Bitcoin Forum

I'm asking because even today in Argentina, merchants will still prefer to accept the Argentine Peso regardless of the hyperinflation that devalues their currency. This is just based on what a friend said to me.

Analysts emphasized that people still accept the local currency because there is a working banking system in the country which means that Gold, Silver, and Bitcoin, will only work when there is already no financial system that is working. This sounds like chaos already. If you are to prepare for what is to come would you wait for the chaos to start?

President Melei expressed he is a Bitcoin President which is why I think there will be adoption of Bitcoin in the country since there are news already popping out such as:


If at first, we are only seeing El Salvador mining BTC through their volcanoes, I think President Melei is following that path in mining BTC as well.
If you see the future and how the smaller countries follow the path, you may be seeing the populist candidate in your country being a Bitcoin president. One that is rising as of now is Maya Parbhoe from Suriname. She is running as president in a country that might also be adopting Bitcoin in the future. The number of presidents changing thier stance about Bitcoin will grow gradually and Trump is even one of them.

But for now, I want to introduce you to Maya Parbhoe https://www.youtube.com/watch?v=o-Bc4MpSyXo

Argentina's government can mine Bitcoin if ever they want and it's not related to the hyperinflation that they're having because it is just another source or business that they're having.

And most of the countries that are into hyperinflation, they're using other currencies that they can accept. Like for Venezuela, they're accepting US dollars and people there are using bank transfers for every purchase they make.

So, going with Bitcoin as their alternative currency for payments, it's not impossible just as in other countries. They've got merchants that are accepting payments in Bitcoin.

They're sitting on a goldmine of Bitcoin potential, using their own gas to mine it, yet they're still clinging to the damn peso, a currency that's bleeding value by the day. It's like they're addicted to the familiar, even when it's killing them. But here's the thing, comfort zones don't last forever. Their banking system is holding on by a thread, and Bitcoin isn't going to wait for them to wake up

Look at El Salvador, look at President Bukele's balls-to-the-wall approach with Bitcoin. It's not just a national policy; it's a blueprint for other countries tired of the same old broken financial systems. This is about recognizing that the ground is shifting beneath our feet. We're not talking about hyperinflation as some abstract theory anymore; it's a pattern we're seeing play out in real-time

And don't even get me started on Maya Parbhoe in Suriname. She's got a vision, man, and she's using Bitcoin to stabilize her country's economy. This isn't just about making money; it's about using technology to rewrite the rules of the game

I check on Wikipedia (https://en.wikipedia.org/wiki/Legality_of_cryptocurrency_by_country_or_territory#Argentina), Argentina's banks still ban banking transactions related to Bitcoin[/url], I hope Melei will allow banks to accept funds from Bitcoin and didn't use his power only for him i.e. he mine and own Bitcoin, but the citizen has a harder way to own Bitcoin.

"Adopting Bitcoin" isn't necessary must be accepted as legal tender, it only need to not get banned in anything.

Bitcoin is good as a store of value, but for daily transactions, it's not yet preferable.

The short answer to your question is NO. Bitcoin is a volatile financial asset and a store of value. It's like asking the question "Will the country adopt gold in order to replace a hyperinflated fiat national currency?" Of course not. You have to remind yourself about the Thomas Gresham's law that states "bad money always pushes good money out of circulation". It's better to spend worthless Argentinian pesos for goods and services, rather than spending BTC or gold. The Argentinian pesos might lose value tomorrow, while BTC and gold will most likely increase their value in the future.

They may adopt bitcoin like El Salvador but it won't solve any of their economic problems.
For example the case of Argentina that you used is the consequence of a crazy person being elected as the highest ranking official of the country. Just check the inflation charts as a clear indication.
Argentina had high inflation before him but it is around 40%. Then el Loco was elected and inflation jumped up to 133% in 2023 and to then to 249% in 2024. That Is Crazy...

Now back to El Salvador. The economy of this small country has been improving NOT because they adopted bitcoin but because they had a much better government that has been using their collective heads to improve the economy and solve the issues instead of creating new ones.

I also have to mention that bitcoin's volatility can hurt the country's economy even more, specially if we end up experiencing a long bear market after they adopt it while having severe economic issues.
Also Argentina currently has billions of dollars in budget deficit, mining bitcoin is not going to help that either.

On top of that, the crazy man is doing a lot more damage to crash the country's economy. He has also been doing things like cutting energy subsidies that worsens the inflation, damaging the job market, local production, etc.
And worst of all he is printing bonds and selling them, which is effectively increasing the national debt, increase inflation and dump the local currency even more! The worst of these effects will be seen in long term as the government that is already out of money has to print more money to pay the interest on those bonds...

That's just the tip of the iceberg. In comparison Bukele never did any crazy things like that in El Salvador. That is why the inflation rate in El Salvador has been declining and is currently at 0.77%.

If they do it, they will not be the first country which officially mine Bitcoin nationwide and at governmental scale. I can remember Bhutan, El Salvador are one of countries which have governmental Bitcoin mining activities recent years.

El Salvador mines 474 Bitcoin using geothermal volcanic energy (https://cointelegraph.com/news/el-salvador-mines-bitcoin-volcanic-energy)
Bhutan has been mining Bitcoin with hydropower since BTC price was $5,000 (https://cointelegraph.com/news/bhutan-bitcoin-mining-with-hydropower-since-btc-price-was-5-000)

If their countries have problems with hyper inflation, it is consequence of long lasting improper and unhealthy economics policies over many years and they can not simply use Bitcoin as a rescuing mean for their economies or hyper-inflated fiat currencies. Bitcoin does not have such magic impact on any national economy and fiat currency.

Exactly. Whether inflation or not, countries exploring the Bitcoin technology is the best way to go. I am somehow close to how governments are run, with the little information I have, exploring new ideas and sampling them on the country is the best way to sustainable development in any country. Countries that thrive the most are countries that take their time to explore new ideas and advancements, whereas, countries that do not open doors to technological advancements, have a delayed or lack development as a whole.

