Bitcoin Forum

Bitcoin has many things to do with the current economic situations in different countries,some of these what bitcoin has done to the economic of many countries are -
 first of all it provide employment and source of income thereby regulating the unemployment rate and increasing the efficiency of the economy.
 secondly bitcoin could have hep many countries if they would have acquire some and make it a legal tender years ago.
 thirdly it reduces crime rate in some countries because the reason for some of these crime is unemployment.
 And lastly bitcoin rescues many families and individuals get rid of poverty thereby increasing the quality of life ,helping businesses,and helping the economy in different ways.
Bitcoin has really help the economy , this is just a nutshell of some notable works bitcoin has done to economy of many countries so i don't really see the reason why the government of some countries failed to make it a legal tender till now even after seeing what it has done to their economy.

Why not move this thread to economy.

Bitcoin has many impacts on the economy and human life as a whole, you can get more to back this up from how it adoption rate have always been increasing form day to day, bitcoin provides the Financial solution to the challenges we face with the use of centralized system and currencies, we could all see that having an alternative currency to fiat will reduce the heating pressure on lives in other to find the economy and financial situation the most suitable one they have always wanted, by starting with the achievement of tier privacy in finances.

I think from today's (2024) point of view you may overestimating Bitcoin's influence. For the future, I agree somewhat, the potential is there.

I guess this happened mostly in countries like Venezuela, where the local currency was so weak that Bitcoin as an alternative provided more stability for entrepreneurs in some cases. In other countries, it may have helped to create businesses in the crypto sector.

However, I think not even in Venezuela Bitcoin is/was important enough to really "regulate the unemployment rate". We'd be talking about perhaps 10k or 20k people involved in the crypto sector per country, and maybe a similar number of freelancers which would get crypto-related jobs they wouldn't have got if the payment was in USD.

So this is for now more of a "dream for the future", like the idea of "balancing salaries" I've exposed in my thread here (https://bitcointalk.org/index.php?topic=5506286.new#new).

A pro-Bitcoin policy like El Salvador's can "help" a country in two ways:

1) providing good conditions for a fintech sector dealing with Bitcoin and crypto,
2) as a part of the country's reserves, if the Bitcoin price increases.

But I believe in the current world of 2024 the first point only provides significant benefits for small countries, like El Salvador, because only if the economy is relatively small a strong crypto sector can make really a difference for the local economy. Again, this may change in the future, so a pro-Bitcoin policy is never a bad idea.

Of course if a country bought a substantial amount of Bitcoin in 2013 or so it could be rich now. El Salvador at least made about 30-50% profit for now.

I think this, agalin, may have happened in very few countries like Venezuela with really extreme economic problems. But for other countries, this is again currently an overestimation of Bitcoin's influence, see above in my comment about its influence on unemployment.

This is a common misconception.

You don't need for Bitcoin to be "legal tender" for a pro-Bitcoin policy. "Legal tender" does not mean that it's "legal" to use it, it's that merchants have to accept it as a payment method.

I think it's better if people (merchants) can decide for themselves if they want to use Bitcoin or not. El Salvador's "legal tender" policy has for example led to many people without technical understanding to use the Chivo wallet which was affected by a major hack earlier this year.

In general for what you write to happen, Bitcoin must be used much more as a currency, not only as store of value.

I don't think it's true because people who commit crimes because they don't have employment are those who have no knowledge or even money to get into Bitcoin or trading in general, they are not the kind of people who could invest money in Bitcoin or trading and earn money from it.


Wrong again. Bitcoin isn't a magic wind that you move and money comes out of it, to have access to Bitcoin or to tools and platforms where one can trade or invest and earn money require one to have necessary resources. Someone with no money and resources such as good devices or internet connection can barely have access to things such as Bitcoin or an exchange. So there is no way a poor person having no money or necessary resources can earn money using Bitcoin.

Bitcoin has not yet been adopted enough that it has a large-scale effect over any country’s economy. As small as its impact might be right now, if we see more initiatives similar to what has been going on in El Salvador then it could have massive benefits in the future. Elementary school kids are learning about Bitcoin and many of them could go on to become entrepreneurs. Bitcoin education has to be coupled with other measures dealing with crime reduction and fostering innovation so that people have options besides becoming gang members.

