Bitcoin Forum

Although bitcoin is not that an "official" currency yet, one can say that a country having most of its citizen engaged with a trending, highly-anticipated financial support that should help the country's economic and trading aspect to boom and improve.

We say this, thought of this, but in reality it is hard to imagine how can bitcoins fuel and power up a country and its economical stabilization with almost all of its citizen engaged with it? First of all, it is not an official currency which will give problems regarding to the trading and cycle of currency within a country. And lastly, the management and utilization of it is also a problem.

So, how can we say that the bitcoins are a support to a country and its economy? Is it even possible? How will that happen?

It doesn't help  the country's economy but it can support the citizen  who wants to store their riches on BTC. If you take a look at Venezuela's situation, people are now interested in BTC because they  now are trying to save their money before they'd be poor while having billions of cash on their vaults. Worse thing they might do right now is to create their own cryptocurrency which I think they were planing to.

No country is able let alone ready to simply switch over to a fully digital based payment system economy (such as Bitcoin). Society will never allow it (for the time being) and there are far too many obstacles preventing it from happening in a long time.
One great example is Iceland's attempted release of Aura (Auroracoin) which failed miserably (albeit for more reasons than one). Regardless, the world just isn't ready for something like that just yet. We can hope but it'll take quite a long time before we see something like that happening.

That is right that bitcoin help many people in many countries due to the trending and potential of bitcoin. And as you said that it is a problem for the country it self, because people are free taxes in any transaction using bitcoin, so it decreases that income of the country. Imagine if all citizen in certain country use bitcoin as all transactions. Obviously the country's income will decrease. It is hard to say whether bitcoin helps country's economy nor hinder it.

There is a very close relation between the bitcoin and country's economy because many countries bitcoin could help and overcome the economy  while their economy was in trouble. Bitcoin is digital currency which can operate world wide and it is linked with the modern technology. Bitcoins  features are attractive to the global investors and so its popularity has wide spread world wide.Bitcoin could help to recover the economic problems of the following countries such as Greece, Japan, Venezuela, Brazil etc.,

One example of seeing how bitcoin is affecting a certain country's economy is thru remittance.
Nowadays, more and more people are using the blockchain to send remittances to their home country.
Low transaction fee as compared to WU or other money transfer payment system.
With the rise of cryptocurrencies, those expats and other foreign workers are learning that crypto is not bad at all.
They are saving time and money, just few clicks on their computer or phone, they can send it right away.
That's why crypto is a big threat to those regular money transfer institutions.
So much projects here are now launched to be the new money transfer system. And it's a multi-million dollar industry after all.
So yeah, one way or another bitcoin or crypto is somehow affecting someone's economy.

Unfortunately bitcoin is not the correct tool to support the country, infact it can harm the country with its decentralised, without any supervision the users can used crypto to evade tax, and if all citizen used crypto the fiat circulation will be disturbed and it could be dangerous, bitcoin is not supporting the country but it is supporting the citizens, people buy and invest in crypto to evade inflation and it can prevent them from poverty

Taxation helps a countries economy. It's used for services and using bitcoin removes that. Unless we figure out a way to tax bitcoin then I can't see bitcoin being good for the country. Currently, it may be more of a harmful thing to use bitcoin rather than support the economy.

In my opinion, bitcoin has the capability in the economy development of a certain country. Like it provides job and could help people for easier and faster transactions, its a hassle free for everyone. It could really help if it is used worldwide.

Bitcoin is a global currency. It actually helps the individual not a country only countries citizen who wants to store their riches on BTC. Unfortunately some country don't allow BTC on their country, those countries people don't get any profit. For example, If you take a look at Venezuela's situation, people are now interested in BTC because they  now are trying to save their money before they'd be poor while having billions of cash on their vaults. Worse thing they might do right now is to create their own cryptocurrency which I think they were planing to.

And what are they doing with those bitcoins after they receive the remittance?
Yeah, sending a bitcoin payment is cheap as hell, the lowest I've managed was 2 cents, but if I try to buy coins from localbitcoins or from an ATM I must pay an extra from 3% to 9%.
Same for the guy who gets the bitcoins and he needs fiat.

And if you're telling me to use a bank to buy and sell coins.... doesn't this defeat the whole purpose?


The major problem with bitcoin is the actual usage.
I'm lucky and we have a store that accepts coins and deals with almost all kind of electronics, I bought all my stuff from them (a cpu, a ssd, a videocard and a smartphone). But I can't use BTC in real life for anything else
There is only a coffee shop and two restaurants that accept coins, and that's all... and a nail saloon  :-\
And I'm living in the capital of an European Country...

And it gets even worse!!!!
Even those two don't get customers... because of the mentality...what if the price goes up?

No, at this point bitcoin can't really compete or replace or whatever any national currency.
Even bitcoiners are not considering it a currency and rather an investment.(oh god I hope LeGaulois won't read this one)
 

There are work arounds and solutions about it what a country needs in order to get revenue from bitcoin is acceptance. If they accept digital currency then they can make ways to regulate it for example having a site owned by the government to exchange crypto to fiat that will benefit currency, economy and commerce.