Bitcoin is one monumental advancement to the world of financial technology and the earlier governments open their arms to it, the better. Aspects that will greatly benefit the government will especially be via investments

I think there is no better option for countries that are greatly affected by inflation but to adopt what makes them earn money with so little investment and put their resources to use. The unused energy they have shall be used to make money just like the geothermal of El Salvador. If a country has falls that can produce energy, that might just be saving their economy too than adding more debt by printing.

I want to believe that we already have seen enough with the impact of inflation on the economy and the next that should be trending is on how many countries will be using an alternative currency to evade the influence of inflation on the economy and experience growth, bitcoin has given everyone adopting for it use the privilege of running a financial system under a decentralized system whereby the government have no control over the entire way of operation on this, and now that the people have already seen and identified what they want with bitcoin, we all need the support of government together towards achieving the complement together in working against economy inflation.

Broken system? Hilarious that is.
It might be corrupt, but that are all human led systems

Adopting bitcoin as an alternative currency doesn't change anything In a country that is facing serious inflation challenge because the cause of inflation is when a government is unable to manage things pertaining to economy in the country. Bitcoin is always volatile and it is an asset that you can't always depend on, Bitcoin is just a store of value for longterm investors. Just imagine a country one's to adopt Bitcoin just because of inflation and the bear market begins to occur, it is only people who are ready to invest longterm that can cope with it adopting bitcoin can't solve anything about inflation, rather inflation can be eliminated if the  right things concerning economy are done.

It takes alot of consideration to switch to another currency. Basically when you announce that another currency as legal tender, you are basically pronouncing to the whole world that your own country currency are useless in this case the argentinian pesos. This could hurt the entire country economics and not to mention all other political stuff within the country as well so this is a pretty rough choice to take

As for El Salvador's case, they were using USD before bitcoin was announced as their next legal tender so there were not that much risk compared to Argentina that have their own specific legal tender

The question is, can Bitcoin solve their economic problems and reduce inflation in the country? If yes, how?

If they start mining Bitcoin with gas available in large quantities to them, it might benefit them and the government might have more money to spend on the country and hopefully reduce inflation for the people, but it is not as easy as they might think it is.

When we talk about Bitcoin adoption by countries, they aren't going to make Bitcoin a legal tender for as long as their currency is alive and kicking as you said, they know they would lose a lot of control if they allow their people to use Bitcoin or other cryptocurrencies for their daily purchases or their financial activities, and governments and authorities can't let that happen, no matter what country it is.

Hyperinflation will not force countries to adopt crypto, as they still have other focus and dealing with such situation I believe, crypto will be their last resort. The situation in Argentina is worst and seriously, they are dealing with this for years already and yet they still banned crypto and Bitcoin, though you can still adopt crypto as long as you know how to transact this without violating the terms and conditions of the exchanges, if you are in Argentina and sees the potential of crypto, better to adopt on your own.

Wouldn't Bitcoin just protect the value of their own individual assets? Even if the government themselves started mining BTC, there's probably going to be a light impact, if not zero with regards to their economy. I don't think it'd ultimately help the country in improving their economical situation, that would stem from the governance itself, not the currency used.

Not to mention Bitcoin is a highly volatile asset. Yes, the country's inflation is high, but BTC's volatility may be a lot more damaging in terms of reducing their assets value in a shorter amount of time in some scenarios.

That's a good news for the Argentinians and of course hyperinflation would be a point of time when people doesn't need to be persuaded to adopt crypto currencies as it has long be emphasized where the crypto adoptors such as this platform has also been offering the speculation services.
Meanwhile.... The crypto adoptors in my own country has contributed effortlessly ranking top six globally and ranks first on the trading of p2p exchange. While investors and the crypto adoptors are expecting more support from our government to facilitate on adoption to a official legal tender of the lucrative innovation, our government are busy shutting down the CEXs from associating with our fiat and asking the CEXs to disclose the names of Crypto users to them so curious and desperate like the crypto adoptors did some shit stuffs affecting the national in a negative count.
But meanwhile this crypto invention has been offering sources by which the citizens facilitates of payments and also holds for investments that alternatively contributes to the economy in the society.
Honestly we the crypto adoptor Nigerians do envy those countries that their governments in one way or the other supports the crypto industry.

I want to see how the economy will develop with hyperinflation on a global scale, and when that happens, will hidden methods such as real estate, gold, stocks, bitcoin,...can be seen as a solution.

And bitcoin is only a small part of the current economy, the fact that the scale is still at the same level as the value of a certain leading corporation collapsing will have an impact, of course there will be different ways to recover.

I don't think that the reason for bitcoin (crypto) adoption through negative situations, it's just that people realize its usefulness to be able to prioritize it more.

There are some countries in the world facing heavy inflation in their countries today but their governments will not think of Bitcoin as their alternative to their challenges, because they know that they have other sources to solve the challenges without adopting Bitcoin to help their citizens to embrace deflation.  Those countries that adopted Bitcoin in the past, they didn't adopted Bitcoin base on the information but they adopted base on, it will help the country to develop higher to create more opportunities for their citizens, which we have experienced such development from El Salvador and other countries that adopted Bitcoin. I think, Bitcoin can reduce inflation from any country that will adopt it, because there are a lot of opportunities that follow Bitcoin which the youths can use to improve their business by using Bitcoin as a payment and other things in their businesses.

The macroeconomics differs from the individual economy, and therefore the solutions that are followed for individuals differ from the macroeconomic solutions.
Bitcoin will help individuals increase their wealth, not governments (this may happen as part of a comprehensive plan, but Bitcoin alone will not do this).

Bitcoin alone will not be able to solve all of our economic problems in a country however it would be more of a domino effect. Once the investors of bitcoin get wealthy and they start actively participating in the economy this will result in an increase and positive activity of the overall economic scene.

This could then stimulate the economy because we know increased economic activity is a good thing so one thing will lead to another.

That's a double edged sword.
Another way of looking at this is bitcoin can make a lot of people poorer, specially when they look at bitcoin as a tool "to get wealthy". What we call "weak hands" consists of such people in general. For example they buy bitcoin at $40k and then panic sell at $35k just because there was a correction then buy back at $50k just to panic sell at $45k.

Bitcoin is Bitcoin and there is a market to trade Bitcoin. In the market, money flows around and bitcoins change hands among different people. I win, other lose and Bitcoin itself can not bring wealth to everyone in the market.

