is it possible to invest in bitcoin to build a country whose economy is down? - page 6.

QueenVera

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Quote from: Kaliandra on January 21, 2023, 08:20:04 AM

I want to ask everyone, can adopting bitcoin help a country's economy? especially countries that are experiencing bankruptcy, for example, as experienced by our brothers in the country of Sri Lanka.

Yes but the governor doesn't have to force everybody in the country to buy Bitcoin because ever though they do that, it'll not add to the countries economically growth instead only enrich those individuals that bought and humans been very greedy might run away with all the money they made from the investment.
What the government can do is to invest the countries money into buying of Bitcoin or mining of Bitcoin. Countries like El Salvador are using this strategy of DCA their investment into bitcoin and in couple years time they would had made so much profits that they can invest those profits into other things that'll help revive the economy of their country.
I think this is the best way a country can benefit from Bitcoin helping their economy more effectively through investment in Bitcoin since adoption isn't at its highest peak to rely on taxing companies that carryout operation from your country.

Phyna4

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It's a no for me because of the volatile nature of btc. Bitcoin investment should be an individual thing.

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Quote from: nullama on January 23, 2023, 12:22:38 AM

I think partly why most countries don't make it legal tender is because the governments would lose on all that tax.

Bitcoin legal tender means bitcoin will be the currency of that country, once bitcoin is the currency, their old currency will no longer be used. I think that's why the government will never accept it as legal tender. Only countries whose currencies are losing value will accept bitcoin as legal tender.

aylabadia05

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Quote from: Kaliandra on January 21, 2023, 08:20:04 AM

what is my understanding like that, I ask for your opinion from all of you?

The economic recovery of a country can be done in many ways, one of which is in the investment sector and the types of investment are diverse. Sometimes like El Salvador, which legalised Bitcoin as legal tender with the aim of advancing the Central American country's economy, targeting foreign investors into their territory.

I can answer if for organisations like the government maybe Bitcoin can't help, but to make individual economic changes maybe it can.
In my opinion, the Government can emulate the system of blockchain technology to facilitate their efforts to restore the economy.

davis196

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The short answer to your question is NO!
Countries like El Salvador and the Central African republic had accepted Bitcoin as a legal tender. Are they facing massive economic growth?
Nope! Not even close. Small and underdeveloped countries need massive investments in their infrastructure and education systems. They don't necessarily need a cryptocurrency. Many people don't even have computers and electricity. How are they going to use Bitcoin or altcoins?
Bitcoin isn't even a stable currency. It's highly volatile, which is bad for a country, that doesn't have a strong economy.

nullama

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Quote from: n0ne on January 22, 2023, 05:38:59 PM

With the legalised usage countries can tax the usage in the right way. This can bring revenue and a small contribution to the economy through cryptocurrency usage can be obtained. This doesn't mean they were able to build the economy through bitcoin. Bitcoin is just the currency as Dollar and Euro, and it have got the technology backing. There is always misunderstanding about bitcoin as the way to eliminate poverty, unemployment and so on. Only through its usage one can know what it is all about than just making assumptions.

Legal tender would mean no capital gains tax.

If you man Bitcoin being legal to use, well, most countries in the world are like that already.

I think partly why most countries don't make it legal tender is because the governments would lose on all that tax.

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Quote from: TribalBob on January 22, 2023, 07:03:20 AM

Quote from: Kaliandra on January 21, 2023, 08:20:04 AM

I want to ask everyone, can adopting bitcoin help a country's economy? especially countries that are experiencing bankruptcy, for example, as experienced by our brothers in the country of Sri Lanka.

I think investing in bitcoin for a country that is experiencing difficulties is not a good idea, because as we know the value of bitcoin does not always increase, it tends to change. and as we know the country requires quite large operational costs, so btc can't support it all (in my opinion).
btc is only suitable for individual investments not wholesales for example countries

They can still invest in bitcoin but don't think bitcoin will get them out of trouble or will improve the economy. As many people have said above, bitcoin is just an investment tool like other assets so the government can invest, but it needs to be appropriately calculated to be able to bring them a profit. El Salvador is an example, their investment is not yet profitable, but they know how to take advantage of bitcoin's reputation to promote other things in their country, such as tourism, calling for investment from abroad. That's also a way, not just looking for a return on investment.

