Bitcoin Forum

We all know the Monetary System and how it works. And in this modern era, we often use fiat money and digital money and since the beginning of the fiat money, debt co-exist with it. The debt ceiling is constantly rising because of the number written in our bank books, on a piece of paper that states we have money.

Now BTC comes and a new type of money emerges. And because of the possible growth of the BTC's value can BTC really bring a country on its knees?

I am not an economist but this seems to be identical to the case of the emergence of fiat money.

It could bring a country on its knees If that country didn't regulate bitcoin, If they did then I don't see how this could happen as they will tax it, and make whatever rules they want and since people use exchanges and don't really care about decentralization and their privacy, this is not going to happen. In fact, It's the banking system who will bring bitcoin on Its knees If this continues.

Decentralization, in my opinion, can be the cause of bringing a country on its knees. As far as i know, BTC is an international internet/digital money which is decentralized and there is no one that regulates/control it. Since anyone with BTC can have transactions anywhere in the world without the consent of a government, this may deflate or decrease a country's currency value. Doesn't this contributes to the possibility of having more debt in an international bank or whatever, thus making a country's economy down.

yes it can no doubt about this but i think it will take some more time. as some countries have already started thinking about making bitcion as legal currency. and hope that very soon they will consider bitcoin as legal currency.

I think it's more likely that bitcoin would co-exist and affect fiat rather than bringing down the existing financial system. The price of bitcoin is still pegged to fiat. We still haven't come to the point where we exchange goods or services for bitcoin without thinking of its value in fiat. With the current state of transactions, I don't see that happening. Bitcoin is more likely to just be a store of value. It will give the government a run of its money though. Money stored as bitcoins are out of the banks hands and so by extension the government earn nothing from it.

If a country's economy relies enough on bitcoin, and if the price of bitcoin suddently drops deep down, or skyrockets, then yes, the country could be taken down in a matter of days.
So, the equation is easy, and it happened in the US, this is why countries protect their currencies. I know that at a moment of their history, USD's price was decided by the president every morning to make it fluctuate, and he was choosing arbitrary numbers based on the content of his newspaper.

So the more you depend on a currency, the more you share both benefits and risks. A price skyrocketing could appear to be good for countries, but it isn't, at it causes lack of stability in budgets repartition.

I do not think Bitcoin is created to bring any nation to its knees, instead it was created to free them from monopoly of the traditional finance system.  Instead of bring a country to its knee, I do think that bitcoin can help them to be stronger and developed instead.  If this country saw the potential of Bitcoin then they can profit from it and have an advantage over other country that doest not believe in it.

It is possible if a country allowed its people to drop fiat and move their capital out of the country through Bitcoin. It was happening in China in 2014 and caused the government to impose bans on money transfer.
What happened there was only a small leak, if at least 30% of the citizens thought of this and the government would not react there would be chaos and banks would be the first to fall.

Well it depend on how many bitcoin's that country will own or store as their national wealth. But I don't think that is going to be a simple thing to bring a country on it's knees. And I don't think a country is willing to take the risk for this decentralized crypto currency where everything can be manipulated by those whales, their economy will be dead.

You'd be pushing it if you started to talk about any country larger than somewhere like Thailand.

It would be nearly impossible to bring any first-world country down economically via Bitcoin being used, since there are a lot of other variables in play, including human factors, however, small economies like most of Africa would definitely experience some dramatic competition if Bitcoin ever became a major economic player within their borders. For example, Zimbabwe.

The title make it sounds like bitcoin is a conqueror that will slave a country.

Bitcoin is an alternative currency and I think it will not take over or kill any fiat in a country. The country will simply regulate or ban it if it becomes a threat.

So the more you depend on a currency, the more you share both benefits and risks. A price skyrocketing could appear to be good for countries, but it isn't, at it causes lack of stability in budgets repartition.

I think it is exaggeration to say that bitcoin will bring countries to its knees. A country has always a means to survive and besides, bitcoin is an alternative only that is usually used in online transaction.Still we have to used a local currency or fiat in our daily lives.

Bitcoin is not going to be able to bring bitcoin to it's knees unless someone who is in power in the country to be able to want this all to occur. Countries that are being led by countries that are competent and care for the survival of their own currency are going to want that to thrive.