It's true that Bitcoin is not something that can control a problem quickly, there are calculations before entering into a state problem like that, first I'm not sure Bitcoin will be managed properly at the moment and secondly I don't like it when Bitcoin will be centralized and in control disrupt the design the beginning of Bitcoin is safer for all low-cost users, so this fully needs to be calculated to be better in a country, for now it will only change some people not for the country, and maybe when it's time to anticipate decentralized risks I think this will good in the future.

Bitcoin can be a support in the country's economy only when people will indulge in this trend. Bitcoin alone will be useless if there is no one know about it and none will invest on it.

Bitcoin can help in a growing economy especially on industrializing countries like asia. Many unemployed are now working online and  cryptocurrencies add to this opportunity. Furthermore bitcoin add also the convenience of transaction online sending and receiving compensation and others. With this job online, it really helps the local economy.

Bitcoin can help those who use it, these individuals develop the society and thus the economy recovers and so on.
It is not the magic solution for all problems, nor is it an investment tool guaranteed results.

Take this forum as an example; there are many "especially in poor countries" who earn hundreds of dollars a month by participating in campaigns and selling their services and thus getting money. This money will help their families and pump more power into their countries' financial system.
If there are no real projects behind the Bitcoin they are just digital codes.

Not yet proven. Japan already embrace bitcoin but they are one of the strongest company. Other 2nd or 3rd world country started to be friendly to bitcoin but we don't know the effect to their economy as of yet.


Its hard to say. Bitcoin can gave people a lot of purchasing power which in term help the the country economy, but again there's no solid proof as of today. Or bitcoin can be used as cross-border-payments, specially in Asia wherein millions to pour to the country and using bitcoin as remittance.

I live in a country that has its fiat currency very volatile and currently horribly undervalued and bitcoin has been great to us. Even tho bitcoin has been dropping like mad, it has been going up because against the dollar our currency went down which caused bitcoin to go up because bitcoin is valued with dollar. I think having that fall back option of bitcoin helps us more than we assume. I have been paid in "dollars" and with bitcoin and out of the two I will always select bitcoin, because if bitcoin goes up, my money goes up, if bitcoin goes down my money goes up anyway because dollar increases in value against my fiat currency.

No there is already a proof, japan today is using bitcoins to improve their own economy and it was the reason why their people are having a wealthy life in their country.

Bitcoin or blockchain can be a very good opportunity for devoloping economies. I think governments know it but there aren't any attempt using blockchain and developing their economy rapidly.

if the bitcoin rises, the economy increases, if the bitcoin shuts down the economy will stay the or worse it may drop by time to time. We can't deny bitcoin is introducing its value to the economy and a big help in exchanging goods. If this rises there's a chance to help people in this kind of investment.

bitcoin is like two sides of a sword when you invest and a few months or even a year the price will increase the impact of economic progress in the country but if the opposite can cause a crisis

Truly it can not have that much good effects on the country's economy.

1) Bitcoin is too small asset within a country due to the global circulation
2) Even with the 50% of people getting engaged in the BTC trade wont help the country economic changes as they are doing it out of the Country's economic circulation
3) With the time the trades are diluted very fast with the global bitcoin trading and investment
4) Not all the BTC earned money is retained within country's bank and not all of them are filed with the taxes.

It wont help much.

Bitcoin can change the economy statement of any country. Any person having some capital in his hand can invest in it and can earn number of profits and even can make the money double. It has become the extra income source for many people and have helped them im different ways. Bitcoin can make economy stable of any country and can even save it from the crisis.

I can explain it in a lot of ways but it would take time if I did compose one. So think of it this way, citizens earning new money may it be mining, trading, or even just plainly accepting Bitcoin as a mode of payment will help the economy of that country as the new money flowing into their citizens' bank accounts would cycle to their country. The more money flowing inside their country would simply mean that their citizens would be giving the government a lot of cash in way of tax payments through their capital gains, income tax, and also other taxes that they usually pay in their country. But the cycle does not end there, the government having more cash would simply mean the government has more budget for projects, subsidies, and enforcement which will also give jobs back to their citizens. It is really just a cycle on how one thing can really improve the country's economy as a whole.  

I think that bitcoin may not be as useful to countries in which the economy is currently stable, compared to the countries which are currently experiencing an inflationary crisis of some sort, such as Turkey and Venezuela at the moment.

Bitcoin as an independent currency is not subject to any government debasement of the money supply, and thus, is able to retain its value much better than these national currencies.

I doubt that it would be able to "improve" the economy of a developed, stable economy per se on a macro scale, but bitcoin is certainly able to help out individuals in each economy on a micro scale, whether with storing of value, hedging against inflation, or international transactions.

I did not know of this at first, but your opinion has greatly increased my knowledge about bitcoins and a country with its citizens using it. Thank you very much!

Ok, I understand your point. So this meant bitcoins are only capable of helping individuals but not the nation itself? Thank you for your opinion!

perhaps the case of Venezuela must be a very valuable lesson, considering that the politics that occur in the world is very influential on the value of a country's currency, to anticipate the bad things that can happen to one currency, perhaps the Bitcoin currency can be the best choice, because it can be used in many countries and security is very guaranteed, many countries that do not support bitcoin must immediately follow the steps of developed countries that have legalized the use of cripto as a legitimate medium of exchange.

Bitcoin can support country economy because bitcoin is digital store of value. Its like gold and it can be as an asset. If peoples using bitcoin for their transaction, country economic can survive from high inflation because bitcoin is not like paper money that always printed by central banks