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With the legalised usage countries can tax the usage in the right way. This can bring revenue and a small contribution to the economy through cryptocurrency usage can be obtained. This doesn't mean they were able to build the economy through bitcoin. Bitcoin is just the currency as Dollar and Euro, and it have got the technology backing. There is always misunderstanding about bitcoin as the way to eliminate poverty, unemployment and so on. Only through its usage one can know what it is all about than just making assumptions.

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Quote from: Kakmakr on January 22, 2023, 01:21:11 PM

Well, the adoption of Bitcoin by a country.. cannot change the way that a country are run.... it can add transparency to the way that the tax money are spend. (Leaving a bread crumb trail on the Blockchain for all the transactions that are done with the money)

Bitcoin cannot change the regulation of a country but a country that adopts bitcoin can change its regulation for Bitcoin to be used or to be implemented in their financial system.

Quote from: Kakmakr on January 22, 2023, 01:21:11 PM

The citizens of that country can also benefit from this, because they can protect the value of their wealth .. by buying bitcoins and not leaving it in their local Fiat currency that are failing. (Hyper inflation kills the buying power of their local currency)

Also, citizens who are unbanked can also take advantage of the frictionless, borderless feature of Bitcoin where there is no need for banks to process transactions internationally.

nullama

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Quote from: Kakmakr on January 22, 2023, 01:21:11 PM

Well, the adoption of Bitcoin by a country.. cannot change the way that a country are run.... it can add transparency to the way that the tax money are spend. (Leaving a bread crumb trail on the Blockchain for all the transactions that are done with the money)

The citizens of that country can also benefit from this, because they can protect the value of their wealth .. by buying bitcoins and not leaving it in their local Fiat currency that are failing. (Hyper inflation kills the buying power of their local currency)

The main thing about having legal tender is that the recipient of the transaction has to accept the currency, in this case Bitcoin, for the debt they have.

So, even the country has to accept Bitcoin to pay taxes, debts, etc.

Note that in a country where Bitcoin is not legal tender you can still freely transact with Bitcoin as long as the two participants are willing to do so. There's no legal barrier to buy and sell goods and services with Bitcoin.

Kakmakr

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Well, the adoption of Bitcoin by a country.. cannot change the way that a country are run.... it can add transparency to the way that the tax money are spend. (Leaving a bread crumb trail on the Blockchain for all the transactions that are done with the money)

The citizens of that country can also benefit from this, because they can protect the value of their wealth .. by buying bitcoins and not leaving it in their local Fiat currency that are failing. (Hyper inflation kills the buying power of their local currency)

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Quote from: Kaliandra on January 21, 2023, 05:55:45 PM

Quote from: Oceat on January 21, 2023, 05:37:36 PM

~

I don't mean to build a country by relying only on bitcoins, because a country if there is still a lot of corruption and others will certainly not progress, but if people invest it will at least be helped rather than not investing at all, and in my country I often see people whose economy is helped by investing in bitcoin? and I also want to ask, have you ever seen someone's economy being helped because of bitcoin?
and in my opinion, if there are people who are economically helped by investing in bitcoin, I think that is the first step in the progress of a country, starting from small things first?

I don't see any connection of how a country's economy would move further because of investing in Bitcoin since a country isn't relying on Bitcoin only. There are different factors that can make a country's economy evolve and one of that is by using the fiat money. Perhaps by taxing people from every transaction they made on exchanges.

Anyway, what do you think of Bitcoin ATM in some country? Isn't that helping them/their economy?

I can't tell exactly what do you mean, perhaps make an ads about of Bitcoin in the TV or social media in your country but I doubt almost everyone would listen to you but I'm sure there are some people that somehow will agree with you.