Even though Bitcoin has struggled to gain adoption, I believe El Salvador is doing the right things that will pay off in the long term. Other countries with high poverty and crime should emulate the good things that they have done.

Bitcoin has many things to do with Bitcoin communities but it has NOTHING to do with economic situations in many countries. These national economic problems belong to governments that are responsible to solve problems in their countries under their administration.

Bitcoin is not a source of job, not a job bank, not free ATM for everyone to come, get jobs and withdraw money.

The national economy and national treasury are big and Bitcoin can not help. Governments if put all national treasuries to Bitcoin, they will take very high risk and I am sure citizens will not support the idea.

You as a single investor can invest your money in Bitcoin, get profit from it or lose money with it, but effect is on you only. But if something went wrong with a national treasury, that is very terrible.

Maybe in your imagination or illusion.

Bitcoin is not a part of financial, poverty rescue team. You can work, learn to get better job, work with better jobs and get better salary. Then invest your money in Bitcoin, hold it long term to get profit and change your life. But Bitcoin itself can not rescue anyone if the person does not do anything to change himself, knowledge, work, salary, nothing.

Legal tender forces merchants in that nation to mandatory accept bitcoin from customers but are merchants happy with this law enforcement?

I guess most of merchants are not happy with this enforcement in El Salvador because some articles said that they were not happy to receive bitcoin, and lack of plan to hold or convert bitcoin to fiat, then price corrections, bear market affect their business fund. It does not help Bitcoin adoption in a sustainable way with simple thinking that if you have Bitcoin legal tender, you have all you need.

Yes that is right Bitcoin is making big difference in economy and people lives. More and more people are using it which shows it is becoming more important. Bitcoin helps solve problems with traditional money and banks. It gives people another option which can reduce financial stress and give them more control over their money. Bitcoin also lets people keep their financial transactions private which is basic right. As Bitcoin keeps growing I think it can bring positive change to how we think about and use money.

Bitcoin doesn't provide employment and source of income, can you show me which a trusted faucet site where I can claim at least 0.0001 BTC per hour? I consider earning $5 is already enough to live.

No one can know if countries where Bitcoin is banned will not "secretly" accumulate Bitcoin, making it a legal tender doesn't necessary mean people will use Bitcoin for paying bills and any other small transactions.

Lol no, there are many crimes happened and the criminals use cryptocurrency to receive the money. Crime happens due to unemployment and it also happen due to greediness.

Bitcoin doesn't help anything, it depends on "ourselves".

If a company is seeking for senior programmer with $200K salary and they can only pay in USDT, but another company is also seeking for senior programmer with $10K salary and they paid in BTC.

If I'm a senior programmer, I would choose the first one, I can convert my USDT to BTC in few second.

Now the question is, do these poor people have a programming skill and have experience?

I disagree specially for bigger economies. For starters bitcoin is still too small and its adoption is too low to have a strong impact on the economy.
Also you have to make a distinction between income and employment. One may start trading bitcoin or invest in bitcoin and make a lot of profit (which could be called income too) but employment requires jobs, bitcoin related ones. And there aren't that many available yet because there aren't that many bitcoin related businesses created yet to be able to address the employment issue. For example currently there are about 3 million jobless people in Spain, while there aren't even 3 million bitcoin related jobs worldwide to be able to cover that in one country alone.

I agree that Bitcoin has helped a lot but I think has done so not in major economies, where I live now it has helped a lot during covid times as people who had saved or used it as a store of value was the people that did not felt that big the stopping of all activities and the government support was ridiculous giving out very small monthly amounts to support the families, so in extreme cases like covid when everything was halted it can help a lot. Best use case for me is for Bitcoin to be used as store of value.

How come Bitcoin provides employment to people while Bitcoin is not like a job. If they want to earn Bitcoin, they must search a job that paid them in Bitcoin or fiat. If they can earn Bitcoin from their job, that is because they work in that job and not because Bitcoin. Bitcoin is just almost like currency which you can accept. The potential of Bitcoin to be used as legal tender still be there but that will need to wait for the acceptance from every government so we must wait for more.

