Topic: Hyperinflation - Will it lead Countries to Adopt Bitcoin? (Read 732 times)

Hyperinflation is rare, its hundreds of percent inflation per month or similar.  What that obviously equates to is instability and the desire to hold anything at all besides that cash which is rapidly losing value.   Just normal inflation is bad enough but hyper is fairly rare occurrence apparently and usually leads quite quickly to that currency not being usable.

So Bitcoin as an answer I would be forced to say yes, under the rule its a valid alternative available to all so of course its going to be used.  I always want to argue BTC should keep trying to get as usable, safe and regular as it can be for this future demand from a main population.   Some people dont like technology at all, they dont want the hassle and so BTC does need to be more simplified for application to all not just those who would choose it or like learning new things etc.

The reason I mostly answer no to OP is stability, also unfamiliarity.   Theres a great many currencies across the world, some are massively backed with assets.   Theres alot of competition besides BTC and countries are most likely to take the currency of their largest trading partner is the logical answer imo.

I don't think that's the actual case. While that's true that not all of their citizens are going to be friendly with the adoption of Bitcoin if they are finding it as an additional source, they can do it as long as it's gonna be legal on their end.

As for inflation, it cannot be skipped by any country but if it comes to the point of reaching hyperinflation. As I've said in the other reply of mine here, there's really something wrong with the current or past regime as to why it resulted to that crazy inflation.

Gaining votes from the people is what the present democratic governments objective is. They will not do something to make the people who voted for them suffer, they spend money gifting such voters with different types of articles eventually causing the damage to incoming taxation and the burden is felt by the people living in that country.

However governments are often not going to face the topic of bitcoin, because it is something that is doing to create an uproar from common nocoiners folk if touched upon. This may change in future but it will not happen now.

Such inflation is affecting many country right now, but BTC and crypto still remain banned in their countries and the government don't want to give decentralized currency a try if it will boost their economy or not, but they just feel it will worst their economy more which is not true.

But the youths that know BTC business very well, know that if the government can adopt BTC in this hyperinflation in the country, it will surely solve so many things from the  people and government economy, and it will make the government to change their minds to make BTC legal tender in the country.

I know that, a time will come that will open the eyes of the leaders to save their economy not to collapse by adopting BTC in the country to delete the hyperinflation.

They will look to do anything, any sort of damage control, that saves their monetary system. Failing that, they will do political stunts like the one you just mentioned to try to keep the fact that their monetary system is failing as a secret to their population. For another example, look at Turkey. They have been experiencing some really bad hyperinflation but they do not acknowledge Bitcoin at all, in fact going as far to ban bitcoin payments in the country.

Politicians are slightly different from ordinary people when it comes to dealing with anything, including dealing with inflation. Because ordinary people will definitely feel more suffering when they have to face problems such as inflation or other things in their already deprived lives, while politicians and government officials only feel a little suffering which can be overcome directly by themselves without feeling any more burden. Although their general task is to be able to ensure that the country does not suffer due to inflation.

Turkey is still on its highest, more 65% of inflation iirc. they were looking for ways to make money so they charge tarriff of about 40% on Chinese EVs as well. couldn't also see this country adopting BTC but seeing countries like them are just following the what EU is doing so it will not matter for them even when they see crypto been adopted elsewhere.

if EU and US is regulating crypto, its still considered adoption as it means its  legal to use.

What is considered hyperinflation is when it exceeds 50%. There have been many countries who had undergone hyperinflation but quite a few have already recovered meanwhile one country remains to have the worst inflation for probably more than a decade or so by now,

Venezuela has an inflation rate of 283%, followed by Lebanon with 212% and Argentina in third place with 161%. The next country on the list is below 100% even if not below 50%.
Inflation not exceeding 2% is actually quite normal and, in some cases, even encouraged.

Very few countries in the world ever have or likely ever will receive hyper inflation. The current period that most of the countries in the world are facing is just low to medium inflation, that has identifiable sources - the war in Ukraine, the Suez canal houthi issue, the remnants of supply chain issues in covid and the peaking of oil prices during middle east conflicts. These all increase food prices and oil goes into so many days to day items, not just the obvious fuel that most people might associate to it. Hyper inflation is a unique scenario however, which is often caused by a complete lack of faith in the government that is often wielding direct control over monetary policy and badly at that.

most people don't get that politicians don't suffer the same ills their people feel.
Inflation for a state is great, less value when paying wages. 

Well, the countries affected by inflation will prefer the USD since its value will still be higher if they convert USD to their local currency. Using the USD will still make sense after all they will rely on the most traded currency. It may not be the cash but digital USD since we are going digital anyway. but it is also easier to adopt Bitcoin when it's all digital.

If Bitcoin is made legal tender, it will be better. There might be possibilities that some countries may come to reconsider it. there are few countries that have already made it legal tender.

