Hyperinflation - Will it lead Countries to Adopt Bitcoin?

[pooya87]

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.

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)! 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, ...).

[adaseb]

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.

[AVE5]

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.

[DeathAngel]

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.

[bittraffic]

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.

[SickDayIn]

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

[slapper]

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.

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

[N.O]

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.

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.

[Wind_FURY]

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.

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)! 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, ...).

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?

[Chilwell]

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.

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.

[bittraffic]

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.

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.

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.

[WillyAp]

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. 

[Fortify]

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:

Argentina Will Mine Bitcoin With Stranded Gas Thanks To Genesis Digital Assets (GDA)
https://www.forbes.com/sites/digital-assets/2024/05/07/argentina-will-mine-bitcoin-with-stranded-gas-thanks-to-gda/?sh=3cc801da45f9
Genesis Digital Assets to Launch Flare Gas Powered Bitcoin Mining Site in Argentina
https://news.bitcoin.com/genesis-digital-assets-to-launch-flare-gas-powered-bitcoin-mining-site-in-argentina/

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

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.

[peter0425]

Very few countries in the world ever have or likely ever will receive hyper inflation.

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 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%.

The current period that most of the countries in the world are facing is just low to medium inflation

Inflation not exceeding 2% is actually quite normal and, in some cases, even encouraged.

[electronicash]

Very few countries in the world ever have or likely ever will receive hyper inflation.

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 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%.

The current period that most of the countries in the world are facing is just low to medium inflation

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.

[bestcoins1]

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. 

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.

[NotATether]

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

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.