Crime is not related to Bitcoin because if they are unemployment and doesn't have a source of income, they may commit a crime because they want to have money to fills their daily needs. If they can have a job that can give them source of income, they may not risks themselves to commit a crime.

If a family want to use Bitcoin as their investment, they will have a chance to make a profit in the future. That is why they need to have money so they can invest in Bitcoin to prepare their future.

OP, what you wrote sounds like the empty promises of a politician.

How exactly is Bitcoin increasing unemployment on a more significant scale?
If a programmer moved from CSS programming to blockchain, it is not a reduction of unemployment, but retraining.
On what basis did you conclude that a large number of unemployed in a country will find a job because of Bitcoin?

*I say a large number because for this to be considered a serious factor, it must be in a higher percentage so that it is not considered an isolated cases

And this is quite confusing and general.
It is now clear to everyone that if they had bought Bitcoin 10 years ago, they would be rich today. A good part of poor countries (even poor individuals) do not have the luxury of investing today and waiting 10+ years to get new wealth. Certainly, poor countries need new and fresh profits the most, much more than rich

There is nothing wrong with you and some bitcoin investors wanting bitcoin to become something important in the world or play a role in the national or world economy. But we also have to be realistic and not be too delusional: we need to accept the fact that bitcoin has not had any significant impact or contribution to the economy of any country. It's too early to tell because bitcoin is still too small, not really popular, and not as widely used as we imagine.

How can Bitcoin create jobs, reduce unemployment and reduce crime rates as a currency or a risky investment? Stop exaggerating everything about bitcoin, Satoshi didn't create bitcoin to be a god to save the world.

Bitcoin market cap is smaller than stock market cap and caps of other markets too. Its capitalization size in a national economy is very small and even I believe Bitcoin will continue to grow in adoption, value and price in future, it will not come to a time with great impact on national economy and global economy.

I very agree with you on differentiation between income and employment and many people misunderstood these terms.

There are jobs in Bitcoin and cryptocurrency industry but compares to traditional job markets, probably it is a smaller job market similarly to aforementioned comparison between Bitcoin market and traditional markets as well as national or global economy size.

Cryptocurrency job list (https://bitcointalk.org/index.php?topic=5457166.0) can help someone to find remote job in Bitcoin and cryptocurrency field.

Bitcoin haven't improve any economy yet because it doesn't generate income just like that, what will can say about the impact of bitcoin since it existence is that it has been a good benefit to individuals as a store of value and also as an opportunity for people to invest and trade to obtain profit.

People should understand that bitcoin is here right now just to add value to the money we already have individually.   If the government decide to adopt bitcoin as a legal tender their is no doubt about the benefits it is going to yield but I doubt if it can be something that the economy can depend on. For me I think the main essence of bitcoin is just to assist the traditional currency and to help people to be financially stable as they invest in bitcoin.

Bitcoin has certainly a lot of advantages that majority of the people haven’t realized yet. And up to this moment, despite of the lapses of fiat that may lead to its depreciation of value in the next possible years, still people or let’s say the government still prioritize fiat over bitcoin.

Lack of public education about bitcoin could be the most probable reason why these people are closed minded about bitcoin, when we all know that bitcoin could be the best answer to create progress on the country’s economy, most particularly for our individual’s economy.

Bitcoin and the economy complement each other because when a country's spontaneous use of Bitcoin increases, economic development will automatically build. But if Bitcoin is legalized along with the banking system, then spontaneous use of Bitcoin will only increase and the government will get the opportunity for economic development.

OP I don't understand what you mean by Bitcoin has provided employment, you didn't explain how Bitcoin has made such employment, so you can throw more light on that for clarity.
 I will agree with you that bitcoin is a source of income for investors that have made investment over the years and are getting their reward and interest from the investment, but this was not explicitly explained in your  remark as more flesh was needed to be added in your remark for us to understand what you are driving at.

About government making bitcoin their legal tender, don't forget that government of many countries already have existing legal tender that they use, so the acceptance of Bitcoin as a legal tender will come as a gradual process over time, and I hear that there are examples of countries that accept Bitcoin as payment for service made and the rest of it, so I believe is a gradual process.

