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Topic: How can third-world countries counter inflation using bitcoin? - page 4. (Read 529 times)

hero member
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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.
Having that high adoption rate, this also makes it more of Bitcoin as an asset or a store of value that we're having. That's the main reason why many of us are holding it and that's for investing purposes although it doesn't ignore the use case of it for being payment and that's why Bitcoin is amazing. Whether you use it as a store of value or for payment, that's how flexible Bitcoin is.

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.
It's because Bitcoin has a limited supply and described as a deflationary asset. In general, whether you own bitcoin or not, we have to beat inflation in any ways that we can. Extend your investments in other assets and have more source of income.
legendary
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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.
hero member
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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.
sr. member
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Bitcoin has played a significant role in how transactions in developing countries are conducted at international level and also aided in them having something to invest or save their money into without been worried in any way of devaluation. Before the use of bitcoin for this many of the citizens of developing countries usually save their money in top fiat currencies like dollar just to beat inflation heavily affecting their own local currencies but the amount of this international currency like dollar’s available to them is not enough and also getting then through banks is a long procedure, right now bitcoin had breech that gap. Not only about saving into bitcoin but many from this developing countries can now purchase goods or services without converting their currency to any international currencies but rather with bitcoin from platforms that accept bitcoin as payment.

or hold onto their tokens as an investment.

It should be noted that tokens shouldn’t be used as investment because most of them do not have a long retention period and as such they should be as just things that can be traded. An investment is something that can be hold for a long time and only bitcoin has that potential
full member
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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.
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