Bitcoin Forum

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I always thought that the economy depends on how money is used and how much it is used in local production, etc. After all, an effective economy is when people use money to develop various industries (food industry, scientific discoveries, medicine, etc.). After all, money is just a measure of the cost of various services, products, etc. A rich country is not one where there is a lot of money, but one where people live happily. And it doesn't depend on money (just indirectly), because it depends only on actions in different areas of life, and on what you do yourself (and how much and how well you do it).

Let me ask you one question. Assume that you age is 35 and your wife's age is 31. Then what is the age of your neighbor's wife?

Your question sounded very similar to the obove one! Bitcoin trading can make few hundred people self-dependent. But to impact an economy loke US, it is too small! There's no way bitcoin trading can impact the economy of a country unless we see a mass adoption by over 50% of the population!

I lived in a third world country, but the effect of Bitcoin is not even felt. So I will assume that it doesn't matter if you are as powerful as US economy, Bitcoin will never help their economics and financial grow stronger. I really don't understand where that premise started, but it doesn't have a point and its seriously flawed in the beginning. Bitcoin earning will just gave people economic freedom but it won't put a dent on the countries monetary market.

I read the title, I thought this was about how Bitcoin can affect the US economy but then I realize, the question is reverse, lol. This thread must be on Speculation section, IMO.

So, if that is true (the GDP increases) means that people have more power to buy things, more money to spend, that will ideally increase demand of products including Bitcoin. Unfortunately, we can't speculate the price of Bitcoin based on only one country since Bitcoin isn't controlled by anything. But we can be sure that there would be a chance to see the increasing demand of Bitcoin in the future. Then, there you could see that Bitcoin will have high value.

Uhh I don't think so? Bitcoin trading profits come from other traders, just that the form of measurement for most famous exchanges in USD. Even if we say that there are a lot of traders in the US, remember that they are possibly taking money FROM each other. Idk about this year, but last year, US had the largest amount of Bitcoin traders, and from this, you could already get the concept of US citizens outtrading each other to profit.

Also, the issue with manpower = stronger, isn't it supposed to be more development made = stronger? Especially since we are in the age of technological development. Not saying that geniuses is all that a country needs, but rather a decent balance between the two would make a country plenty of strong imo. It is like a cart without any wheels isn't going to work, and wheels not carrying any cart is pretty much useless as well.

Exactly, men power is very important for the countries but as much as how much of the worlds wealth they posses. When one nation has more money than the bottom 50, that kinda skews the favors for them and even without really producing anything yourself or even no employment at all, you will have the money in your nation and all other countries will want those products.

Apple literally produces their phones in China and sells it to other nations yet makes the money as a USA company, that tells you how much you need to know about being a big brand. Same goes for German cars, they are manufactured in all sorts of different places all around the world but they sell to every other nation as a German car company. As long as you have the big brand, you don't need the men power.

I agree with you--the bitcoin economy is absolutely dwarfed by the aggregate economy of the entire world.  Just think about how much money is in circulation, not just in a single country but in all countries.  And then look at the market cap of bitcoin.  There's no comparison; bitcoin's contribution doesn't even make a dent, nor do I think it ever will.

I'm not even sure trading even contributes to the economy all that much, and my grasp of economics and finance is certainly not that great, so I'd rather not give my opinions if I can't back them up.  However, bitcoin trading is also dwarfed by trading in the stock market (and other markets) done by huge institutional investors, who so far don't seem to be all that interested in crypto.

You mean USA to allow new immigrants for the job of bitcoin trading? What will be the role for a government in a trading field? As far as my knowledge on trading, it is just a self-job, a country may get benefits from a trader by collecting taxes.

If a government plan a wide agriculture farm or a production factory then they may recruit workers from foreign which may end up in building their nation economically stronger whereas the outcome of trading is not a definite one. A trader may book profits or losses at any time, chances for both is almost equal. So, even a government plan to support large number of traders that cannot assure welfare of all the people. So, trading field should not be considered to build an economy stronger.

I accidentally spilled my coffee while reading this OP ;D

What a strong statement, care to mention the source?

Wait what? Leaving their legit jobs for day-trading? I'm pretty sure amateur day-traders can be considered as unemployed.

It won't (at least in my opinion).

Where the 10x number comes from? Your imagination?

Who knows? Is there any correlation between the number of traders and the price?

In terms of trading Bitcoin, it will positively affect a country's economy.

As our teacher in the past said it, the money that is supposed to be for other country, you are using for your country. Let's say someone paid you some Bitcoin, then you want to convert it to fiat that you are using. You are adding an additional way for other money to come to your country. That is the same as you working in other country.

I'm waiting for a thread where people wonder if Bitcoin can reduce animal suffering.......

I don't understand why people think that Bitcoin is a magical pill that improves every aspect of our world. It isn't a magical pill and it never will be. It's one of the many alternative assets and that's where it ends.

