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

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.

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.

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.

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.

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?

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. 

Amazingly, the world refuses to view Bitcoin as a lifeboat in the inflation storm. Your argument has merit. People seem to have blinders on, unable to perceive their fiat currencies' purchasing value diminish. They criticize Bitcoin yet ignore inflation's destruction of their currencies. It seems like a big conspiracy to damage cryptocurrencies' potential.

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.

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 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.

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.

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 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.


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.

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?

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 mentioned a couple of reasons why they can't like volatility but also your own statements could be used as another reason why they can't. A country that is so underdeveloped that doesn't have a banking system, also doesn't have a lot of other infrastructure like internet connection/coverage. Which means using bitcoin is not even possible in such a country at large let alone be able to solve any of their economical problems.

This is exactly my point when I see posts or threads praising how Bitcoin is going to save the poor. It's a great investment that is probable to yield great returns in the upcoming years; however, the majority of people in third-world countries have extremely insignificant incomes to backup Bitcoin purchases. Acquiring $30 worth of Bitcoin per month isn't going to cut it. It's already difficult for western countries to invest, which have higher wages, let alone third-world ones. Thus, Bitcoin and cryptocurrencies are incapable of helping those against inflation since they're already spending all their salary just to cover their basic needs, and sometimes even that's not enough. As I've said before, Bitcoin might be great for an average worker who's trying to break free and achieve a better financial state.

I also noticed the discrepancy, at an individual level bitcoin can really help those living in a third world country, however bitcoin is not the only way they can counter inflation, as they could use gold, other fiat currencies and depending on how bad inflation is at the moment, even medicines and toilet paper could be used as a way to protect your wealth, but at the country level this has not happened, as when it comes to the people in power they will see bitcoin and any way to store wealth other than their fiat currency as an enemy, something we have seen many times on the past.

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.

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.

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.


 

I can't say I agree with the impact of bitcoin being so small or insignificant when it comes to helping alleviate inflation in a country let alone a third-world but I definitely agree with you 100% that corruption in the government is a pretty big help if a country wants to combat inflation, I haven't done a research yet but there's probably studies to prove that there's a relativity when it comes to a country's prosperity and it's government's competency and incorruptibility.

Bitcoin might be a long term hedge against inflation, but in the short term, Bitcoin definitely isn't a hedge against inflation.
Last year, the inflation levels were very high, but the Bitcoin price dropped down to 15K USD in October 2022.
Bitcoin(and altcoins) received widespread adoption in the underdeveloped countries because of two main factors:
1.Weak national currencies of those countries.
2.High amount of unbanked people, who are excluded from the traditional banking system due to various reasons.

I don't think that government can overcome inflation with the help of bitcoin because first of all bitcoin is not allowed in some countries due to decentralization and if it become legally acceptable even then there will be hard for government to use it for the reduction of inflation.

Although it can be possible that people living in a specific country select bitcoin as an investment to reduces their financial burden and make their income more valuable.

The Leader of a country is changing regularly so may be one leader think about the country but not all leaders has same thoughts therefore they can also use this investment money in Bitcoin for their benefit only.

Bitcoin does not solve a country's inflation problem, but it may help its users to reduce the impact of inflation. Bitcoin users can use it as an investment or hedge against loss of fiat value, but it will never solve all of each user's problems.

The real use cases of bitcoin in some third countries may still be limited by regulations, but because of its anonymity some users can also use it for some purposes. It is not legal for me to use bitcoin as legal tender in my country, but bitcoin is a better investment for mitigating the impact of inflation than some other investment options.

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.

let me give you my opinion. bitcoin does not significantly help the economy of any country, it only helps individual economies. even making bitcoin an asset to fight inflation is not enough because bitcoin does not have the ability to suppress inflation at the national level. suppressing inflation can only be done by government decisions through their economic policies.

i know it is true that bitcoin is an innovation that helps many people, but in this matter there is no need to overestimate bitcoin because bitcoin is not like bread from heaven that solves hunger, bitcoin is not like that, bitcoin only helps individuals and only just that.