It can help intelligent investors who are disciplined, well strategied and already learned about the market, before investing, to get profit. It can not help lazy investors who are not actual investors but more similar to speculators or gamblers, they will lose money in this market to intelligent investors.

Gamblers are more sensitive with fud and more easily be panic with news than intelligent investors.

I think it could also segregate the rich and the poor even more.

Even though investing in bitcoin with only little amount is possible, those who are capable of investing huge amounts will obviously be richer than the rest and those with no knowledge about bitcoin will get left behind.

It won't, they'll probably just make another legislation or law to create another currency for the country, sort of like a reset to their old currency but it's a drastic measure though. It would be a really difficult thing to do though, to use bitcoin as an alternative for a country suffering from hyperinflation, the difficulty would stem in the fact that bitcoin is expensive and the volatility of the market would be a really hard time for a complete adoption, look at what happened to the Chivo wallet in El Salvador, there's not a lot of activities right now in their wallet and they've become a victim of recent hacks thus lowering the trust in that wallet, bitcoin won't be the biggest solution that you can get when it comes to hyperinflation, there are other reforms and legislations that are outside of bitcoin adoption but still in the scope of economic management that will be better to be focused on  that would significantly impact that hyperinflation issue.

Yes, that's the case in any country you visit, the reason for that is the availability of the traders and in simple words exchanges. Merchants prefer Argentine Peso in Argentina because they can easily utilize that Peso and can buy goods with it again without much difficulty but as compare to that using of Bitcoin isn't easy and that's why merchants try to ignore it.

I know that Bitcoin is very important and it can be very useful as a reserve asset but it's not good for transactions anymore due to the congestions that take place on its network and similarly Bitcoin isn't safe from hackers and that's why the ones who aren't knowledgeable about Bitcoin don't prefer it as a way of payment and still go with fiat system.

It won't be easy for a whole country to start adopting Bitcoin as an actual currency, but it will definitely be easy for an INDIVIDUAL to adopt Bitcoin as a self-custody Store Of Value. To illustrate the point, pretend that there was a Banking Crisis that caused a bank run, and with many people having lost access to the money in their bank accounts. If you have some of your savings HODLed in Bitcoin, then you would have a fall-back/back-up.

It feels like those struggling with hyperinflation should have very low trust in fiat and thus be encouraged to try Bitcoin as an alternative. Moreover, Bitcoin is actually less volatile than some of those hyperinflationary currencies. But it's interesting that the op points out that it's not happening in Argentina. Perhaps familiarity and status quo play a bigger role than some expect it to play, and people want stability which, of course, they still associate with fiat and certainly not with Bitcoin.
But we'll see the road Argentina will take, and perhaps Bitcoin can become huge there if the right infrastructure for its daily usage becomes available.

They'll be forced to accept Argentine Peso and that's normal. Every country prioritizes national currency and demands from every business to accept it.

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I don't know why but too many people misunderstand how economy works. First of all, let's agree that Bitcoin is not a magic stick, then we also have to agree that money means nothing if we all sit at home and do nothing.
Argentina has to stop printing money instead of adopting Bitcoin. They have to stimulate people, young ones, the workforce, create a good working environment with normal salaries and improve the quality of life of people. But sadly, instead of that, they make populist statements, blame different things and so on.

actually adopting bitcoin as legal tender in argentina will not solve the hyperinflation problem that is occurring in that country. even when the argentinian government plans to carry out bitcoin mining using their gas it still hasn't solved the problem. because the problem of hyperinflation is very complex and cannot be solved with just such a solution.

especially when discussing argentina and el salvador, these two countries cannot be compared, because firstly el salvador is a much smaller country compared to argentina, secondly argentina has a banking system that is still active with debt securities that are still active, and thirdly, the value bitcoin is still not stable enough to maintain argentina's economy. so there are many reasons why even though president melei really wants to adopt bitcoin, he can't because it could make the problem worse.

Yes, some countries will adopt Bitcoin when Hyperinflation makes things really ugly. Sadly, many places - including the USA - will probably be very loud and clear that they consider BTC to be the cause of a Global economic disaster. Our community needs to help educate the masses to not believe the lies.

There is a continuation on this pattern lol. These people will ended up spreading FUD about how scammy bitcoin is to an average joe after they lost money


You basically cant do anything to it. USA thinks they own the world and they will chase you up with all those SEC charges when they smell something fishy. Im actually quite content with current bitcoin status, as a digital asset and not currency. By standing on this status quo, there is a good chance that we might be standing next to gold marketcap in like 20 years or so on without having to worry about anything like SEC making scenes regarding cryptocurrencies all over the world

Investing, just as any other thing in this world is not made for everyone. I wouldn't feel bad for them nor would I blame bitcoin for their losses because such is life.
Even children are not for everyone. Most people will take care of them, but some parents turn out to be pedophiles, or leave their children to starve while they're getting drunk.
If someone is a weak hand panic seller, he's not an investor material and you could give him some money for free and he'd eventually lose it. Now imagine what such person will do under real pressure that can be created by taking a loan to invest in bitcoin and seeing the price lose 10% in a day.
Back to the topic, bitcoin can be adopted, but I doubt that people will see it as a currency. They'll rather see a store of value and that's what countries and pension funds want. They'd rather have a deflationary store of value than a stable currency.

In my research, Venezuela is one of the countries that, due to hyperinflation, was able to adopt bitcoin to survive. That's why they are still thankful, because hyperinflation seems to
have been a blessing in leading them to Bitcoin adoption.

I hope other countries can also see how Bitcoin can provide financial help or solutions to each country's economic problems.

reference:

a. https://youtu.be/M_eIlWYbQ-I
b. https://www.weforum.org/agenda/2017/10/this-latin-american-country-could-adopt-bitcoin-as-an-official-currency/

I am not entirely sure if that is right. I mean I do not disagree that it is volatile and the fact that it is a long term investment, but the fact is that we are going to probably see a lot of people who will approach bitcoin as a great method when there is hyperinflation, which they did during the pandemic period.