Bitcoin is just a freedom of using our own hard earned money without a third-party interfering all of your transaction. But it can also be an asset that you can sell.

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Quote from: Kaliandra on January 21, 2023, 08:20:04 AM

I want to ask everyone, can adopting bitcoin help a country's economy? especially countries that are experiencing bankruptcy, for example, as experienced by our brothers in the country of Sri Lanka.

I think investing in bitcoin for a country that is experiencing difficulties is not a good idea, because as we know the value of bitcoin does not always increase, it tends to change. and as we know the country requires quite large operational costs, so btc can't support it all (in my opinion).
btc is only suitable for individual investments not wholesales for example countries

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Quote from: nullama on January 21, 2023, 09:09:15 PM

Quote from: Ayers on January 21, 2023, 09:02:26 PM

~snip~
The economy of a country depends on a lot of factors to develop, investing or depending on bitcoin will be very difficult to improve the economy of a nation. For individuals, bitcoin can help, but you also need to remember that investing is not always profitable, there will be risks, so it depends on each person's mindset that there can be a profit or not. Bitcoin is an investment tool like other investments, whether your economy improves or not is up to you to decide, not bitcoin.

Exactly right. At the end of the day Bitcoin is just money, a great type of money, but money nonetheless.

You need to actually have a healthy economy to grow a country, with different people doing different things.

Bitcoin can help these individuals to provide their goods and services to more people, but they have to actually generate those services themselves.

Also Bitcoin helps to keep value of your savings over the long term, compared to fiat.

Economy is just a broad aspect. Perhaps 100 people in a certain country are known to be the richest in the world, but they are in a third world country. Nit because they are rich, they would be able to carry a country's economy on their shoulders. Which is in line with individualism and generalism. Bitcoin indeed helps an individual financially by means of profit. But that won't lift an economy which is being pulled down by different industries. As you've mentioned as well, profit is not certain in this industry or consistent, which is also another factor to consider. So the answer to this topic's question is definitely no. If you're succeeding in this industry, you'd more likely move to other country.

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Quote from: Kaliandra on January 21, 2023, 08:20:04 AM

I want to ask everyone, can adopting bitcoin help a country's economy? especially countries that are experiencing bankruptcy, for example, as experienced by our brothers in the country of Sri Lanka.

To a certain extend any country could profit from investing in bitcoins, as long as the long term price trend is positive. The problem of course for a country in bankruptcy is that they don't have any money to buy bitcoins in the first place. They could try and print more of their fiat money and buy bitcoins, but nobody would be selling his bitcoins for the inflated fiat money. The bankruptcy comes from not meeting financial obligations that have been given in the past. Somehow Sri Lanka needs to work on restructuring their debt first and try to get their budget in order. Otherwise it will be hard to get foreign investors to help and rebuild the country. Switching to bitcoins as a form of payment could be helpful as well for Sri Lanka. As long as all the people have access to bitcoins it could be a good alternative for the people, but the government will probably not agree. Once switching to bitcoins as a legal tender the government has no influence over the money supply and can't print new money freely.

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Quote from: Kaliandra on January 21, 2023, 08:20:04 AM

I want to ask everyone, can adopting bitcoin help a country's economy? especially countries that are experiencing bankruptcy, for example, as experienced by our brothers in the country of Sri Lanka.

If the country is bankrupt and people feel the consequences of that bankruptcy in bad education, healthcare, pensions, road infrastructure, etc., where is that investment supposed to come from? It's going to have to be pulled from the already depleted money pools I mentioned above. A bad situation, thus becomes even worse. Imagine then the reaction of the people when they find out that the already terrible healthcare they had is now gone because the funds were invested in Bitcoin which may or may not turn out to be a good investment 3+ years in the future. In the meantime, the citizens are supposed to contribute with thought and prayers and try not to die. Roll Eyes

Quote from: Kaliandra on January 21, 2023, 08:20:04 AM

all people who can afford it are obliged to invest in bitcoin, but of course investing in bitcoin is only made as a side job.