How accurate is the information that op presents? I mean, it makes sense that countries with small economies (I'm phrasing it this way because the term 'third world' doesn't really apply to today's political and economic climate) would use Bitcoin more to escape the downfalls of their fiat and local economies.
There are different lists of countries by Bitcoin adoption, but I'll rely on the most recent one, which seems reputable to me.
Here's a list from most (by percentage of the total population) to least, a top-10:
1. Vietnam
2. Ukraine
3. USA
4. Thailand
5. India
6. Brazil
7. Pakistan
8. Russia
9. Philippines
10. Nigeria
India, Brazil, & the USA have very high GDP. Russia, Vietnam, Nigeria, Pakistan, Thailand, and the Philippines are middle-tier. Ukraine is significantly lower. So it doesn't really seem that it's poor developing countries using Bitcoin, there are clearly countries with strong, medium, and pretty low-level economies there.

The passion with which emerging nations have embraced cryptocurrencies, particularly Bitcoin, is not by chance. You ever wonder why? These nations are susceptible to inflation and economic instability because the global financial system has frequently been rigged against them. However, Bitcoin appears, upending the existing quo and giving the "underdogs" more influence. Online transactions are simply one aspect of the uprising against a broken system. Many in the West applaud Bitcoin's decentralized nature, but in nations like India and parts of Africa, its more than just decentralization; its a lifeline. It provides a means of escaping a historically unjust economic structure. The ruling class wont admit it because they like to maintain power. But the reality is that people are deciding their own economic futures, and Bitcoin is the tool they are employing.

Bitcoin does not aid anyone or any country because the times for faucets with good value is no longer there. If you or a nation want to have Bitcoin, use your money to buy it. So aiding is not relevant term to use here.

It is not different too much than bank transfer or VISA transfer, Paypal, etc. You can do it similarly like with Bitcoin but you forgot most important technical strength of Bitcoin transaction, no censorship, no charge back and its network is strongly decentralized, hardly to be attacked and roll back the blockchain.

Bitcoin is a good option for underbanked, unbanked people. If they are unable to access services from banks, they can use Bitcoin blockchain.

How many Bitcoin confirmations is enough?

Individually, you can get rich with Bitcoin and it is more easily to make your investment decision. It is personal decision and personal taste to accept risk to chase profit and wealth.

Nationally, it's harder to accept Bitcoin because of volatility and even a nation accept it, it won't make that nation richer. Many things in society must be changed by many sectors and initiatives. Only Bitcoin can not solve all those things, never can do that.

People from these countries can benefit holding bitcoin and overcome the prevailing inflation. As a country it Is really tough to manage the inflation through bitcoin. Just think of a situation, country holding good volume of bitcoin as reserve and the country is facing worst economic situation and inflation at its high. What can the reserve bitcoin do, it'll be a small percentage to the entire economy. In other way the same can make the situation even worse, if the bitcoin market is found at its low when the country is in need of the reserve to be used.

Name one!


Name a second one!

We're still stuck on having this kind of topics and people really don't realize how complicated the situation is and why a country facing inflation and devaluation can't find refuge in Bitcoin!

There are two situations:
- the individual, he uses his money he buys Bitcoin he has now put a bit of his wealth in safety against inflation and devaluation
- the country, far more complicated as poor country that face inflation also faces devaluation of their currency. Buying bitcoin at a large scale won't solve the problem it will actually make it worse!!!
Why? Simple, the Weimar Republic!
The country would have to spend its own currency on buying hard currency in this case Bitcoin, but nobody wants crap coins like Argentinian pesos or Russian rubles or iranian rials, so by them trying to buy Bitcoin they devaluate furthermore their crappy curency, so ending worse and worse and making inflation also worse.

Bitcoin won't save a country, gold didn't save countries in economic peril in thousands of years of gold standard, so neither will a bunch of code that wasn't really designed for that.

Now if you don't believe the theory how about this:

Over 50% of Turkey’s Population Invests In Crypto
https://beincrypto.com/turkey-crypto-adoption-bitcoin-dominates/
vs

You have half of the population investing in crypto and you still have one of the highest inflation in the world, so how exactly did buying crypto help the country?

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.

It's really risky for third world countries to hedge against inflation through Bitcoin, it's better to invest in gold where the volatility is less than Bitcoin.

