent, it has been acceptable. Examples of these are in front of us, like El Salvador, the United States, Singapore, and India. All these countries have improved their economies to a great extent by benefiting from something as reliable as Bitcoin. Moreover, Bitcoin adheres to all the standards that are acceptable for a better economy... But in my opinion, it is not wise to relay the economic status of a country on Bitcoin, because Bitcoin is very volatile, so it is not wise to leave the economy on such a volatile thing.But this is my opinion; one can disagree.
September 24, 2023, 08:35:06 AM
"Countries" can not do that, individuals may.
Actually, they can. The point is that in 3rd world countries usually there is no banking system at all and it is very complicated and expensive for them to create one from scratch, especially when the monetary system is bad. Therefore, it may be way easier for them to make a crypto friendly financial infrastructure from the very beginning while all other countries gonna have to adopt crypto into their existing system which takes way more efforts.
September 24, 2023, 07:53:33 AM
After purchasing bitcoin through platforms accessible to their countries, bitcoin holders in third world countries can trade Bitcoin for profits or hold onto their tokens as an investment.
Are you saying that because in those countries people usually have a lot of money to invest?
Bitcoin is an asset, and like other assets could be used as an investment, this is the best way I like people to view Bitcoin, not as a hedge/counter against inflation, or else it might break the heart of many during the bearish season.
I don't know what you mean. A hedge against inflation is also an asset and an investment, like gold for example. They are not opposites.
If we talk about third world countries in general, the only way I see that they can take advantage of Bitcoin to try to beat inflation would be to legalize it as a currency, as they have done in El Salvador, to try to attract investment and have an alternative to remittances and the dollar.
On the other hand, if we are talking about people living in those countries, it will depend on the individual situation. Someone who has such a low income that he spends it all and still lacks it, the Bitcoin will not help him against inflation because as soon as he gets paid he will spend it, besides paying transactions fees and surely a fiat conversion fee to be able to spend. People in those countries that have a higher income and can save can use the Bitcoin against inflation, but as in the rest of the world.
September 24, 2023, 05:51:12 AM
Bitcoin alongside other cryptocurrencies has aided the economic development of many countries. Bitcoin is typically used for online transaction and businesses in third world countries despite widespread poverty, this is because people can easily connect to the internet and participate in the crypto economy in many developing countries such as India and continent like Africa have high cryptocurrency adaptation rate. After purchasing bitcoin through platforms accessible to their countries, bitcoin holders in third world countries can trade Bitcoin for profits or hold onto their tokens as an investment. Inflation which is characterised by devaluation of currency alongside increasing price of goods and services, this has made people to turn to cryptocurrency like bitcoin an asset that maintain its value over time to hedge against inflation.
I answer the question in the title: no way.In the title you talk about countries, and in the post you write about the inhabitants of these countries. These are different things and bitcoin will have completely different effects in both cases.
Give examples of countries for which bitcoin contributed to economic development. It seems to me that you are mistaken in voicing this, because btc is not capable of changing the backward economies of third world countries and such examples do not exist at the moment. The problem with the economy of such countries must be eliminated in a different way, through a set of measures and actions, and not just by buying and selling bitcoin. BTC is not able to solve all the economic problems of both individuals and entire countries and is not a panacea for this.
But bitcoin can help solve the problem of inflation of individual people. There's certainly no arguing here.
September 24, 2023, 05:38:00 AM
Bitcoin alongside other cryptocurrencies has aided the economic development of many countries. Bitcoin is typically used for online transaction and businesses in third world countries despite widespread poverty, this is because people can easily connect to the internet and participate in the crypto economy in many developing countries such as India and continent like Africa have high cryptocurrency adaptation rate. After purchasing bitcoin through platforms accessible to their countries, bitcoin holders in third world countries can trade Bitcoin for profits or hold onto their tokens as an investment. Inflation which is characterised by devaluation of currency alongside increasing price of goods and services, this has made people to turn to cryptocurrency like bitcoin an asset that maintain its value over time to hedge against inflation.
I answer the question in the title: no way.In the title you talk about countries, and in the post you write about the inhabitants of these countries. These are different things and bitcoin will have completely different effects in both cases.
Give examples of countries for which bitcoin contributed to economic development. It seems to me that you are mistaken in voicing this, because btc is not capable of changing the backward economies of third world countries and such examples do not exist at the moment. The problem with the economy of such countries must be eliminated in a different way, through a set of measures and actions, and not just by buying and selling bitcoin. BTC is not able to solve all the economic problems of both individuals and entire countries and is not a panacea for this.
But bitcoin can help solve the problem of inflation of individual people. There's certainly no arguing here.
If bitcoin serves as currency, it will be used in commodity transactions, how can it help improve a country's economy? If bitcoin is an investment, meaning there will be risks and depending on the possibility there will be profits or will lead to serious losses, how can bitcoin improve the national economy? Many people are too delusional and exaggerated about the power of bitcoin, they think that bitcoin is a miracle medicine that can cure all diseases in this world, LOL.
You are right, bitcoin will only have an impact on the individual and whether that individual can improve their economy or not depends entirely on their skills. Bitcoin is just a support tool, Bitcoin does not guarantee anyone's economic improvement.
September 24, 2023, 05:17:25 AM
Bitcoin is an asset, and like other assets could be used as an investment, this is the best way I like people to view Bitcoin, not as a hedge/counter against inflation, or else it might break the heart of many during the bearish season.
Economists have now started adding the clause that asset has their gaining moments and losing moments as well, and at times, when the investor needs the money might be the bearish times, so the gain is not guaranteed. Imagine those who purchased Bitcoin with this inflation-countering mentality in 2021 and needed the money for a crucial project this year. Their lot is obvious even without saying further as they might have lost half of their money by now.
The inflation peg mentality might work in the long term (even though we're still all hoping, there is no guarantee), we should learn how to manage our risks in Bitcoin, people also lose via it.
Economists have now started adding the clause that asset has their gaining moments and losing moments as well, and at times, when the investor needs the money might be the bearish times, so the gain is not guaranteed. Imagine those who purchased Bitcoin with this inflation-countering mentality in 2021 and needed the money for a crucial project this year. Their lot is obvious even without saying further as they might have lost half of their money by now.
The inflation peg mentality might work in the long term (even though we're still all hoping, there is no guarantee), we should learn how to manage our risks in Bitcoin, people also lose via it.
I agree with you on this if we are talking about the short term. Many people still say that bitcoin is a good hedge against inflation, but they don't know that bitcoin's short-term volatility would break our hearts if we relied solely on bitcoin to deal with inflation. For example, for those who bought bitcoin for $40k and at the current price, will bitcoin help them fight inflation or make them worse?
But in the long run, with scarcity and demand still rising, bitcoin is truly an inflation-proof asset and could outperform gold because its price increases more than gold.
September 24, 2023, 04:55:06 AM
Bitcoin alongside other cryptocurrencies has aided the economic development of many countries.
I don't think that apart from bitcoin and other cryptocurrency can aid the economy of any country. Moreover, it is the government of a country that can help its economy to grow. If the developed country economy is not richm there is nothing bitcoin can do to the economy. Bitcoin can help individuals in various aspects, like trading, investing, mining. It is only a country that has legalize bitcoin that the government can task all bitcoin related field. Investors prefer to hold bitcoin because it is gives them the confidence that they will make profit, and their funds wouldn't depreciate, and this is the major reason why I will advice more people to adopt bitcoin, when I am explaining to then.Jump to: