Topic: Interest Rate, Inflation, Debt vs Bitcoin in US (Read 114 times)

First, investment is possible in any country, and it will even earn more for those troubled countries if the investment is external like Bitcoin. This means more money when they eventually convert it to their local currency.

But you have to know that only God can tell what will exactly happen in the 10+ years you referenced, we can only speculate or assume. And based on my trading experience, experts can only be making regular annual speculations with their analysis, all the rest are assumptions as the longer it is farther, the more difficult it will be to ascertain. Bitcoin is not an exception, you don't know what will happen in the exact year the person would be needing the money.

The fiat is not totally useless as well, for example, in my country, those who had their USD in the past 10 years should be gaining about x6.5 of their money now. Is that not also an investment? Now, my point is that you can utilize fait and Bitcoin at their useful times and dispose of them at their troubled time. For those who bought Bitcoin in November 2021 in USD for a plan to sell in November 2022 will not be happy because they will lose in multiples. While those who sold their Bitcoin and bought it at the same earlier specified time will gain and would have the power to buy multiples of BTC with the same initial capital.

This is wisdom in investment, Bitcoin and fiat can make profits for you when you adjust the time you buy and sell them, not believing you can buy just Bitcoin alone and keep it for too long. What if the unforeseen now happened?

I know that currently America is being squeezed by various problems that complicate their economy. However, inflation there seems to be gradually decreasing, which means that the strategy of raising bank interest rates there has been quite successful. But in the news I also read that America is prone to a recession if we don't stop raising interest rates. but I'm not from that country so I don't know what's really going on in the economic life of the people in that country. because sometimes the media is always exaggerated.

But regarding the adoption of bitcoin, I don't think it's a solution for a big country like America. Conditions in America and El Salvador are very clearly different. So the solution for El Salvador will certainly not be effective if applied to America. Because there is a clear comparison or difference between the two. El salvador currently does not have their native state currency used in everyday life. even though they used to have their own currency but then high inflation has made the country have to lose the value of its own currency until they finally adopted the US dollar as the currency they use. But this is certainly detrimental to them because the dollar currency policy is not in their control. so that even the taxes and such became burdensome to them. So, this is where Nayib bukele began to adopt bitcoin as an alternative way for payments in that country. so that they can slowly be released from the domination of the dollar which has indeed been integrated into transactions in their society. And the adoption of bitcoin in El Salvador is actually like a tool to attract the outside world to pay more attention to El Salvador and it is effective because after the adoption the tourism sector and the number of visitors from abroad to the country have increased a lot and of course this has helped the economy in that country because it has increased the country's income .

and then various other policies are taken in the country to attract investors to come to the country.

The point is that the steps taken by El Salvador are indeed in the context of rebuilding the country in terms of the economy and technology so that it is more advanced. But America doesn't really need steps like those taken by El Salvador. It's just that America has to be more friendly to crypto and bitcoin if you don't want many big companies to start avoiding them because of this unfriendliness. And America also just needs to be less ambitious in raising interest rates so they can avoid a recession.

I think that's possible, not easy but "possible." Think about it this way, if you keep investing %10 of your salary into bitcoin for 10+ years, I think you will reach to a retirement profit no matter where you live. Unless that's Venezuela, Zimbabwe or Argentina level of poverty.

Most people living in the west for example could end up getting a good return on their investment and they could retire because bitcoin could go up enough during that period to make you rich. I know that it is not easy, there are very few people who would be able to do it, I am trying my best and even I fail, and that means we will not see plenty of people doing this, but that doesn't mean that it is not possible, I think it is totally possible.

Bitcoin is not really the solution for those problem. Ideally it would only work if the whole world uses a single currency which is bitcoin and thus we can avoid all these inflation stuff but technically its not possible when there are still other currency being used. As for El Salvador, I believe they are not 100% using bitcoin yet as of now


I dont think there is a significant effect yet for those countries

So your point here is to give Bitcoin a chance to change things for the better? let me explain, the economy is more complex than it seems, there are many things to consider, and Bitcoin is not the answer to that - even its implementation in the economy can only be used as an investment and payment asset, there is no way it will be used as legal tender in international transactions whose value can reach trillions of dollars. I personally really like Bitcoin and am quite militant for it, but even so I still see that Bitcoin is not as perfect as it seems and it can't beat the current financial system, but it can complement it, and I'd love it if Bitcoin could stay that way so on.

It's true that United States utilizes most of its expenditures on national defense and as a result the economy isn't progressing very well these days. But, it's still United States and it's among the best countries in the world. People dream to move there to pursue their careers and live rest of their live in
that country. Many industries including Silicon Valley are known as the revolution makers belong to this country. In order to be strong in defense they have to spend good money on their defense systems and that might affect the life of the citizens who live there.


Bitcoin offers some really good futures that the fiat currencies do not offer. but you should also keep in mind that Bitcoin is highly volatile and that's a drawback if you use it in place of fiat. Although, using it alongside fiat is a better option. but most countries don't even allow using it legally. I know that  El Salvador has added it as a legal tender but still it's too early for a country like United States to do the same.

You should also keep in mind that Bitcoin can not make an economy financially stable and that wasn't the purpose behind its creation. It's just a digital payment system and you can use it for transactions and purchasing of goods, etc. Inflation in an economy can only be controlled by policy-makers and democrats that hold the power of decision. A currency can not promise suppression of financial crisis or inflation.

From my understanding, it's all about Bitcoin being the solution for most of those problems. Yes, there goes El Salvador and Central African Republic that did adopted Bitcoin as a legal tender.

However, they can't skip these problems even if after the adoption has been done. These inflations, debts and other cause that will make a country's economy in a bad situation are typical factors that has to be dealt with.

But no doubt that a country that does adopt Bitcoin will have another source of their economy's breath and life.

Frankly, I did not understand the point you are trying to reach and its relationship to El Salvador, but it can be said that bitcoin is suitable as a currency for cheap payments between countries, countries that need to resort to the complexities of banking systems, and it is a good long-term investment that enables the individual to save the value of his money and multiply it, and it is not a parallel economy that the state can rely on instead of the system The current financial system based on petrodollars.

Therefore, if a country decides to adopt Bitcoin, it will not help it solve its economic crisis, but it will help individuals transfer money to their relatives around the world and improve their economic situation if the inflation crisis is the only economic crisis they have.

As long as you are a human being domiciled in a certain part of the world, there is no way you can absolutely avert your fair share in the economic turbulence of the country. Do you think Bitcoin can totally save you? Then you are joking, Bitcoin like any other asset has the raining and the drought moments, just like any country or their currencies facing their own trying times.

My advice to everyone is to be smart and economical to know the time to own much Bitcoin to hedge against economic troubles and also the time to hold on to a dependable fiat when the drought time comes to Bitcoin.

No economic and investment conditions can be perfect, let's continue to catch the fun as we get more speculative and smart daily rather than being sentimental.

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Bitcoin and US inflation analysis

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Is this what we should go for, where the government debts on interest rate is not encouraging and every payment made on this is almost equivalent to the national defense expenditures in US, there's no significant improvement than things getting worse than expected in the economy, isn't giving it an alternative to financial economy with bitcoin going to make some difference, El-Savador has tried doing such and things were getting better than worse ever, but US has been into this for a while revolving round thesame axis without tangible result on inflation and the financial economy advancement.