Bitcoin's actual volumes are pitiful. In reality there is about ~$100-$500 million in daily spot trading volume depending on how much volatility there is. All the volumes reported by coinmarketcap are >98% bogus (ie- nonexistent).

Higher GDP rate means stronger economy.

Higher the men power or population means the GDP rate will fall.

So increasing the men power won't make any economy stronger but being an exporting economy will do that for you.

Yet, we could never underestimate the current exact volume of the cryptocurrency's. There are much higher profits in trading with the crypto markets and hence the initial amount we could see in the marketcap can be extended in no longer time. Also there have been a lot of people who are actively engaged with cryptocurrency trading and most of those have immense benefits from the advantages offered by the decentralized markets.

These money directly increases the economy of each country as the profits won here are directly available for withdraw without involving any centralized authority which means we never have to pay any taxes and hence the GDP might not rise but the people in each nation who are related to crypto trading might stabilize their financial lives and start developing some local businesses which would directly lead in the development of the county.

It wouldn't affect that much especially when bitcoin is still in its early stage of adoption and only few people trades it, it can't really have a significant effect in the USD price, but it could someday replace it, if a global financial crisis occurs and
by far bitcoin has established new ways to get useful by trading, services in local businesses, buying products and clothing. The point is, in the near future there might be no need to convert BTC/USD at all.

If countries can increase the UBI system to a level where it works (right now there are unemployment benefits in some countries) there won't be a need to have a nation with workers, we can literally have a whole nation with absolutely zero workers and still make a profit at the same time.

All they have to do is sell the information they have and that would be enough, for example if one nation has a patent for the greatest car ever built, they could rent that patent to another nation and they will manufacture it and sell it and make money while the other one collects rent for the patent. I am not saying that makes sense or doable but it is literally possible. A whole nation of academics would still survive theoretically yet it is not practical and would eventually fail in the current system.

Human resource is the most important resource on the entire globe. We humans can really consider any heavy work and also can work for maximum time in order to serve ourselves with higher profits. Major countries like US, China, etc have started offering various jobs for foreign individuals who want to start with a regular job in foreign nations.

Moreover, why these people are willing to move outside their nation in order to work for some other country is because the wages they get payed there are comparatively higher than the amount of wages they would get in their nation. Also talent is in most demand and many huge firms like NASA, etc are always hiring new individuals with emerging talents to broadcast their firms.

I don't think that Bitcoin will make the United States of America economy stronger than what it is at the hold to the fact that they are not holding the largest amount of Bitcoin in circulation and adoption is another major issue with Bitcoin and crypto currency in general.

ATM the value of the whole market of cryptocurrency ( $280 billion)and bitcoin ($180 billion) itself looks a little insignificant to a $30 trillion economy of USA. It is believed that a trillion marketcap at the next bull is capable of moving the economy to adopt some factors of crypto in the economy. The question will still be the factor for adoption of a volatile digital coin for any use in such a large economy. If regulation works as expected  and liquidity increases with confidence on security we could see significant progress with time in the space

I don't see how the trading Bitcoin impacts the US economy. Perhaps you mean if it'll help with some job creation? As more jobs can become available as more people are moving towards an self-employed status. Well, there's one way in which Bitcoin/Crypto trading can directly have an impact – the government can impose taxes on the people trading bitcoin. These revenue can be used further to strengthen the economy or directed yo other sections of the economy. Do note that this is not a really viable option and thus, might bot work. Bitcoin's market is still at infant stages at the moment. In the future though, it might change. Until then, it hasn't been empirically invested.

Idk why op deleted thread's title, it's a good subject for huge bitcoin enthusiasts to make them believe that bitcoin isn't that lifechanger as they think.
At first cryptocurrency trading isn't that much profitable and stable, when you have a family you need more stable income. And in trading when you profit, someone loses.
So you have 100$, I have 100$, if today I own 160$, you own 40$ and who knows, maybe in future I may make mistake and you - right action and I'll have 80$, you - 120$ or maybe both of us lose and someone will have additional 200$.
What boots country's economy is foreign trading and it was like that all the time. To make it more clear: Imagine I produce potato but it's expensive for me because soil isn't that good, nitric fertilizers aren't that cheap and etc. And finally 10lbs potato produced by me worth 6$ while I can import it for 4$ from Turkey for example. Why the hell do I have to still continue this job? But now imagine, to produce smartphone in USA worth a lot while china is ready to make this for you for some bucks. Why to still produce in my country while another countries give me so great opportunity?
Now also imagine electricity is cheap in my country and I have a lot of natural resources, why not to sell it on others? If electricity worth 3 cent for me and for my neighbor country it worths 10 cent, why won't they buy it from me?
This is what boosts economy, do what you can for yourself and others and let others do things what they can at their best for themselves and for you.

Yes, a nice point. This is one strong factor that can make a country stronger and not bitcoin or bitcoin trading because it does not get to the government directly. Even if some part is taken as tax, it still a very small part that can't really do much plus tax evasion.

Except government investment directly to the economy and get a foreign exchange, the economy might not really see expected growth.