Why do you think that we broke the record and reached a new all time high, and even ETF's got accepted after that? Because people realized that hyperinflation was a serious threat and that is why we are seeing what we are seeing right now. A lot of people realized that they need to make their money one way or another, and because of that we are seeing the changes in the price eventually, bitcoin could be a solution to it.

the thing that holds back most of country from adopting bitcoin is the volatile nature of it, some country just worry so much about the fluctuation that it could spell an end to their economy since some of country economy are fragile towards any slight economic phenomenon I think thats why many countries just decide to adopt bitcoin in other way such as just recognizing it as a commodity for investment and thats it.
there are many countries with the citizens not being able to afford fluctuation and price inflation let alone price swing of massive 10%-20% within a night so I guess that might be the reason.
but countries could definitely adopt the technology though since the technology of blockchain is really a breakthrough for voting for example.
but I doubt it will be adopted as a currency in this time around, so many countries are just simply too hesitant because the price could vary a lot.
thats why they also create CBDC in the first place.

Yeah, there are governments that have already announced that they're mining Bitcoin. But it doesn't matter at all whether they'll do it or not because we can be sure that there are citizens from their country who have been mining Bitcoin and are low profile.

The government has the big contribution as usual with hyperinflation. Wrong decisions from their leadership and other policies that are not pro citizens can cause pull outs of big investments and businesses in the country.

As long as it's very beneficial to the country, they've got cheap electricity and they can invest to ASICS, that's no problem to them if they'll allot a fund for it.

But it sounds odd if they'll use public funds for it.

This seems like a pipe dream for bitcoin enthusiasts. While bitcoin has proven that a decentralized cryptocurrency is possible, bitcoin doesn't have anywhere near the capacity to handle all the transaction activity of pretty much any country in the world. It is not efficient or fast enough to handle it, plus it would struggle with all the micro transaction type day to day activities. When people are out shopping, they are not interested in waiting around for the Blockchain to validate their transaction. Credit card and other payment processors are already doing this much more effectively.

I have hope that hyperinflation will get to a certain extent whereby many countries will have nothing left for them as an alternative to perfect their economy than in adopting for bitcoin use in the country, because over several years, the fiat system and government couldn't help in the situation of the economic challenge than to create a sustained inflation towards the economy and in which the people are the ones being affected the most.

there are a few options to do but some of those options are not for the fainted hearts. but as long as their central banks can print money, it's going to be tragic for the lives of the people. BTC would have been good if they tried adopting when the price had taken a nose dive to $17k. but i think it's still not too late if they start now.

a few months ago Melei was trying to adopt USD. i guess he also realized that all currencies are devalued.

Gold & silver are not going to be used in any sort of hyperinflation setting, nor is bitcoin--at least not widely.  There have been recent examples of hyperinflation in a few countries (over the past few years), and if a country's currency suddenly becomes worthless people will try to get access to and use another stable fiat currency.  That makes a hell of a lot more sense to people than using gold/silver, which they might not have and don't have money to buy or bitcoin, which also has to be purchased on an exchange that the typical citizen might not be familiar with (or familiar with bitcoin for that matter) or have the patience to figure out. 

Everyone is comfortable with fiat currency.  Much fewer people are comfortable using an alternative like bitcoin, which carries an extremely high volatility risk, not to mention network fees that can be costly and the fact that you really have to know how to get it and use it and keep it secure, which might frustrate some folks who are in the midst of an economic crisis.

This topic has been discussed quite a few times over the years, btw.

I sometime ago learnt of the Argentine president trying to adopt the dollar as a currency for Argentina following the recent economic situation the country is facing and this thought of making the economy better has seen several new policies made to reform the Argentine Central Bank operations, just as the old policies were abandoned citing them as outdated and a tool that is exploited by those in power to their gains.
Corruption is mainly responsible for the Argentine situation and although the president hinted on adopting cryptocurrency, I doubt even BRICS or dollar adoption would help the country just yet, until the reforms is well implemented and accepted.

Yes indeed it’s a shame to have not invested during that time for those who maybe found about bitcoin late or was just simply not ready and equipped with the money and knowledge however you should not be discouraged and still should keep investing.

Bitcoin still has plenty of room to grow still so even if you invest now I ak not hesitant to say that you’d still find some good profits.

The question is whether the hyperinflation is caused by some correctable factors which bitcoin can help in or not?

Bitcoin will not always solve hyperinflation, the condition of El Salvador should not be used to draw conclusions, South American countries are well known with inflation, bad living conditions and poverty that have sustained due to corruption, governments and many more reasons.

If they do adopt bitcoin, they should have a roadmap of how to solve the problem using bitcoin, which most governments would fail at.

He may still be on the path to doing that. In fact the recent crashes of Peso could be the initial steps to replacing Peso with Dollar. Think about it, the Argentinian government  doesn't have enough dollar for the whole country. They also can't print dollar (US can) to cover the deficit.
But when they want to swap Peso for Dollar for each citizen, it is easier to swap every 1000 or 10000 Peso for 1 Dollar than it is to swap 40 Peso for 1 dollar. So they crash Peso...

Definitely a good enough reason to adapt bitcoin. I know that when people think of hyperinflation they think about Zimbabwe, like going from a few dollars to trillions, that is definitely a huge problem and definitely a mistake they did, they are trying their best to recover to be fair, not really good but at least not as bad as fifteen years ago. In the end, I believe that we are going to end up with something that will do better, and that means we are going to see the situation change eventually.

What I believe we will have is lower, something like 50% is still hyperinflation and we have that in a few countries, and if all the people in those countries start saving in bitcoin instead of their own currency, we will do quite well.

That's correct. How can Bitcoin be beneficial against hyperinflation, and how can it be implemented in our daily lives to tackle that? I personally don't see how; perhaps it could work as an individual, but not nationwide. El Salvador's Bitcoin adoption wasn't really a huge success either, at least in terms of adoption by the public. Has the government earned money through its investments? Probably, especially with current prices, which may fund the public sector, such as schools, hospitals, and general infrastructure. We should also note that El Salvador managed to do exactly what you mentioned: tackle corruption and gang wars, which are ruining living conditions and the country's economy, and this is where most countries facing hyperinflation suffer.

