Topic: Hyperinflation - Will it lead Countries to Adopt Bitcoin? - page 5. (Read 717 times)

Bitcoin alone will not be able to solve all of our economic problems in a country however it would be more of a domino effect. Once the investors of bitcoin get wealthy and they start actively participating in the economy this will result in an increase and positive activity of the overall economic scene.

This could then stimulate the economy because we know increased economic activity is a good thing so one thing will lead to another.

The macroeconomics differs from the individual economy, and therefore the solutions that are followed for individuals differ from the macroeconomic solutions.
Bitcoin will help individuals increase their wealth, not governments (this may happen as part of a comprehensive plan, but Bitcoin alone will not do this).

There are some countries in the world facing heavy inflation in their countries today but their governments will not think of Bitcoin as their alternative to their challenges, because they know that they have other sources to solve the challenges without adopting Bitcoin to help their citizens to embrace deflation.  Those countries that adopted Bitcoin in the past, they didn't adopted Bitcoin base on the information but they adopted base on, it will help the country to develop higher to create more opportunities for their citizens, which we have experienced such development from El Salvador and other countries that adopted Bitcoin. I think, Bitcoin can reduce inflation from any country that will adopt it, because there are a lot of opportunities that follow Bitcoin which the youths can use to improve their business by using Bitcoin as a payment and other things in their businesses.

I want to see how the economy will develop with hyperinflation on a global scale, and when that happens, will hidden methods such as real estate, gold, stocks, bitcoin,...can be seen as a solution.

And bitcoin is only a small part of the current economy, the fact that the scale is still at the same level as the value of a certain leading corporation collapsing will have an impact, of course there will be different ways to recover.

I don't think that the reason for bitcoin (crypto) adoption through negative situations, it's just that people realize its usefulness to be able to prioritize it more.

That's a good news for the Argentinians and of course hyperinflation would be a point of time when people doesn't need to be persuaded to adopt crypto currencies as it has long be emphasized where the crypto adoptors such as this platform has also been offering the speculation services.
Meanwhile.... The crypto adoptors in my own country has contributed effortlessly ranking top six globally and ranks first on the trading of p2p exchange. While investors and the crypto adoptors are expecting more support from our government to facilitate on adoption to a official legal tender of the lucrative innovation, our government are busy shutting down the CEXs from associating with our fiat and asking the CEXs to disclose the names of Crypto users to them so curious and desperate like the crypto adoptors did some shit stuffs affecting the national in a negative count.
But meanwhile this crypto invention has been offering sources by which the citizens facilitates of payments and also holds for investments that alternatively contributes to the economy in the society.
Honestly we the crypto adoptor Nigerians do envy those countries that their governments in one way or the other supports the crypto industry.

Wouldn't Bitcoin just protect the value of their own individual assets? Even if the government themselves started mining BTC, there's probably going to be a light impact, if not zero with regards to their economy. I don't think it'd ultimately help the country in improving their economical situation, that would stem from the governance itself, not the currency used.

Not to mention Bitcoin is a highly volatile asset. Yes, the country's inflation is high, but BTC's volatility may be a lot more damaging in terms of reducing their assets value in a shorter amount of time in some scenarios.

Hyperinflation will not force countries to adopt crypto, as they still have other focus and dealing with such situation I believe, crypto will be their last resort. The situation in Argentina is worst and seriously, they are dealing with this for years already and yet they still banned crypto and Bitcoin, though you can still adopt crypto as long as you know how to transact this without violating the terms and conditions of the exchanges, if you are in Argentina and sees the potential of crypto, better to adopt on your own.

The question is, can Bitcoin solve their economic problems and reduce inflation in the country? If yes, how?

If they start mining Bitcoin with gas available in large quantities to them, it might benefit them and the government might have more money to spend on the country and hopefully reduce inflation for the people, but it is not as easy as they might think it is.

When we talk about Bitcoin adoption by countries, they aren't going to make Bitcoin a legal tender for as long as their currency is alive and kicking as you said, they know they would lose a lot of control if they allow their people to use Bitcoin or other cryptocurrencies for their daily purchases or their financial activities, and governments and authorities can't let that happen, no matter what country it is.

It takes alot of consideration to switch to another currency. Basically when you announce that another currency as legal tender, you are basically pronouncing to the whole world that your own country currency are useless in this case the argentinian pesos. This could hurt the entire country economics and not to mention all other political stuff within the country as well so this is a pretty rough choice to take

As for El Salvador's case, they were using USD before bitcoin was announced as their next legal tender so there were not that much risk compared to Argentina that have their own specific legal tender

Adopting bitcoin as an alternative currency doesn't change anything In a country that is facing serious inflation challenge because the cause of inflation is when a government is unable to manage things pertaining to economy in the country. Bitcoin is always volatile and it is an asset that you can't always depend on, Bitcoin is just a store of value for longterm investors. Just imagine a country one's to adopt Bitcoin just because of inflation and the bear market begins to occur, it is only people who are ready to invest longterm that can cope with it adopting bitcoin can't solve anything about inflation, rather inflation can be eliminated if the  right things concerning economy are done.