Countries like EL-salvador who was the first country in the world to make it legal tender in June 2021, follow by the central African republic in April 2022.
Most developed countries that claim to be the super power in the world are still using Bitcoin for buying and selling. Example of these countries are USA, UK CANADA. infact, USA government is known to have held the largest Bitcoin reserve at the time of writing. with over 210 000 Bitcoin. But still, there are other countries that have even banned it's uses completely CHINA and SAUDI ARABIA are included in these countries that have made the use of Bitcoin illegal.

Bitcoin is still at it's infant stage, it has not matured fully. So it may sound too early to say something deep about countries adopting it or not, but there are great possibilities that Bitcoin might be reconsidered as a legal tender but the main problem is, it has no uniform international laws that regulates it. But despite with that, since there are using it in most of the countries for buying and selling, and their transaction is successfully moving on, then if they really care about the well being of their citizens, the United Nations body will just come together and discuss it.

But if a person stays and he/she remains unproductive, and merely a burden to society, then wouldn't it be better for him/her to take the opportunity to work in another country and be incentivized for it? It would stupid to think that it would be the wrong decision, no? Plus of those people could send foreign currencies that could help with their counties' foreign reserves, then absolutely why not?

I agree with you . Dollar look like safe but USA banks prints 20 percent Dollars of the circulated dollars , the price of dollar will go down and people will prefer crypto currency because the future of cryptocurrency is very bright and after the 20 to 30 years , cryptocurrency will be use to pay bills,to pay for accessories and to get the food for living. In that era , cryptocurrency has been used as a investment and only intelligent people invested in this because to invest in this ,you should have knowledge how to buy the Bitcoin and how to convert the Bitcoin into dollars and how to convert into your own currency. In future,next generation will be more advance than us and they will use cryptocurrency as currency and they will buy living things by Bitcoin.

Global currency reset seems crazy, but it's not as easy as everyone buying USD. Although the dollar has been dominant for a time, it is not invincible. Due to money printing craziness, hyperinflation may soon hit the dollar

Salvador adopting Bitcoin? Quite bold, guy. They realize a decentralized currency like Bitcoin might revolutionize the world in a debt-ridden planet. Bitcoin is a mindfuck for some, but the potential is immense. Not only is the $30 giveaway important, but it also gives people power with a currency that bigwigs can't change. The USD may appear safe, but don't overlook Bitcoin. Long game, but it could be the biggest financial shakeup ever

I believe very few countries will adopt Bitcoin as legal tender, even if there is hyper inflation.

Let's take for example the Naira which is the currency of Nigeria, which has started to experience hyper inflation over the past year. The citizens of Nigeria have been flocking to Bitcoin as an alternative to hold their wealth, but the Nigerian government has cracked down on this. If anything, losing control of their own monetary system will lead them to do crazy things, rather than adopt cryptocurrencies. For example, they have held a Binance executive as a scapegoat in a prison cell for over 3 months blaming him (despite being an innocent middle manager), because the Naira has been devalued by Nigerian citizens using Binance to exchange their currency.

More details:
(1) https://www.nytimes.com/2024/05/07/technology/binance-nigeria-tigran-gambaryan.html
(2) https://www.binance.com/en/blog/leadership/from-richard-teng-binance-ceo-tigran-gambaryan-is-innocent-and-must-be-released-3634612934164622056?lang=en

If all countries get into a state of hyperinflation, they will be forced to abandon their currencies as well. But most probably they will take the USD as their currency as it is safer which is why El Salvador also took USD as their currency while also declaring BTC as legal tender.

This has to take place together, it's easier for people to adopt when USD is their base currency. Adopting BTC will be the challenging part that's why their government giveaway $30 in BTC to those who install their Bitcoin wallet. I think he was hoping that it could kickstart the adoption.

Hyperinflation is a severe form of inflation that causes a country's currency to rapidly lose value. Bitcoin can be attractive during hyperinflation because it has a limited supply & is not subject to government control. Adopting Bitcoin as a national currency requires careful consideration of regulations, tech & public acceptance. We’ve already seen El Salvador doing well after adopting Bitcoin as legal tender & buying themselves, more will inevitably follow.

While understanding you clearly, bitcoin is actually a currency in a digital form but risky to be hold as the fiats maybe implied due to cryptos volatility.
It's more considered of asset holding than the hope of currency with the mode of having it for exchange of commodities.
Instead, convert the value of your desired bitcoin to fiat due to stability probably that will take you in a short or long run while you've the rest on hold for assets.

The issue with bitcoin is that it is very unstable to be used as a currency. Remember Nov 2021, we peaked at around $70K and 1 year later we bottomed at $16K. These types of moves don’t make it an ideal asset to be used as a currency hedge against inflation.

You actually would be better off just using the crypto stablecoins because those are always pegged to $1. However you might as well just use US dollar fiat instead.

They need to overall their entire government and fix their currency. Most likely the currency will be replaced by a new currency and hopefully the new one will holds its value.