I think the main reason on why we broke the records this year, is not because of the Hyperinflation but it is because of the Bitcoin halving. I also think that Hyperinflation has nothing to do with the acceptance of Bitcoin as an ETF. The proposal for it is already there ever since but it only got cancelled a lot of times.

The long wait is finally over though. Bitcoin is now more popular and I admit that because of Bitcoin, my understanding about money got wider like I now know what is inflation and its effects, and how can we combat it. I also found out that Bitcoin can be a great solution to it. I think many who got involved in Bitcoin are also like this.

you're saying he intentionally did this. it's not so bad of a plan after all it's going to happen anyway. it simply made them ahead of their time.

so they are still going to be using their Peso and it will still be advantageous for someone from Central and South America who works in US soil. they all will be living great if they send their skilled worker to US and the country will run heavily by remittance. Darien Gap is the key!

It is the same with Venezuela.

For those countries, they need a strong leader and citizens should cooperate with the initiative of the government. But if the government is corrupt, citizens won't be able to help to change the situation.

A single digit of inflation is already hurting and going with 50%, that's certainly a lot and hyperinflation. That's why many of their people are doing things to survive and one of it is getting involved into bitcoin and other cryptos to earn.

People of those nations? Yes, definitely. Governments of those nations? Absolutely not. We have seen nations like Turkey and Argentina who had 100%+ inflation yearly, back to back years, for a while, and governments not only did not turn to crypto to figure out a way, but they nearly banned it, thankfully they didn't but it was close, instead they tax the profits you make highly so that they could fix their own mistakes.

All in all I believe that we should consider what we can do with this, and that should not be an issue all that much, we could probably do better. I think it's clear that the world needs a lot more crypto adoption so that we could live a better life, but unfortunately most of them do not go down that route, I think governments just fear it.

That would hurt Argentina itself a lot more. After all you are talking about work force being "exported"! That would create a deficit domestically. Production lines would die and that would kill the economy even more.
In the long run the migration of the younger generation would have even further negative consequences on the society and the economy both.

Maps for gold reserves, inflation, and debt clock by countries.
https://wisevoter.com/country-rankings/inflation-by-country/
https://wisevoter.com/country-rankings/gold-reserves-by-country/#map
https://www.usdebtclock.org/world-debt-clock.html

Precious metals like gold and silver can be used as storage of assets but people especially not the rich will not prefer these ones as their means of daily spending. Because if they want to buy a cup of coffee or even things with higher cost, they will have to sell gold or silver. It is firstly inconvenient and secondly it can cause them problems with tax. Governments can tax their sales on gold or silver, it's painful for the poor.

Less issue with tax when people do their spending in fiat currency and in cash method.

Argentina is at top of the World Debt Clock list even their Economic size is not too big.
https://www.usdebtclock.org/world-debt-clock.html

The truth is that cryptocurrency are viewed as high volatile in some regions of the world and they hesitate to apply the necessary actions that'll interrelate with the severe instability of their country.Whereas,some citizens consider bitcoin as a safe haven for them and the right tool to secure a safe adventure.

Unstable hyperinflation disrupts the value of people's savings and undermine economic activities.One of the claims from Bitcoin maximalists is that Bitcoin will be a hedge against inflation.The key point here is that while some HYP may last many years,its potentially a good hedge against that but that doesn’t make it a good investment at the time of such emergence.
Emerging unfavorable markets are adopting are causing people to adopt cryptocurrencies at a rapid pace.

Although true, it's merely a a matter efficiency and incentivization. Those young workers, if they decide not to be "exported" and earn Dollars, would continue to either be non-productive or under-paid. It would be better for them to migrate, be more productive, and remit U.S. Dollar back to their country. I believe that model is already in use by some financially-challenged nations. It helps with the supply of their country's foreign reserves.

Yes ,I agree. Cryptocurrency is very  very beneficial for the teenagers and people should invest in cryptocurrency for the long term and also for the short term. The future of cryptocurrency is bright than stock market and any other business. If one research the whole project and he calculate the all facts and  figures and he research the company which is handling the project,he can get success by investing in cryptocurrency but if any person enters in cryptocurrency and at the start he did not get the knowledge of cryptocurrency and he only surrounded by greed  he will lose all the money investing in this. Recently I see the post where man written that he lose  thousands of dollars in cryptocurrency on the advice of his friend . Without knowledge cryptocurrency is dangerous and with knowledge cryptocurrency is king.

That would not help the country and the people left in it though. After all you need a population, specially young generation, to handle different jobs in your own country. If the majority of them are migrating, a lot of things could halt domestically.

It could even lead to more inflation. It's a simple matter of supply and demand.
Take truck drivers for example. If majority of them migrate for a better pay, locally there will be a deficit and the supply chain will be disrupted. The remaining drivers would demand a much higher paycheck to deliver goods like groceries to the grocery stores. So the price of what the end user has to pay for skyrockets too.
We saw something similar to this (supply chain disruption due to lack of truck drivers) in UK after Brexit.

In such a scenario it won't matter how much foreign reserve the government owns...

But it still wouldn't help their country if they stay at home and be unproductive or under-productive. Plus if they don't get paid enough in form of salaries for the labor, then their country probably has too much supply of cheap labor, no? It's better to have those people go through a specialized training program, then be "exported" to a developed nation to become "earners" of U.S. Dollars or Euros that could sent back to their countries.

my country is one example of this. According to the data, our overseas workers contribute cash remittances of up to US$33.5 billion, which is 8.5 percent of the country's GDP.  we travel to every corner of the world, especially in the US. that's why even if USD crashes up, the remittances will still be one of the biggest economic contributors.

Melei may not look like a competent president but he is an economist afaik. if US is adopting BTC, why shouldn't he not do the same?

I do not hope for that lol.

I am hoping that countries allow bitcoin adoption even without their country going into a whole crisis. I don’t want to have to suffer first before being helped. If they only decide last minute that bitcoin could help with hyperinflation, too much damage would have been made and they would have a much harder time to try and fix their economic problems.