Bitcoin only affects a few individuals globally and the amount is not as massive as you might imagine, because Bitcoin is mostly used as a transaction or investment, and its adoption is also limited, so let's just think rationally and don't exaggerate the presence of Bitcoin to the point of reducing unemployment rates, crime rates, etc., because that is not proven by concrete data.

Bitcoin alone cannot improve the economic conditions of a country. The best they can do is to make favourable Bitcoin policies and/or invest in Bitcoin. Making policies like legalizing Bitcoin and giving incentives to crypto companies can attract more investors to the company. This can create employment and increase government revenue via taxes.

Just like El Salvador some countries might buy and keep Bitcoin for a long time. They might make some profit if the price rises in the future.

Since I knew more about investing in Bitcoin it is easy for me to detect individuals with little knowledge on it based on how they speak of Bitcoin. Bitcoin is not the solution to economic problems and will never be, it provides an opportunity for people to escape from poverty but it is not without them investing and if you are planning to profit from bitcoins, you need to also plan to invest, and if you are poor, investing is harder. In an economic setting, you need find a way to get money first before you plan to invest.

Please don't put so much pressure and hope on bitcoin. If you are doing this kind of thinking, you should have some data to back your claim up, like how many countries that Bitcoin has helped to reduce their poverty rate, increase their economic growth, help them in paying debt, and do all the positive things that you have outlined above.
 
Bitcoin is doing it best in a way that it can, but seeing Bitcoin as a God that can help pull off countries from the mess that they have gotten themselves into is just out of this world.
 
You need to understand that it takes more than just buying and holding bitcoin or making Bitcoin a legal tender in order to rescue a country from their bad economy; the government needs to put in some hard work and good working policies in order to achieve that.

The only country that Bitcoin has helped their economy are the country that have adopted Bitcoin to be used as the country currency but that isn't the only reason why Bitcoin has helped their economy because they still had to invest in Bitcoin too. The country that accepted Bitcoin had their reasons and the country that haven't invested too have their own reasons. Some country's government are afraid that Bitcoin is going to make them vulnerable to cyber attacks and other attacks by terrorist.

More country are going to be adopting Bitcoin soon as they begin to see that their currency isn't doing well because of inflation, as it keeps on losing value. Bitcoin can only help the economy if it gets used as an investment and not a currency because there's no benefit of Bitcoin to the economy when it gets used for buying and selling of commodity .

Nothing could be further from the truth and it has already been said several times, none of that is possible with bitcoin, at least not in its essential concept of being a p2p and a technology that allows you to protect and have control of your finances, and that is if you so wish, since having "influencer" in everything mentioned depends on other factors that would have to happen...

Bitcoin the only coin made a lot of millionaires who perfectly realized potential of Bitcoin. I can't ignore a lot of people lost from Bitcoin trading, but it's because of not to realized Bitcoin potential. Unless you have enough patience it's hard to get advantage from the Bitcoin. For me Bitcoin helped a lot, I am living a standard life by trading Bitcoin and earning Bitcoin as well. If someone work hard and learn properly about Bitcoin then it's not hard to make money. We just need patience.

I don't think that Bitcoin can help economy of a country if the country is not developed, even the country in which Bitcoin becomes legal tender, there are many countries where Bitcoin is allowed and make it legal but if you look at them not everyone has a Bitcoin, is not every one of them that has a job, bitcoin can help but not everyone that bitcoin can help we all know that bitcoin can not be own if you don't buy it to hold for a future and those who have bitcoin is those who have money and they are capable to buy it.

Talking about those who don't have work, every country has those who don't have work and Bitcoin can not solve the problems, there are still some countries that blame Bitcoin that it is the problem for causing a hard economy in the country. We can't just assume that Bitcoin can help all the country, the country that can develop it is because of the performance of the government, not Bitcoin because if the government does not do its duties some people can not have Bitcoin.

Bitcoin is yet to be ready to be adopted by several country in an on-chain transaction basis.  Imagine if the whole or 30% of the global population is to adopt Bitcoin and doing an on-chain transaction, it would have massive congestion problem and probably this is also the major reason why the Bitcoin adoption is quite conservative.

