Topic: How Will Investing Help the Economy of a Country - page 7. (Read 1334 times)

Yes, the right investment can affect the development or economic growth in a country.

One theory from Harrod Domar explains that investment activities are considered to be one of the important factors in 2 roles to have an impact on the economy.

The first is that investment has a positive relationship to state income. The easier the investment process in a country, the higher the state income will be.

Second, investment can also increase the production capacity of the economy by increasing the formation of the capital stock.
Because the formation of capital can be considered as an expenditure that can increase the demand for community needs.

When we talk about investment, it depends on what one is investing in that will determine if the investment will be a good or bad one. Crypto investment became one of the best reliable investments because it reduces the rate of unemployment to some countries who saw the light in it and adopted it as a means of payment. Investing in crypto will develop any country's economy because it will help to reduce the financial dependency of the citizens of a particular country.

I agree with you, because many developed countries in the world today their citizens done a great work that made them to be among the richest countries in the world. Some of the citizens invested a huge amount of capital on a particular project that accommodated a huge amount of people that is bringing income to the government account. That is why many countries are trying their possible best to make bitcoin legalized in their countries, so that their economy will grow higher for their citizens to feel the impact of decentralized currency in every areas of the countries.

Because it doesn't offer anything else other that the volcanic city mirage and because people know how unstable that region is, what happens if Buekele is out next year? It doesn't offer the assurance of continuity like Europe, and also it's not a rich country, manufacturing won't have any advantage, with finances it still lacks connections to other centers, Buekle had to first fix thousands of problems and then ask investors to come.
Malta, Gibraltar, and Singapore are different, they already have everything set in place, it was easy for them to tell bitcoiners to set up camp there.

If adopting bitcoin as legal tender would have solved everything and made everyone rich we would have seen a different world by now.


Poverty won't be reduced magically..
For that 15% in your case, somebody has to come up with the money to rise the price of bitcoin to a level where the 15% will be in a huge profit.

If we speak of a country alone, that has 10 000 bitcoins and there are no inflows or outflows of BTC from other countries, nothing will change internally, some wills ell to others from 2k to 10k to 100k, and the amount of money and wealth will still be the same. If you buy BTC at 20k you give someone 20k, you sell at a profit at 100k somebody gives you 100k from his wallet, in both scenarios the three of you have just like in the beginning, 1 BTC and $120k, nothing has changed.

I think what has happened in El Salvador shows this. Despite all the hype, it doesn't seem to have attracted much investment.

El Salvador seems to delay its ‘volcano bonds’ launch

It would have been another thing, I think, if the price had followed a different path, which means being at the mercy of the market's ups and downs.

Furthermore, the OP talks about "crypto", which makes it even worse, as there is a lot of garbage between them and a lot of pump and dump schemes.

Many things we can do to help the country's economy, of course the most common is investment in companies that use mass labor such as shoe production factory, garment, household appliances, agriculture and so on, when production increases it will automatically make work and distribution next income so that it can help the country economy.

You've already gave the answer all by yourself, how investing in the economy can help a country is a solution from the statement you first made that investing in cryptocurrency has opportunities which i believe this has help many circumstances in the economy therein, there's a need for a country to remain independent on other countries for economy survival, they have to derive a means to an alternative tuat could help boost and stabilize their system, this makes the adoption in bitcoin comes with unique difference on role played against inflation and economy uncertainties.

Investment in bitcoin? Tell me - do you imagine the prospects of bitcoin for 3 months? For 6-12 months? For 3-5 years? On 10 ? No offense - probably not. Most likely, you think, since not so long ago, someone managed to create capital for themselves on this, so you will succeed? Not ! More precisely, it is probable, but the probability tends to 0. Bitcoin, and indeed the whole cryptocurrency, is now a speculative market, managed by interested parties. Here is someone bought bitcoin at a price of 60k dollars? And what is he doing now? What is his income from investing in bitcoin? He has a direct loss on 1 bitcoin - 40k dollars. I don't think it's the best thing to do
In order to invest in HIGH-RISK assets, such as cryptocurrency, you need to study this market thoroughly, have access to insider information and much more. Then the probability of receiving income will be HIGHER, but far from 100%

Talking about the country's economy may be too broad. How do we narrow it down to a more specific angle for just a few microeconomics?

Take for example that there are so many different types of investments, when you take crypto you are talking about the high volatility market price risk of other investment assets. I think it depends on how observant people are in understanding cryptocurrency itself. Meanwhile, the development of cryptocurrency is dominated by a new generation of young people.

Generally, countries will not give complete freedom when it comes to crypto investments, as the entry and exit of fiat into crypto will not be monitored. Except creating a centralized exchange that is monitored by the government. Even if it is a policy that gives space to crypto assets. In fact, until now the government has not fully demonstrated this support. In certain countries, crypto is still not allowed.