Broken system? Hilarious that is.
It might be corrupt, but that are all human led systems

I want to believe that we already have seen enough with the impact of inflation on the economy and the next that should be trending is on how many countries will be using an alternative currency to evade the influence of inflation on the economy and experience growth, bitcoin has given everyone adopting for it use the privilege of running a financial system under a decentralized system whereby the government have no control over the entire way of operation on this, and now that the people have already seen and identified what they want with bitcoin, we all need the support of government together towards achieving the complement together in working against economy inflation.

I think there is no better option for countries that are greatly affected by inflation but to adopt what makes them earn money with so little investment and put their resources to use. The unused energy they have shall be used to make money just like the geothermal of El Salvador. If a country has falls that can produce energy, that might just be saving their economy too than adding more debt by printing.

Exactly. Whether inflation or not, countries exploring the Bitcoin technology is the best way to go. I am somehow close to how governments are run, with the little information I have, exploring new ideas and sampling them on the country is the best way to sustainable development in any country. Countries that thrive the most are countries that take their time to explore new ideas and advancements, whereas, countries that do not open doors to technological advancements, have a delayed or lack development as a whole.

Bitcoin is one monumental advancement to the world of financial technology and the earlier governments open their arms to it, the better. Aspects that will greatly benefit the government will especially be via investments

If they do it, they will not be the first country which officially mine Bitcoin nationwide and at governmental scale. I can remember Bhutan, El Salvador are one of countries which have governmental Bitcoin mining activities recent years.

El Salvador mines 474 Bitcoin using geothermal volcanic energy
Bhutan has been mining Bitcoin with hydropower since BTC price was $5,000

If their countries have problems with hyper inflation, it is consequence of long lasting improper and unhealthy economics policies over many years and they can not simply use Bitcoin as a rescuing mean for their economies or hyper-inflated fiat currencies. Bitcoin does not have such magic impact on any national economy and fiat currency.

They may adopt bitcoin like El Salvador but it won't solve any of their economic problems.
For example the case of Argentina that you used is the consequence of a crazy person being elected as the highest ranking official of the country. Just check the inflation charts as a clear indication.
Argentina had high inflation before him but it is around 40%. Then el Loco was elected and inflation jumped up to 133% in 2023 and to then to 249% in 2024. That Is Crazy...

Now back to El Salvador. The economy of this small country has been improving NOT because they adopted bitcoin but because they had a much better government that has been using their collective heads to improve the economy and solve the issues instead of creating new ones.

I also have to mention that bitcoin's volatility can hurt the country's economy even more, specially if we end up experiencing a long bear market after they adopt it while having severe economic issues.
Also Argentina currently has billions of dollars in budget deficit, mining bitcoin is not going to help that either.

On top of that, the crazy man is doing a lot more damage to crash the country's economy. He has also been doing things like cutting energy subsidies that worsens the inflation, damaging the job market, local production, etc.
And worst of all he is printing bonds and selling them, which is effectively increasing the national debt, increase inflation and dump the local currency even more! The worst of these effects will be seen in long term as the government that is already out of money has to print more money to pay the interest on those bonds...

That's just the tip of the iceberg. In comparison Bukele never did any crazy things like that in El Salvador. That is why the inflation rate in El Salvador has been declining and is currently at 0.77%.

The short answer to your question is NO. Bitcoin is a volatile financial asset and a store of value. It's like asking the question "Will the country adopt gold in order to replace a hyperinflated fiat national currency?" Of course not. You have to remind yourself about the Thomas Gresham's law that states "bad money always pushes good money out of circulation". It's better to spend worthless Argentinian pesos for goods and services, rather than spending BTC or gold. The Argentinian pesos might lose value tomorrow, while BTC and gold will most likely increase their value in the future.

I check on Wikipedia, Argentina's banks still ban banking transactions related to Bitcoin[/url], I hope Melei will allow banks to accept funds from Bitcoin and didn't use his power only for him i.e. he mine and own Bitcoin, but the citizen has a harder way to own Bitcoin.

"Adopting Bitcoin" isn't necessary must be accepted as legal tender, it only need to not get banned in anything.

Bitcoin is good as a store of value, but for daily transactions, it's not yet preferable.

They're sitting on a goldmine of Bitcoin potential, using their own gas to mine it, yet they're still clinging to the damn peso, a currency that's bleeding value by the day. It's like they're addicted to the familiar, even when it's killing them. But here's the thing, comfort zones don't last forever. Their banking system is holding on by a thread, and Bitcoin isn't going to wait for them to wake up

Look at El Salvador, look at President Bukele's balls-to-the-wall approach with Bitcoin. It's not just a national policy; it's a blueprint for other countries tired of the same old broken financial systems. This is about recognizing that the ground is shifting beneath our feet. We're not talking about hyperinflation as some abstract theory anymore; it's a pattern we're seeing play out in real-time

And don't even get me started on Maya Parbhoe in Suriname. She's got a vision, man, and she's using Bitcoin to stabilize her country's economy. This isn't just about making money; it's about using technology to rewrite the rules of the game

Argentina's government can mine Bitcoin if ever they want and it's not related to the hyperinflation that they're having because it is just another source or business that they're having.

And most of the countries that are into hyperinflation, they're using other currencies that they can accept. Like for Venezuela, they're accepting US dollars and people there are using bank transfers for every purchase they make.

So, going with Bitcoin as their alternative currency for payments, it's not impossible just as in other countries. They've got merchants that are accepting payments in Bitcoin.