They'll edge off any rivals in their way, and in this case, Bitcoin is going to be a rival so they're going to make sure to regulate it into oblivion to make sure it doesn't stand a chance at all.


The banking system will just be paying off the politicians in order to make this happen. Going to agree with you on the regulation though.

At some point we're going to see long term lending with bitcoins but I would expect a 3-7% interest rate increase on your mortgage depending on when bitcoins become more stable in a few decades how much they seem to rise in value compared to the dollar or stay the same compared to goods and services.

You're asking the wrong question. The right question is: Do we want Bitcoin to bring any Country to its knees?

The answer is: NO!

Think about what happens if Bitcoin becomes the dominant currency in an Country. The rich and powerful in that country use their wealth and influence to gain control over Bitcoin. Bitcoin then becomes manipulated by these rich and powerful. And Bitcoin becomes the controlled fiat that it originally sought to be an alternative from.

No, let Bitcoin remain on the outside as a less dominating alternative. The longer this can occur the greater change Bitcoin has of surviving.

I think it is impossible since we are the one who controls bitcoin or fiat. We are the one who is using it and without us, there will be no bitcoin nor fiat in this world. Yeah, some people worship money and all what they are thinking about is money, but it doesn't apply in all of us, still, most of the people are not committed like this on fiat, because this is insane, it should be Money work for us and not We work for money.

No it won't happen that politicians will take over on charges of any possible bribes just to make this implemented. People would be the reason why it shoukd be on the country's banking system on digital currency adaptation specially with bitcoin transactions. If politicians will be making this difficult, well its a different story for that and it will deal to silent corruption.

no it can not.
because it is not yet accepted by everyone to begin with so bitcoin is still very small to have any effect. and it needs to be adopted first, that is why price always rises.
and then, bitcoin is just money and money can not do that. government can simply regulate every business that works with bitcoin and we will have the same world with bitcoin as we have with fiat.

There is a possibility if people on that specific country stop using their government's fiat currency and start adopting the use of digital currency which is bitcoin. Then those corrupted politicians, capitalist has no more control to their people.
Then those people who is living in that country has chance to get a better life because they wont drown in debt no more.

If you look at the adoption rate, seriously we are moving on top when compared with the other stocks in the world. Bitcoin will be accepted by the normal people in everywhere but the government and the politicians will not make bitcoin to be legalized money in the country because once it is been implemented then all the funds under government treasure might take under once btc ledger. They cannot loot anything by anyone.

There is a chance but the people needs to unite and they need to dump their very own fiat (local currency) and will suggest to the state that they are going to shift into bitcoins. It can also go this way, that the state is the one that will tell the people that it can be a good thing if they will rely to bitcoins which is quite possible.

Yes especially with a 5 transactions per second capacity network and a cloud like block chain(distributed nodes and mining pools around the world)  with a cloud like vault containing the coins(private keys). the whole world if come together to shut down bitcoin they will not succeed however we all know that united front global nations is impossible :D it also won't work the other way, not the whole network of bitcoin united can cripple an entire nation's economy.
As the coins are being widely spread there is not much of a strong support in any particular country, you can not allocate enough liquidity in exchange for a large amount of bitcoins with the current marketcap. $20B is nothing compared to the financial back bone of most of the countries.

One of the promising benefits of decentralized currency, you can not use it potentially to do harm more than doing good and balancing the justice between the tyranny of world powers against the peaceful countries.

Reason why the idiots of thinking rooms of governments should start recommending their leaders to accumulate as many bitcoins as they can because since bitcoin is no longer a fancy joke and piece of code and has real impact on different levels of society who ever holds more can do more whether good or bad in the future when price per bitcoin is well above $15K.

It is possible, if we are going to talk about those poor countries like Africa, since that they need money, then, using bitcoin could be there way to rise up from poverty, and they are going to worship money if they are going to get addicted to it, especially those greedy people, and if they are going to worship money, then they are going to bend their knees or do whatever it takes just to earn money.

But this is just my thought about this topic, I am not saying that it will going to happen in the future, I am just giving my opinion about this.

It can bring country to it knee as Is decentralized that is people can produce more bitcoin without government knowledge and that creates inflation in the country as government cannot control the currencies in the circulation.the only way government can control it is through regulatory agency or body but I see no one is trying to do that except china.