Cryptos could be the main reason on why investing got popular now and as of now there are other digital wallets which offers investment but they can not beat the interest offered here in cryptos.

The only downside is that the risk is also high but that is normal and just like they say, high risk means high reward. Don't say that cryptos are reliable, that's wrong. They aren't actually since they are not stable but they are highly volatile but it's true that many of them are trusted. I don't know if how can investing help the economy of country but I think a tax can right? If yes then a country can adopt/regulate a crypto and then impose tax on it.

Investing will help the economy of a country by providing a way for businesses to grow and expand. When businesses grow and expand, they hire more workers, which leads to an increase in the amount of money that is flowing through the economy. Additionally, when businesses grow and expand, they are able to produce more goods and services, which leads to an increase in the amount of wealth that is available in the country.
This is why a good investment will always give you a positive return  
And this is why Crypto is considered a big ponzi by few economists. Most of the investment in crypto stays stagnant, with the sole purpose of inflating its value.

The problem with a country investing in Bitcoin is that if it's doing very well and can afford a good investment, it doesn't really matter much, while if it's doing very poorly, it can only afford a small investment, which isn't going to be of high impact because it's pretty small on the scale of a country's budget. So conditions have to be just right to truly make a difference with an investment like this, and while it's relatively safe if it's for a few years, it's not safe if the investment has to be reassessed, say, every year because of annual budget planning.

Honestly, I do not understand what you mean as you said above.

But i try to understand about investment, economy, country and individual.
Investment is if interpreted broadly, generally what people often mention is placing one of the assets, capital, money and so on, the hope that someday it can generate profits in a certain period of time, long or short term.

Meaning: For example, if a certain country has a population of 1000 million people, with a poverty rate of 40%, if all of them know Crypto as a short and long term investment asset and they invest from 40% poverty, at least it will be reduced by at least 25% as long as they know the investment, automatically the country will help the economy in terms of taxes, because their people generally do transactions with crypto.

If you want to know in more detail the percentage, number of crypto owners, across countries, you can look here: Cryptocurrency
across the world, the article will help you to understand about your question.

Bottom line: the greater the number of crypto users and transactions in the country by its people, the greater the state revenue from crypto taxes.

Money flow is basically what decides how good a country can do, because more money flow means more spending in the economy which would ultimately mean that income is being generated in the economy, basically the circle would move like you start with investing, lending in the economy will increase, similarly as the lending will increase the business will invest more into their business and people will spend more in the economy using credit. So this is why investing is helpful for the economy.

Yes, in essence it is like that, that any investment as long as it really makes a profit and can make life better, of course it needs to be developed,
especially when it comes to crypto investing where it takes a lot to learn and is very complex,
The highly volatile crypto market is also a challenge in itself

I do not think that things go as well as you hope when people invest into a company's stock. The way you explain it "should be" what the whole stock market is all about, but unfortunately that is not the case anymore. There are companies who fire tens of thousands of people to show bigger profits via less expense. So that means the stock market turned into something that is pure money making machine, if you are not making more and more profit to the shareholder, they will sell you and then destroy you.

There were a lot of companies that didn't do too bad, sure not wealthy but doing alright, but didn't provide bigger and bigger profits hence why people shorted them and destroyed them.

Investing in the economy means there will be more jobs in your country and more people will be able to improve their lives. As for investing in cryptocurrency, I see it as a private investment, that is, everyone can invest and receive income, the same applies to entrepreneurs who can also create new places to receive income by investing in cryptocurrency. In simple words, any investment that brings the opportunity to improve your life and the lives of others around the world is a very good thing and needs to be developed.

Investing in crypto might provide investors huge return however it really does depends on the crypto project that you're investing on if they'll be able to provide assistance and growth to the economy of a country. Most of the crypto investment out has a few usecase that will help people.

But when it comes to investment on stocks of a company, just as you've said, the more investment, the more capital the conpany has. This also means, it'll provide more jobs and opportunities to the people of once's country.

Think simple, not complicated, and then decide what you will invest in. If all you have is tapioca, gooseberries, and hunger. Not every country has the same economic potential or develops according to some economic standards. So don't just think about the profit that you are enjoying because behind it there will also be people who are losing. Everything can't be stable in that life is almost a rule. So financial investment is only suitable for those places where there is enough ability from knowledge and assets to get profits. Don't look at it and think "lucky" when it is a big model and can't be thought of according to it personally.

Sure, when you invest in a company's stock, you're helping them raise capital for their business, expanding the market, and eventually helping thousands of people get jobs and ultimately full pay taxes to the government. No matter what sector you invest in, if it's legal and regulated by the government, it's you contributing to the economy.  The people are rich, the country is strong, a country cannot develop and become rich when its citizens are poor people.