Topic: Why inflated countries should adopt Bitcoin to help boost their economy. - page 4. (Read 689 times)

@op your point number 2 and 3 is actually a lie in times when the bitcoin network become congested and the transaction fees rises up to the roof, just as we all saw and experienced it do in the last couple of months, in times like that, a country that adopted bitcoin to boost their economy would still have to turn back to their fiat to continue transacting normally as before.

And besides, I do not think a country will have to adopt bitcoin and make it a legal tender before it serves as a source of improvement in that country's economy, countries simply converting their foreign reserves to bitcoin rather than continue with the depreciating fiat could as well do the magic.

And for a fact, I do not think we have come to the point where bitcoin can totally and completely replace fiat, not everyone is savvy with how to carry out transactions on the internet, not to talk of doing it with and through bitcoin, most especially, if we go to the villages and remote places, people there know nothing about bitcoin or how to transact in it, and most won't be able to learn it because they are not educated, so, this is idea of bitcoin completely replacing fiat should not be discussed when ever a topic like this comes up.

The government of El Salvador has made some profit from their Investment in Bitcoin but I doubt if only the gains made from Bitcoin will help the nation reduce inflation. Investing in Bitcoin should be part of the measures to diversify the economy of the nation in a bid to reduce inflation. There is no proof or data that proves that Bitcoin has helped El Salvador to come out of inflation. The view or belief that Bitcoin is the savior of a nation's economy is a utopian one.

Countries with poor economy and also other infrastructures like politics, laws will need to resolve those problems first.

Bitcoin can not, never be able to help such countries to boost their economy and it was not created and designed to do this. In reality, after many years since 2009, even Bitcoin already is no longer a baby, matured enough, got better adoption, at the moment it does not have that power to fix national economical, financial problems. It will not have that power in future too, forget about it.

Countries suffering from poor economy development can adopt bitcoin as a legal tender, but before they can do so, they have to sit and plan for the possible means they can make their best achievement in this, there must be a proper plan on ground that could be of help to the people and this can only be possible when the leaders are interested in the peoples welfare, growth and development than their own selfish interest, then they could be able to present something nice like bitcoin adoption to its people, just as in the case of El-Salvador, Nayib Bukele have put in more efforts in seeing that the bitcoin adoption turns into a testimony today and we can see from how he has been moving the country forward from one aspect to another in the development of the economy through same bitcoin adoption.

I disagree.
For starters bitcoin is too volatile to act as a good hedge. It is a hedge on a small scale and for individuals, but not on a bigger scale for the whole country and its economy. You are also forgetting the bear periods where it continues going down like 2018 (price went from $20k down to $3k in a year). You can't shut down the entire country's economy because bitcoin is on a downtrend for a whole year and a massive downtrend at that (85% drop).

Additionally using bitcoin to solve economic problems including inflation is like sweeping the problem under the rug. It is not going to solve it, at best it may only alleviate it in short term before it shows itself again.
Solving such issues should start by first finding why the issue exists (like why is there inflation) then fixing that root problem. For example in a lot of cases inflation exists because the government refuses to reduce its expenses and faces a big budget deficit which then in order to solve it they print money hence create inflation! To solve this example (although I'm simplifying things) you should fix the budget, eliminate extra expenses, where money is being wasted, etc. and as budget deficit shrinks so does their money printing and consequently the inflation.

El Salvador is an excellent example for this ONLY IF it is studied correctly not based on some news titles you read. This means the economic situation of this tiny country didn't improve because they adopted bitcoin as legal tender, it started improving because a million different things their government did over the past couple of years (attracting foreign investors, improving tourism economy, fixing the budget, battling corruption, crime and gangs, etc.).

It may not really help the economy of the country especially  when we have incompetent leaders but I think bitcoin can help individuals in some countries that their currency is losing value steadily. I know of a country that is having serious problems with their currency, depreciating everyday. If I'm to be in a country like that I don't think I will keep my money in the bank    because doing this after sometime you will notice that the money won't have value due to inflation. I will prefer to convert my money to bitcoin, l the price of bitcoin is increasing which is going to add some value to the money I already have than keeping it bank and I won't be able to solve my problem due to inflation.  

Countries having serious economic Challenge right now, bitcoin can serve as a store of value right now because we are in a season the market is going up.

Accepting bitcoin as a legal tender wouldn't change the economy state of a country. Moreover, bitcoin must not be a legal tender before citizens will benefit from it, as long as bitcoin is not banned in a country, and it is legal to use it, then it will still serve its purpose. You should also note that it will be impossible for bitcoin to replace fiat in future, because it is limited in supply and cannot be used daily by everyone with the large number of population in the world.

Bitcoin was created to be an alternative payment method to fiat, which is that purpose that it will serve. El Salvador adopted bitcoin as a legal tender, it has not change their economy, but it will do that in the long run, since the have the country's fiat reserve in bitcoin. Bitcoin is a hedge to inflation, but you should also think about the high volatile nature of bitcoin. Bitcoin is still facing a challenge of high transaction fee that do happens from those garbage that uses bitcoin blockchain, that will be the worst for bitcoin users when those token pop up again.

Please see this thread for a discussion about whether Bitcoin enthusiasts should be asking for the central government's help in forcing people to adopt Bitcoin.

 If you interview a lot of people about Bitcoin, some would tell you it's a crypto currency used for digital transactions, some could also say it's a digital currency that operates independent of the central bank. You could also here others say it's a digital currency that could serve as an alternative to fiat currency, well they're all right in their different perspective of description. However I also think Bitcoin could be refered to as the future of money. It is the mother of all crypto currency, and has inspired the birth of a lot of other crypto currencies. Well it might take a while before everyone accepts it as a legal tender, but it has the potential of replacing fiat money in the future.
  Bitcoin have a lot of benefits and could affect a countries economy positively due to it's transparency and inflation hedge, however my major point of focus is on inflation. Alot of countries are undergoing inflation currently especially in countries with bad governance, high crime rates and war. Sometimes it's takes a long while for some countries to get out of inflation. But Bitcoin is known for it's volatility and can serve as an inflation hedge to their  economy if only they could adopt it's use for transactions or as an Alternative to fiat. It could be beneficial in several ways because.
1. It is the fastest way to combat inflation, due to it's limited supply, making it more scarce and costlier, which could help strengthen a countries economy.
2. Bitcoin has a transaction cost making it easier for financial industries and traders to carry out transactions without worrying about high cost of transaction fees.
3. It's transaction rate is quicker and can help, business men, traders and individuals transact very quickly.
4. If a government accepts Bitcoin as a alternative to fiat
it could make currency exchange effortlessly and it cannot be influenced by corrupt governments officials.
5. I've seen no reason why some countries would be fighting against Bitcoin instead of adopting it into their system, I think any country doing that is fighting a lost fight and would be forced to accept it on the long run.
 Other countries should use see El Salvador that invested in it and adopted it for transactions as an example of how Bitcoin could affect an economy positively. It's helped  them to improve their enocomy by reducing the rate on inflation in their country, though it didn't occur as fastly as speculated, but in the bull season when the halfing fully comes as speculated their economy could become very robust, since it's adopted over there.