Bitcoin is really good to hedge against inflation when we're talk about individuals people who've make some good amount of money. Trading isn't easy, better to increase your salary rather than think you will make side income through trading.

I guess it's more on those people who are unbank, and using bitcoin to make transactions, either as a micro payment scheme as it should be. Or like in the last 5-6 years or so, specially after the bull run of 2017, many people thinks that bitcoin is a great asset to invest and it really us, but I don't think that it will just help those 3rd world countries to counter inflation in just a snap of a finger. Maybe some of their population who knows this, but for the government or the whole nation itself? I don't think that bitcoin will be the solution. The government will still have to put a program to get our of their financial issues, and not just rely solely on bitcoin.

"Countries" can not do that, individuals may.
On bigger scales bitcoin can not help much both because it still has a small market and also its price is too volatile. For example Turkey as a country with huge inflation (80%+) and a negative foreign reserve that is in tens of billions of dollars needs to print a billion dollar a day these days to cover the expenses. Nobody can make that much profit from bitcoin to help do that!

This point is highly debated this is because there is no fact to prove that Bitcoin has led to the economic advancement of any country. El Salvador is still at the infant stage of its Bitcoin investment so we cannot conclude that Bitcoin has contributed to the growth of its economy. However there have been reports that making Bitcoin a legal tender has helped the nation to gain from tourism.

Bitcoin can assist a nation in engaging in unrestricted international trade. The country can also save money from transaction fees and expenses incurred from sourcing for dollars. It can add to the financial status of individuals when they trade or hodl Bitcoin. Citizens can use it as a hedge against inflation. However, some citizens in developing nations are not taking advantage of these opportunities due to poverty and infrastructural deficits.

Bitcoin is mostly associated to the dollar, if the price of bitcoin increases, you don't look at it in your local currency because you immediately look at it's value in dollar and local currency is mostly pegged to dollar and it's the likely currency that you want to have if you want to grow what you own in local currency so I think in a way, bitcoin is a hedge to inflation although it's not a good idea to use it when you're trying to solve inflation on a nation scale, pretty sure that only few people are going to benefit from doing that thing so steer clear.

In regards to how bitcoin can solve inflation in a third-world country, I think that bitcoin wouldn't make any difference or significant change to that problem because most third-world country that's experiencing high and uncontrollable inflation are countries that have incompetent leaders and officials, if you root out corruption and place competent and smart people on the important seats in the government, you can easily see changes but given that not a lot of people has done this in these countries, I am not entirely that purging the corruption might be the solution.

People use bitcoin as a tool to counter inflation all over the world not just from India and Africa. I don't think most people are really using Bitcoin to make any change in their economic level but many individuals are taking this opportunity especially where the fiat value is highly unstable.

What you are proposing is nothing but basic knowledge about investment so anyone who understands that the value of fiat depreciates due to inflation and has money to invest can make money usually middle class may have the knowledge but won't have money to invest which is not the same with bitcoin because here people can invest even very small amount every month so over the period of few years the growth and returns will be too big.

Is Bitcoin currently being used more for transactions than speculation? I don't think so. To date, there are still many speculators who are primarily interested in capitalizing on Bitcoin's inherent volatility. This fluctuation in price is eagerly anticipated to yield profits for those who invest in Bitcoin.

Nevertheless, I still come across its primary function as a means of payment. Not in abundance, but it serves as a simpler alternative to traditional bank payments.

I disagree with this, how csn you include other cryptocurrencies together with bitcoin when what the people really want is bitcoin, how can you as well compare bitcoin with other cryptocurrencies when bitcoin is the only recognized digital currency in cryptocurrency, lastly why should you equate bitcoin with other cryptocurrencies that constitute shitcoins that have scammed other people before, we only recognized one digital currency, which is bitcoin.


There are many opportunities that comes with bitcoin adoption, we can't mention all but those who are after learning and adopting bitcoin knows the relevance it gives through it adoption, since the target with bitcoin is to give the people privacy and financial control in the way they handles their personal lives and the economy, which the youth are tge major targets.

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.

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.

Are you saying that because in those countries people usually have a lot of money to invest?


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.

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.

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.


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

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.