The hope for bitcoiners is like that, but what about the government, of course it won't be that easy to legalize bitcoin, even though we have a good idea, but we don't have the power for the country to adjust to what we think. Bitcoin adoption can control the hyper inflation that is currently occurring, because currently the value of Bitcoin can be said to have increased more than inflation, even many times

this will not be good actually. the idea is to just adopt BTC not crash the government and ruin its financial system. because not everyone in the country knows Bitcoin and has Bitcoin. the fiat currency has to still be working and will work side by side with BTC otherwise there will be no basis for BTC's price.

inflation may rise but people with BTC in their wallets will have the advantage and so gradually the adoption will take place as government also supports its existence.

I feel like El Salvador brought to peoples the idea of how governments look at crypto change a bit, because they are quite good at looking towards this situation and that did not end up well for any other nation. Sure they may have made it legal tender, and maybe a few more nations in the future may make it legal tender but these are smaller nations.

I mean we are talking about nations who can put all the money they afford and it is still less than some rich guy at wall street making an investment. We have seen ETF world put tens of times more than what that one nation could, so a small nation making it legal tender means nothing. People however will keep on investing because they think it will be good for them.

But that's the truth, though, isn't it? Don't you remember the backlash El Salvador received when Bitcoin crashed below $20,000? They had bought at a significantly higher price, and the whole nation was practically in debt due to its Bitcoin acquisition. It could have had detrimental effects on the government and in the country as well, as they could have gone bankrupt, and it would shut down any further discussions about Bitcoin becoming legal tender in any other country, as El Salvador would be a prime example of failure for cryptocurrencies. Fortunately, none of these happened, and I'm guessing their economy has seen a boost due to the current price increase, but its volatile nature can be both a blessing and a curse.

Probably that could be a part of the solution, I mean look at the core inflation rate of El Salvador, although they're experiencing an increase in the recent months, they were able to keep it low for 15 months so it's probably one of the many solution that could help but the other problem is that there's not a lot of people that are using bitcoin in El Salvador recently so there could be other factors involved in the prevention of hyperinflation, maybe even trying to limit the printing of money and at the same time make it a priority that the country is paying it's debts, that way you can be sure that you're slowly making it easier for the taxpayers as time goes by, maybe doing a little smart budgeting on the funds for the whole year would also work wonders.

OK, that's actually quite impressive. I didn't know that skilled labor could be a massive "export" for a country. 👍


Although Bitcoin and crypto has become a political issue in the United States and that it could be making its defining moment under the spotlight, the U.S. is NOT adopting Bitcoin. Yet. But I believe when one entity adopts it to break down the political stronghold of another entity, the other entity will need to adopt it as well.

Yeah, well when the situation in a country gets worse (specially with an incompetent government) the society is left with only bad options that they have to choose from. Whatever they choose has different negative consequences. There is no good option here except if they get a better government (like what we saw in El Salvador) that tries hard to solve the domestic issues at the root and improve everything in the country so that people start having good options to choose from.

Remember that Bukele didn't improve his country by adopting bitcoin alone. He did a million different things.

I do agree that bitcoin will grow both in price and adoption as well, because the more people joins the higher the price will be and the more people will want to use it instead. I mean when Fiat currencies suck, people move to bitcoin and other crypto, even if it is just stablecoin. That means that we are going to see more people both buy it, but also they will want to spend/earn that as well which means adoption.

I personally hope that we can see a lot better results and greater returns with time, that has to be the most important part. I believe that we can get better with time. We just need to end up with a logical time shift, we can't have it from today until tomorrow, it will take longer than that and will slowly grow.

Yeah, waiting until the collapse of the existing economic system to adapt bitcoin is not making any sense to me as well. If those people are aware of bitcoin and its core purposes then switching to bitcoin will benefit them for sure. At least holding 20- 40% assets in bitcoin will help them on the event of undesirable things to their own economy.

Do you know we are the government, everybody that is a citizen is a government and if indeed they practice democracy that says government of the people, by the people and for the people. So let's say the fact and the fact is that Bitcoin can't be adopted as a currency. The volatility kills the economics of fiat and for this reason, it wouldn't work. Fiat might be a garbage but the fact that it's what government want, Bitcoin is out of game for them, maybe individuality can adopt but not on the government level.

The government prefer gold and other financial instruments for it's people, you can see the battle Bitcoin has faced and the ones it's facing currently, there is developments with ETF but yiu can see it's written all over their face, they are not happy with but because individuals want it but fear the concept of not holding the main Bitcoin, they opted for that at discretion and risk but for government, forget it because it wouldn't happen.

As far as I am concerned many countries economy is getting worse due to inflation they are looking for alternative ways to improve the economy of the country so maybe adoption can reduce the pressure on the economy of each country. But the government will not accept these currencies so easily because they are outside the government's control and fiat currency may become worthless. The government will usually solve the problem within its powers.

But is the option of migrating for work actually "bad" for everyone concerned though? For the individual's personal productivity and self-fulfillment, it's positive. For its impact on society from the country he/she is from, it's positive because of U.S. Dollar remittances. For the country where he/she is working in, it's also positive because he/she is providing a service/producing something.

Their economy has improved significantly, but that is because Nayib Bukele has found a way to improve social security and boost the economy in many different ways, they do not rely entirely on bitcoin investment to improve the national economy. I remember Nayib Bukele once said they only used a small part of the national budget to invest in bitcoin and if it failed, it wouldn't have a big impact on them.

Bitcoin is just a volatile asset, a financial market, it's funny that some people think that if they accept bitcoin then inflation will go away. Or even if bitcoin becomes a currency, how will inflation disappear if people do not work and do not increase their income?

Instead of fixing the country economic problems, he instead looks for reasons to avoid them by saying he wants to adopt Bitcoin. There is nothing wrong with that, but a country is risking the entire fate of its citizens. Not all citizens will be friendly in accepting Bitcoin as a second option, but it is necessary to reconsider whether the initial problem of inflation in the country was the result of the greed of the government which was unable to improve its financial system. If from the start this inflation leads to the financial sector, then the Argentine government must not abdicate its responsibility. Solve the economic problems first and the mounting debt, then after that start the infrastructure by updating the financial system.