Anyway, I agree with @OP that if Bitcoin is adopted, it will bring a job demand to the country especially when wealthy people starts integrating Bitcoin in their company or when they decided to put up a company.  In order to use Bitcoin there is a need to make an infrastructure that integrate Bitcoin to a company and that brings a demand for job.


If Bitcoin is to go uptrend in the future, El Salvador sure will benefit from it.  But I hardly hear any news (maybe I am missing something) that national companies in El Salvador is integrating Bitcoin into their system nor the Technology behind Bitcoin is being taking advantage of these companies.

Bitcoin don't really provide employment but if that's the point of view that you're seeing, we see it as well because it helps a lot of people to have some hustle and it being tradable makes someone being occupied by that use for them to make money.

We will never know on how many of them are really acquiring now. We've been hearing from the news that there were little accumulations that are happening but basically, they're not required to make it a legal tender as long it's legal on them.

If there's a statistic that has reduced its crime rate due to Bitcoin, I'd believe.

As an asset or store of value, it did helped a lot of people understand how to deal with poverty and thrive with their personal economies.

In many positive aspects, the presence of Bitcoin as a system has greatly helped facilitate many groups of people. The most obvious is privacy and freedom. The ease of transacting worldwide without involving a third party as well as low costs and a fast process are the first positive aspects of Bitcoin in my opinion.

As a job market and saving families and individuals from poverty, I think this can still be refuted because Bitcoin is only a digital currency system and in terms of price, currently only people who are financially capable can afford it, although it can still be done in a more flexible way.

OP, TBH Bitcoin is not our savior at least currently Bitcoin is not that capable, I love to write words in Bitcoin's dominance, possibilities, and potential but all of that is for the future, currently I'm not sure how Bitcoin helped in nu-employment as it's just a payment mode, Yup there some indirect possibilities which Bitcoin directly influences.

Buddy, Bitcoin as a potential tool can help people to improve their lives but, Honestly, currently, we are not at that scale we need time, and more adoption to reach that limit to help people with their investment amount in Bitcoin to improve their lives I know such kind of comments are already there but according to the Op's claims these are the only replies we can make as there's no any other angle.

I believe the mistake people like OP make is that they are extrapolating individual experience to make the conclusion on a bigger scale (ie. country's economy). It is obvious that individuals can benefit greatly from bitcoin. For example someone from lower class being very poor could have spent like 20 bucks on bitcoin (buying 20BTC) and have a million dollar today! But that is not helping the country's economy, specially since most of such people don't even pay taxes!

Especially now that the value is high, most of the millionaire and billionaire were made during the early adoption of Bitcoin @ early stages. Although with Bitcoin it's never too late but the only clause there is that you definitely and certainly need to understand the importance and virtue of having patience because without patience you can end up getting ahead of yourself make hasty decision that might destroy your investment or Bitcoin holdings.

There is another model of using Bitcoin that works against the economy of the country, most applicable in poor and corrupt governments. Where it is now much easier for corrupt authorities to take and hide money using Bitcoin, instead of the current traditional way via offshore accounts.
I've seen such a scenario.

Your example is excellent that debunks hatred approach and regulation of governments against Bitcoin while they are free to do the same things done by criminals like money laundering.

As human with basic universal human rights and as citizens, we have rights to defend our privacy and Bitcoin helps us to get privacy but governments don't like it and don't want their citizens to maintain privacy in finance.

Why KYC is extremely dangerous – and useless (https://bitcointalk.org/index.php?topic=5221497.0)

Governments try to accuse citizens that using bitcoins for fund transfer means money laundering but how about their same activities. Who will accuse them and will they self-admit their corruption and money laundering?

I want to say, I don't imply any citizen uses Bitcoin blockchain is doing money laundering and the automatic assumption of governments on it, is False.