I don't know if it is possible,because the creator of Bitcoin has no intention to bring any country's economy down,they can co-exist and support it's other,but of course the government will do everything to control bitcoin and make it their cash cow.

Nowhere bitcoin has gained the potential as a mainstream currency, so it won't affect the economic development of a country. It would serve as a good alternative to serve the financial technology through advanced blockchain technology. When the same get used in several sectors the development will be much than the present. So it makes the country stand strong and grow in economy.

I don't think this could happen, Bitcoin is not that strong. Bitcoin can be alternative and some parallel currency but not the mainstream in some country and people would not stop using fiat currencies and switch to Bitcoin only so there is no danger. But governments are more and more aware of Bitcoin presence and that they have to take it seriously.

It won't happen. Bitcoin cannot bring any country on its knees because its not even adopted by mainstream. And even if is mass adopted, the government will not let bitcoin takeover their financial industry like banks because they will be useless if bitcoin became the main currency. Banks are controlled in how much money they can create by Central Banks and Financial Regulators. Banks have controlled the supply of money for so long that they won’t give it up easily. So bitcoin will not bring any country to its knees as far as the financial industry is concern IMHO.

yes currency not a single country is going to stop using fiat. but still they will also use bitcoin in addition to fiat and when all the people will  start using bitcoin instead of fiat then the use of fiat will become lesser and lesser.

YES it CAN  ;D ;D!! Maybe thats the reason why many countries are afraid of supporting it because it can collapse their economy with traders and whales manipulating its price

Are you even serious, how in the world would it bring a country to its knees. First of all no country owns it, it is measurable in $. Maybe one could sell all the btc and wage a war against the particular country, but how long will they last, they won't even last even a while. Plus even before such agencies try they shall be destroyed. So no I don't think any one can do what you are assuming to. But can they cause trouble yes sadly yes they can cause lot of troubles. They could finance terror activities, the thought only sends a chill down my back, what if btc got banned due to these fools.

Unless btc become international currency officially,I do not think it can bring any nation to it knees.
The currency of any country is pegged against dollar and unless dollar fail or a national currency is pegged with bitcoin,chances of happening that is negligible.

I think is can't, because bitcoin until now only digital curency not real curency
in china the big user bitcoin in the world still country(PBOC) control bitcoin, not bitcoin control country

Because of the value of bitcoin today that is why you come up with this topic, but I think even if the value was very great that other fiat money it will not mean any countries down to it's knees because no country is holding bitcoins and it is not controllable by any of that country in fact if a country is using bitcoin they are just manifesting the use of it and because direct transaction was really not a much option with bitcoin the exchanging of fiat to bitcoin or bitcoin to fiat was taxable by some country!

Bitcoin cannot bring any country to its knees. Though there is a possibility of bitcoin adoption the state on the other hand has still the power and control the  use of bitcoin. The government will simply declares the use of bitcoin illegal and it will be worthless on that country. But even though bitcoin cannot make countries fall on its knees but it can befriend countries and work hand in hand with it.

Yes but it is not that easy because these corrupt politicians may pass a bill to ban bitcoin with some false accusation to save their backside and also try their best to stop bitcoin from over taking their currency but all i can suggest is bitcoin will not replace any particular currency but it will as best alternative to any fiat.

It's a tad suspicious that you're a full member on the forum and yet have no understanding of even the most basic principles of Bitcoin.  Maybe you haven't been here as long as your account suggests.

People can't just create new Bitcoin, the amount of Bitcoin that is created is based on blocks that are mined and is set, to reach a maximum of 21 million around 2040.

I think that if Bitcoin's adoption was reasonably gradual, it would not cause too many problems for the country.  It might be harder to regulate though, which could result in tax evasion (although, legally, you would have to declare your earnings, this could be avoided).

but i think currently still there is not a single country who have accepted bitcoin as legal currency. but i think if future there are more chance that government will accept bitcoin as legal currency, because the new generation are taking more interest in bitcoin.

Dump their own fiat? I dont think so that they would do such action and as long the government would be the ruler they will surely obey on whats the law on that particular country when it terms of currency.As we all know not all people on a country would have the knowledge about bitcoin,we cant still be sure on that. Putting a country to its knees about bitcoin wont happen.

Well, Tulips have brought countries to their knees. So, maybe?

