Topic: Is global adoption of Bitcoin possible post-Covid? - page 4. (Read 809 times)

post covid when we know going out is safer. no businesses will likely accept BTC especially if they dont know about it right now. all they'd rather want today are subsidies from government. an assurance that we and our kids dont die in hunger in the coming months.

there is no room for bitcoin adoption today. there are still payment method apart from cryptocurrency which governments will approved. bitcoin isn't on their list.

Thats a misconception actually. Bitcoin could be a currency a decade earlier when transaction time and fees were way way lower than they are now.
So fast forward one decade later Bitcoin will be even bulkier and heavier and won't be used as a currency for sure.
We should bet on some alts with possibility to handle this role, like ETH XMR TXZ and others, those are my personal favorites

Is the Global adaptation of Bitcoins post COVID-19 possible : Yes

Are the governments gonna let it go like this: No

The governments all around the world are feeling threatened by the power of Bitcoins and other cryptocurrencies . The politicians and the government are making not so good comments about the same . Even though they are not able to provide jobs for the community and cryptocurrencies are doing much better in this regards.

People are now understanding a fact *The financial and political system is too fragile to handle any ups and downs* , Therefore it is completely reasonable too look for alternatives.

Now the government knows what Bitcoins can do , until and unless they do want to handle another round of protests all around the world related to Cryptocurrencies they do need to leave it alone .

Most countries are a Democracy , that means people does have a say in what the government does , of they do not follow through it would just mean that the government is unfortunately not fit for functioning efficiently over the years , therefore if we demand sternly , I do think we would be able to make a change .

The only way we can see adoption of Bitcoins is by making sure we ask for it , educate people about it , learn more about the possibilities it can provide .

I don't really see how Bitcoin is supposed to be related to these. I mean, the said events by OP doesn't necessarily put Bitcoin above fiat nor does it put Bitcoin as something that should be used instead of fiat. It more like presents the problems that the government is currently facing with regards to the economy, specifically talking about the inflation problems that may occur if they keep printing out money after money. Besides, the problem stays the same, Bitcoin isn't that well known, maybe even >1% actually even see Bitcoin as a currency. The majority see Bitcoin as an investment of sorts, and as such, adoption post-Covid? Maybe even after another decade, adoption wouldn't be seen as possible.

Bitcoin was created during the aftermath of the 2008 recession and many assumed it was meant to correct the failures of the banking sector and salvage the economy, these however is not stated anywhere in the white paper. I don't think Bitcoin was created to prevent the collapse of global economies or to thrive in crisis. It's a trustless peer-to-peer payment option that gives the public an alternative. It may or may not be the solution to a global crisis.

Pros and cons;
• Bitcoin can be used to prevent inflation caused by debit financing due to its limited supply, but if more people held due to less spending there'll be more demand than supply and could lead to deflation.
• On the debt issue, Bitcoin can only be used to finance debts if it became globally accepted and it would function like any financial tool in this regards. It wouldn't prevent debtors from losing part of their territory if they can not repay their loans.
• It can be used as a hedge fund for those who want to escape the uncertainty of their local currency.

How Bitcoin would function in the future either as a staple currency or an alternative to fiat is yet to be seen and with time and adoption it would mature into the currency of the future

Global adoption is possible, no adoption is also possible. The future is full of uncertainty.
But why the narrative always, hyperinflation, crisis, doomsday, and then adoption, while it is not mutually exclusive? You can have global Bitcoin adoption without any of that stuff. And you can have no adoption after those events occur.

What I understand from the government decisions made into last stimulus package the was actually bought from the bank of reserves (respective country has different names) where they keep portion of money in safe deposits all the time. This is why it's called as reserve bank. They use this money in the same situation as we are in "the emergency". This helps push ahead the economic conditions of country and try to stabilise it.

However each country has limited supply and surely this cause the second problem here as stated in your post and that :- Inflation


Yes inflation in developing countries could be worst since government can not feed all the people, large population and illiteracy rate is always high in these country which leads to poor management as whole. Businesses are ran by wealthy and employment goes to educated. Again the question arise for illiterate population and they become unsecured in terms of buying even food, consumable and daily needs.


And when businesses suffer, people are suffered too. They have loans, EMI's for houses, cars and what not. They need to take more and there they trap.

Yes this is the case scenario here but it won't help adoption of bitcoin since this there is no relationship between the two at all.

All these three are real problems and unfortunately bitcoin is not the solution.

Now that, the whole world is in sort of an Economic Outrage due to Covid, It is worthwhile to note that every Government around the world has announced certain fiscal stimulus to boost up the economy once again. Every country has given aroud a 5-20% Fiscal package. Here is a summary of major countries:


So if we look at this metric we would realize that every country has increased liquidity in hands of people by this much percentage. Now where will this money come from? See considering that there won't be much gains in hands of people and less purchasing due to Covid chances are Tax collections which were expected to Increase Y-O-Y might even go down. Therefore countries would be having just two remaining options:

• 1. Deficit Financing: The most obvious answer for every country. For people who don't know what is deficit financing. It's basically printing of money by the Central bank who then gives it as a loan to the Government. But considering that economies around the world already have a deficit financing of average 3-5% Post covid deficit financing rates may go up to 10% therefore Governments might print a whole lot of money than what they expected almost double. This option is more suitable for Stable Economies.
• 2. Approaching the IMF: Now this is a less preferred option as it is an external borrowing which comes with a cost attached to it. Moreover IMF could also be a bit reluctant in relentless lending. But this is a viable option for developing Economies.

So if it's so easy then what's the problem ?
The problem is once again what it has already been. Creating money out of thin air devalues money and creates Inflation. Now most of the investors around the world are worried regarding the demon of "INFLATION" . Now it's a well known fact that inflation backed without by any Economic Growth could lead the country into a hyper inflationary stage. So, while the Countries are printing money relentlessly to fight economy distortion chances are few developing economies just run into Hyper-Inflation. We have seen such a case happening with Zimbabwe previously. Here is once again when Bitcoin comes into action. Here is how it looked for Zimbabwe :
 

Now this is not the only issue second issue is: DEBT TRAP. While most of the developing economy have been liberal in giving loans to individual and businesses. Now when businesses won't be able to pay back the loan. Countries are resorting to restructuring their debt by giving them more Debt. So this could create a situation of a debt Trap pretty similar to one we saw in 2008 only that was more specific to housing sector. Now this would be more devastating as Small businesses and unorganized sector is backbone for developing countries. Now once again people would realize how easily the Debt Trap can fall like a house of cards.

Interesting point to note here is China. China has been very aggressive in providing debt to various countries around the world and due to Covid most of the countries now might not be able to repay China. Moreover, External borrowing from some other Country like US would also not be possible due to stressed conditions in almost every country. Here is a map about how much debt does every country has to China :

Now here chances are that countries might have to lease out their territory to China as a repayment of these borrowings.

People around the world will realize that how easy it is for an economy to crash. I think these issues are already what Bitcoin is striving to fight with but in current times they seem to be more deadly. Bitcoin is providing a practical solution for it at-least as a stable alternative to Fiat.