People that say that probably do not have an idea about how the economy works or they are too optimistic about bitcoin and what it can do, adopting bitcoin could bring foreign investment to that country and as such improve its economic situation, but it is not going to be enough, even in a country that is relatively small like El Salvador, so a government looking to improve its economy cannot just focus on bitcoin, and instead it needs to try to focus on the entire economy and solve whatever issues it may be slowing it down.

And they don't see adopting Bitcoin as one of the big impact contributor to their economy and that's why, if it's about adoption. It's either they don't care and let their citizens adopt it without having legal implications. Many seem to be very welcoming to this kind of adoption and only few countries aren't willing to adopt and accept Bitcoin as a store of value and a new type of currency. Otherwise, the rest are just neutral.

They have no control on it and that's why the battle against centralization and decentralization have begun when Bitcoin was made by Satoshi. But I don't think that even if they adopt BTC, there's no way that their fiat will become worthless.

When they already have a banknote that says 10 Trillion Pesos, that's the time they will realize their fiat is worthless. If it happened in Germany or Zimbabwe, it's not going to be surprising if it also happens to any country today that keeps printing because they have no Plan B.

There has to be a plan B, for the government's fallback. You know when they saw the US government collecting tax from crypto and seizing BTC, it should be understood by now that the government saw BTC to be valuable to which other country should also see it this way.

You're right and I stand to be corrected. But they're not going to rely on Bitcoin even that happens to their own fiat because they'll rely on another fiat just like other counties that have adopted USD as their currency aside from their hyperinflated local currency.

I don't think that's how they see it. When the US government does all of those seizing of BTC, the context there was that they've been seized due to illegal activities and that's bad money in the impression of the government so they have to actually take it. And that's why I don't think those countries that are into hyperinflation will see it that there's something valuable with it. What they'll still do is to find an alternate currency where their economy could rely on. I'm a pro BTC but this is what happens in most countries that are experiencing hyperinflation but I'm hoping that someday that aside from El Salvador, there will be more countries to legalize Bitcoin as their legal tender.

A country with a developed economy needs to have good domestic and foreign policies, attract a lot of capital and create many jobs for people...Besides, national security also needs to be prioritized as in the case of El Salvador, the country with the highest crime rate in the world even though it is only a small country. Developing a country's economy has never been easy but people seem ignorant and naive to think that simply adopting bitcoin can improve a country's economy.

Let's also not forget that bitcoin is not the only anti-inflation asset in existence, gold is also a pretty good anti-inflation asset. If stopping inflation were just about using an asset with a limited supply, governments would have done it long ago without the help of bitcoin.

Why is it that all of a sudden replies are anti-Bitcoin?  El Salvador already has paid its debts from IMF. Ony a few countries did that. I am not sure if it's because of BTC but Bukele definitely made the right choice after all, he lifted the country's economy by getting more investors in the country because of the Bitcoin bonds.

He made the country an easy place to go for Bitcoiners. Bitcoiners can even stay there and become a citizen with an easy to achieve conditions.

I'm not against El Salvador using bitcoin as legal tender, what I want is more evidence that bitcoin is a key factor in improving their economy. Because to my knowledge, I don't see bitcoin being created with a mission or being useful in helping a country's economy avoid hyperinflation whether it serves as a currency or an investment. 
If you also don't have evidence that bitcoin has helped their country pay off its debt, or that it's because Bukele's policies have helped their economy revive, you can't say I'm against bitcoin. As I said, it is not simple for a country to have a developed economy, and I also do not believe that their national economy has improved solely because of the adoption of bitcoin. What I want to say is that we don't need to exaggerate about bitcoin, I don't see any benefit in us exaggerating about it.

It is bad in general even though it may look like it has some financial benefits at first look.

After all you are talking about "migration" which is to give up all you know, your culture, your family, your home, ... and go to another country with a different (and in this case corrupt) culture, environment,... in a place where 45 humans perished per day in the first 5 months of 2024 due to gun violence (6782 in total (https://www.gunviolencearchive.org/))! This is specifically bad for the individual. This is even worse when that individual is treated as a foreigner, an immigrant, and a lower class by other immigrants calling themselves "Americans" just because they got off the boat sooner than them :)

It is bad domestically as well. As I said when the work force migrates, a deficiency is created in the country. To put simply there won't be anyone left to do the jobs, from small jobs like garbagemen all the way to specialists (engineers, doctors, ...).

The issue with bitcoin is that it is very unstable to be used as a currency. Remember Nov 2021, we peaked at around $70K and 1 year later we bottomed at $16K. These types of moves don’t make it an ideal asset to be used as a currency hedge against inflation.

You actually would be better off just using the crypto stablecoins because those are always pegged to $1. However you might as well just use US dollar fiat instead.

They need to overall their entire government and fix their currency. Most likely the currency will be replaced by a new currency and hopefully the new one will holds its value.

While understanding you clearly, bitcoin is actually a currency in a digital form but risky to be hold as the fiats maybe implied due to cryptos volatility.
It's more considered of asset holding than the hope of currency with the mode of having it for exchange of commodities.
Instead, convert the value of your desired bitcoin to fiat due to stability probably that will take you in a short or long run while you've the rest on hold for assets.

Hyperinflation is a severe form of inflation that causes a country's currency to rapidly lose value. Bitcoin can be attractive during hyperinflation because it has a limited supply & is not subject to government control. Adopting Bitcoin as a national currency requires careful consideration of regulations, tech & public acceptance. We’ve already seen El Salvador doing well after adopting Bitcoin as legal tender & buying themselves, more will inevitably follow.

If all countries get into a state of hyperinflation, they will be forced to abandon their currencies as well. But most probably they will take the USD as their currency as it is safer which is why El Salvador also took USD as their currency while also declaring BTC as legal tender.

This has to take place together, it's easier for people to adopt when USD is their base currency. Adopting BTC will be the challenging part that's why their government giveaway $30 in BTC to those who install their Bitcoin wallet. I think he was hoping that it could kickstart the adoption.

I believe very few countries will adopt Bitcoin as legal tender, even if there is hyper inflation.