OP, let's start with you. Tell us how Bitcoin has affected you personally, and your family, and how you managed to get rich by owning Bitcoin. How do you make money by receiving Bitcoin to support your claim about employment?
Likewise, you shouldn't talk about what would have happened if... Russians have a saying: if grandma had balls, she would have been a grandpa. Telling us about what neither you nor anyone else did in the past and what would have happened then is very frivolous.
In short, don't assign Bitcoin the status of a god who solves all the problems in the world. This is not and will not happen, and you should start studying Bitcoin more seriously to draw reasonable conclusions about its benefits.

You are right in some of your statement about Bitcoin but not entirely all the aspect because the first thing you must no is that you cannot be empowered, employed or established through Bitcoin if you do not have the money to startup Bitcoin investment, those who who have been benefiting a little bit from Bitcoin are those who invested, so actually from my own understanding Bitcoin does not reduce unemployment rate but instead it presented a way for people to invest and those who trusted it with there funds were the only ones getting some profits from there investment. In terms of Bitcoin reducing crime in a country I don't really think is possible because human minds are different and even if everything is at there disposal some of them will still choose crime and besides in the case of Bitcoin it involves capital before investing, so how will it reduce the crime of those people who has no money to start? And secondly what are the guarantee that they will be successful after investing on Bitcoin?.

I think Bitcoin could save the economy of countries like Venezuela with high inflation.

It definitely does help a lot of people in a lot of nations, mainly the poor ones as well. Even a small income would be such a big deal for a lot of people and I think it is going to end up with something much better as well, it is going to be something that will take a while. I believe that we are going to see something bigger so investing into it is one part of the discussion but there is also the possibility of working to make money and a lot of people are using that part, I think it's a quite big deal and we could definitely consider this to be something that benefits us.

We should consider this to be something that will get greater results, and if we can't really see that type of change then we are not going to see something bigger or different. The reality is that we can't really consider this to be a great thing for everyone, it's only applicable for people who are in the crypto world and I think it is a good thing and we benefit from it while others don't.

According to me, a person commits crime to earn money in a shorter period of time. He might be making regular investments or earning regularly, but for some of his needs he needs more money, and in order to fulfill this he will commit crime. It’s not appropriate to blame only the uneducated people for the crimes.

Now regarding the OP, then yes, Bitcoins have many benefits, and it has helped a lot. Be it an individual or the whole nation, bitcoins have surely helped to make their cost of living better. By the end of the next bull run, we might see Bitcoins touching new heights, and more achievements will be accomplished by the Bitcoins.

Bitcoin is connected with the real economy only in that part of the money from there was redistributed (invested) in btc.

This sounds like nonsense to me.

How could bitcoin help many countries? You are mistaken in thinking that countries only need to buy bitcoin (like El Salvador) and all economic (and other) problems will be solved.

Bitcoin was created as electronic digital money (payment method), and not as a "savior of countries".

"Official" representatives claim the opposite, that bitcoin is tightly tied to crime, and you say the opposite. :)

The reason for crime is the lack of desire to work and earn money through honest, hard work (and also, the inability to create sources of business income.). Almost like in gambling - the desire to get easy money.

What about the unlucky investors who lost money on incorrect purchases and sales of bitcoin?

I'm sure you have absolutely no idea what you're saying. No offense.:)

We should be able to comprehend the visionary of the top whales in Venezuela, we're talking about country with massive adoption ratio of bitcoin. The country, Venezuela is purely an example of cryptocurrency massive adoption during the period of economic crisis, the economic sector of Venezuela is transforming to be a phase that deals with hyperinflation. We've watched and observed the economic system of bitcoin, we've gathered enough evidence to lay our high hopes on bitcoin. It's saved most of the outstanding traders and investors anticipating in cryptocurrency, I know it's been really a long run for these category of people.

Do you have any ideas about that? I mean if you think bitcoin can save the economies of countries with double digit inflation then you need to come up with more concrete ideas than just baseless thoughts.

To save an economy that is on the brink of collapse or has collapsed, we need to analyze and find out what caused it. From there we need to have appropriate solutions for each problem. What causes inflation in Venezuela? Do you know? Because there are thousands of causes of inflation while bitcoin is just a currency, it is not a panacea or miracle that can solve everything just by using it.

I have seen many people make similar statements as you but I have yet to see anyone come up with a detailed plan, most just speak their mind but they don't know what they are talking about.