How does that help the economy? My investment is mine investment, not that of my government's. Unless the next stage of your plan is to force the people to hand over their coins to their country. The country could potentially benefit from taxes when those coins are exchanged back into fiat. But we are again talking about a long-term investment of several years if it's going to be worth it for the people. If the country is rotten from the inside, the currency you use won't change much. As the saying goes, "putting lipstick on a pig". It's still a pig.

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Entire World have been watching the move of El Salvador which is the first to make bitcoin legal tender. The country have been into criticism, but the country is quite confident in its activities and kept increasing the bitcoin stake. The country is predicted to have a big transformation with respect to the growth of bitcoin.

At present the change is very small and in specific tourism industry have got impacted by the adoption of bitcoin. Slowly this will move to other industries. We even had a thread that El Salvador to turn rich in specific number of years. Achieving such a level isn't possible, but the real adoption will help El Salvador to grow their economy.

This is the story of El Salvador, but depending all upon bitcoin for the economic upliftment of the country is really impossible. So, countries need to focus of diversified economy upliftment strategies.

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First you need to know the reason why Sri Lanka's economy is become worst, it's because the Sri Lanka's government is done a lot corruption. This make the citizens lose their trust to the government and their fiat is suffer high inflation.

If Sri Lanka adopt Bitcoin and make their citizens can use Bitcoin as legal tender, it doesn't solve the inflation on their fiat value, but it does improve their citizens economy in the long run.

But the main problem of Sri Lanka isn't from their fiat, but the government. Accepting Bitcoin as legal tender isn't enough to solve the problem of Sri Lanka's government, because the only way to solve it is kick the functionary which have done corruption including the president.

nullama

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Quote from: Ayers on January 21, 2023, 09:02:26 PM

~snip~
The economy of a country depends on a lot of factors to develop, investing or depending on bitcoin will be very difficult to improve the economy of a nation. For individuals, bitcoin can help, but you also need to remember that investing is not always profitable, there will be risks, so it depends on each person's mindset that there can be a profit or not. Bitcoin is an investment tool like other investments, whether your economy improves or not is up to you to decide, not bitcoin.

Exactly right. At the end of the day Bitcoin is just money, a great type of money, but money nonetheless.

You need to actually have a healthy economy to grow a country, with different people doing different things.

Bitcoin can help these individuals to provide their goods and services to more people, but they have to actually generate those services themselves.

Also Bitcoin helps to keep value of your savings over the long term, compared to fiat.

Ayers

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Quote from: Kaliandra on January 21, 2023, 05:55:45 PM

Quote from: Oceat on January 21, 2023, 05:37:36 PM

In what way do you think investing in Bitcoin could help your own country's economy?

Look at how El Salvador do it then maybe you will have a guess on how they managed to do it. First thing first, you should have to understand how Bitcoin works because it's different from fiat and not every country accepted it which means if your government plan to use it to pay for something during export/import it might not be accepted. They have to exchange it with your local currency first in order to pay. Not to mention the risk of the price going down for a long time especially during bear market which means it would hinder the growth of your economy.

I don't mean to build a country by relying only on bitcoins, because a country if there is still a lot of corruption and others will certainly not progress, but if people invest it will at least be helped rather than not investing at all, and in my country I often see people whose economy is helped by investing in bitcoin? and I also want to ask, have you ever seen someone's economy being helped because of bitcoin?
and in my opinion, if there are people who are economically helped by investing in bitcoin, I think that is the first step in the progress of a country, starting from small things first?

The economy of a country depends on a lot of factors to develop, investing or depending on bitcoin will be very difficult to improve the economy of a nation. For individuals, bitcoin can help, but you also need to remember that investing is not always profitable, there will be risks, so it depends on each person's mindset that there can be a profit or not. Bitcoin is an investment tool like other investments, whether your economy improves or not is up to you to decide, not bitcoin.

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