Let's take for example the Naira which is the currency of Nigeria, which has started to experience hyper inflation over the past year. The citizens of Nigeria have been flocking to Bitcoin as an alternative to hold their wealth, but the Nigerian government has cracked down on this. If anything, losing control of their own monetary system will lead them to do crazy things, rather than adopt cryptocurrencies. For example, they have held a Binance executive as a scapegoat in a prison cell for over 3 months blaming him (despite being an innocent middle manager), because the Naira has been devalued by Nigerian citizens using Binance to exchange their currency.

More details:
(1) https://www.nytimes.com/2024/05/07/technology/binance-nigeria-tigran-gambaryan.html
(2) https://www.binance.com/en/blog/leadership/from-richard-teng-binance-ceo-tigran-gambaryan-is-innocent-and-must-be-released-3634612934164622056?lang=en

Global currency reset seems crazy, but it's not as easy as everyone buying USD. Although the dollar has been dominant for a time, it is not invincible. Due to money printing craziness, hyperinflation may soon hit the dollar

Salvador adopting Bitcoin? Quite bold, guy. They realize a decentralized currency like Bitcoin might revolutionize the world in a debt-ridden planet. Bitcoin is a mindfuck for some, but the potential is immense. Not only is the $30 giveaway important, but it also gives people power with a currency that bigwigs can't change. The USD may appear safe, but don't overlook Bitcoin. Long game, but it could be the biggest financial shakeup ever

I agree with you . Dollar look like safe but USA banks prints 20 percent Dollars of the circulated dollars , the price of dollar will go down and people will prefer crypto currency because the future of cryptocurrency is very bright and after the 20 to 30 years , cryptocurrency will be use to pay bills,to pay for accessories and to get the food for living. In that era , cryptocurrency has been used as a investment and only intelligent people invested in this because to invest in this ,you should have knowledge how to buy the Bitcoin and how to convert the Bitcoin into dollars and how to convert into your own currency. In future,next generation will be more advance than us and they will use cryptocurrency as currency and they will buy living things by Bitcoin.

But if a person stays and he/she remains unproductive, and merely a burden to society, then wouldn't it be better for him/her to take the opportunity to work in another country and be incentivized for it? It would stupid to think that it would be the wrong decision, no? Plus of those people could send foreign currencies that could help with their counties' foreign reserves, then absolutely why not?

If Bitcoin is made legal tender, it will be better. There might be possibilities that some countries may come to reconsider it. there are few countries that have already made it legal tender.

Countries like EL-salvador who was the first country in the world to make it legal tender in June 2021, follow by the central African republic in April 2022.
Most developed countries that claim to be the super power in the world are still using Bitcoin for buying and selling. Example of these countries are USA, UK CANADA. infact, USA government is known to have held the largest Bitcoin reserve at the time of writing. with over 210 000 Bitcoin. But still, there are other countries that have even banned it's uses completely CHINA and SAUDI ARABIA are included in these countries that have made the use of Bitcoin illegal.

Bitcoin is still at it's infant stage, it has not matured fully. So it may sound too early to say something deep about countries adopting it or not, but there are great possibilities that Bitcoin might be reconsidered as a legal tender but the main problem is, it has no uniform international laws that regulates it. But despite with that, since there are using it in most of the countries for buying and selling, and their transaction is successfully moving on, then if they really care about the well being of their citizens, the United Nations body will just come together and discuss it.

Well, the countries affected by inflation will prefer the USD since its value will still be higher if they convert USD to their local currency. Using the USD will still make sense after all they will rely on the most traded currency. It may not be the cash but digital USD since we are going digital anyway. but it is also easier to adopt Bitcoin when it's all digital.

most people don't get that politicians don't suffer the same ills their people feel.
Inflation for a state is great, less value when paying wages. 

Very few countries in the world ever have or likely ever will receive hyper inflation. The current period that most of the countries in the world are facing is just low to medium inflation, that has identifiable sources - the war in Ukraine, the Suez canal houthi issue, the remnants of supply chain issues in covid and the peaking of oil prices during middle east conflicts. These all increase food prices and oil goes into so many days to day items, not just the obvious fuel that most people might associate to it. Hyper inflation is a unique scenario however, which is often caused by a complete lack of faith in the government that is often wielding direct control over monetary policy and badly at that.

What is considered hyperinflation is when it exceeds 50%. There have been many countries who had undergone hyperinflation but quite a few have already recovered meanwhile one country remains to have the worst inflation for probably more than a decade or so by now,

Venezuela (https://worldpopulationreview.com/country-rankings/inflation-rate-by-country) has an inflation rate of 283%, followed by Lebanon with 212% and Argentina in third place with 161%. The next country on the list is below 100% even if not below 50%.
Inflation not exceeding 2% is actually quite normal and, in some cases, even encouraged.

Turkey is still on its highest, more 65% of inflation iirc. they were looking for ways to make money so they charge tarriff of about 40% on Chinese EVs as well. couldn't also see this country adopting BTC but seeing countries like them are just following the what EU is doing so it will not matter for them even when they see crypto been adopted elsewhere.

if EU and US is regulating crypto, its still considered adoption as it means its  legal to use.

Politicians are slightly different from ordinary people when it comes to dealing with anything, including dealing with inflation. Because ordinary people will definitely feel more suffering when they have to face problems such as inflation or other things in their already deprived lives, while politicians and government officials only feel a little suffering which can be overcome directly by themselves without feeling any more burden. Although their general task is to be able to ensure that the country does not suffer due to inflation.

They will look to do anything, any sort of damage control, that saves their monetary system. Failing that, they will do political stunts like the one you just mentioned to try to keep the fact that their monetary system is failing as a secret to their population. For another example, look at Turkey. They have been experiencing some really bad hyperinflation but they do not acknowledge Bitcoin at all, in fact going as far to ban bitcoin payments in the country.

Such inflation is affecting many country right now, but BTC and crypto still remain banned in their countries and the government don't want to give decentralized currency a try if it will boost their economy or not, but they just feel it will worst their economy more which is not true.

But the youths that know BTC business very well, know that if the government can adopt BTC in this hyperinflation in the country, it will surely solve so many things from the  people and government economy, and it will make the government to change their minds to make BTC legal tender in the country.

I know that, a time will come that will open the eyes of the leaders to save their economy not to collapse by adopting BTC in the country to delete the hyperinflation.