Only for that reason,china fears bitcoin and has given regulations to the bitcoin exchanges in its country.China does not want its country's assets to go outside via bitcoin.If china has not implied these regulations,in future,bitcoin would have brought china on its knees.when bitcoin can do it to such a big country,its clear smaller countries cant even stand against bitcoin.

the conclusion is that bitcoin can provide a big change in a country. bitcoin give different financial system of a country.
anyone could take it with positive and some are not.

nah, i don't think so. bitcoin is not big enough to do such a thing. you are looking at a small picture, instead you should start zooming out, compare bitcoin with other things in the world that are similar and you will see. financially it is too small in my opinion.

If it will bring any country to its knees then that will be the United States, because Bitcoin is quoted in US dollar terms than any other currency.

If people want to use bitcoin and at the same time remain anonymous, then states will simply cease to exist, because they will lose their means of subsistence. And the fact is that due to taxes the country keeps on the level.

And if that is so, then there's no chance on making it possible. Unless the government is the one that will introduce it to the people and explains clearly that bitcoin can help their economy to boost. They need to be good on explaining it to their people so that their citizens will be encourage easier and in the nicest way.

I do not think Bitcoin will bring anyone country to its knee.  First it won't be adopted as main currency and if ever acknowledge will always be an alternative.  Nation won't make use of Bitcoin to run its economy so definitely it has not much negative effect on a country's financial status.

I guess it will not bring any country down, because not everyone adopt bitcoin, and we still need a lot to this thing to happen, despite the debt rises, the country will not let that things to happen, to let them down. But in future maybe after 10 years, bitcoin will be the only currency acceptable everywhere.

I really doubt that will happen,yeah it's true that BTC hold a lot of power but at that moment it's highly unlikely for it to have such an influence over any country,I guess the only reason for that would be the country to be in front of a bankruptcy and BTC to be some sort of rescue.And even then it won't be exactly the scenario where BTC will put the country on it's knees,but rather BTC will be the rescuer

If a country’s economy relies enough on bitcoin, and if the price of bitcoin suddently drops deep down, or skyrockets, then yes, the country could be taken down in a matter of days.
So, the equation is easy, and it happened in the US, this is why countries protect their currencies.
So the more you depend on a currency, the more you share both benefits and risks. A price skyrocketing could appear to be good for countries, but it isn’t, at it causes lack of stability in budgets repartition.

As a rescuer it would be possible but not would be the main thing that a certain country would put down to its knees.We might see the goodness and potential of bitcoin and somehow we could really say that a country must able to adopt it completely but government would really see not to convincing at all seeing on the aspects and features of bitcoin.

I doubt that it will bring any country to its knees, as other countries still ban the use of bitcoin. refer to ..https://www.cryptocoinsnews.com/top-10-countries-bitcoin-banned/ . Other countries has different views about Bitcoin and that they only see the downsides that it may induce in their community. They are being very cautious about bitcoin and I guess by the time they accept and realized the positive effects of bitcoin, they will have their own back-up plan in case Bitcoin goes south and greatly affects their financial system.

Unfortunately I will have to subscribe to this thinking because its actually what countries are scared of especially the movers and shapers of the economy because one thing they want is to find a leak in the system and so far they are yet to get. The implication of adopting bitcoin without the leak is intepreted to mean full liberation and on the negative part could make movement of money easy without any trace which could literally bring the country to its knees.

Even on 10 years time bitcoin isnt the only currency would be acceptable anywhere and thats my point of view even the adoption is on the process it cant bring a country to its knees since its already independent even on without bitcoins existence which means they cant rely or see benefits from it specially to government which really dont like on decentralized things like bitcoin.

Debt, trading imbalances, bank fraud, bad government, and the EU are bringing countries onto their knees. Bitcoin is just one of the ways sensible people can safeguard their futures.

It is possible if a country allowed its people to drop fiat and move their capital out of the country through Bitcoin. It was happening in China in 2014 and caused the government to impose bans on money transfer.
What happened there was only a small leak, if at least 30% of the citizens thought of this and the government would not react there would be chaos and banks would be the first to fall.

I think that such a threat exists for countries with a weak economic system. Where the population is poor. People who find out about Bitcoin will use it because of small commissions. The economy will suffer losses. The budget of the country will not be filled, and this is very negative.
Countries with a strong economy simply will not feel the influence of bitcoin