Can Bitcoin bring any country on its knees?

[skorupi17]

We all know the Monetary System and how it works. And in this modern era, we often use fiat money and digital money and since the beginning of the fiat money, debt co-exist with it. The debt ceiling is constantly rising because of the number written in our bank books, on a piece of paper that states we have money.

Now BTC comes and a new type of money emerges. And because of the possible growth of the BTC's value can BTC really bring a country on its knees?

I am not an economist but this seems to be identical to the case of the emergence of fiat money.

[OmegaStarScream]

It could bring a country on its knees If that country didn't regulate bitcoin, If they did then I don't see how this could happen as they will tax it, and make whatever rules they want and since people use exchanges and don't really care about decentralization and their privacy, this is not going to happen. In fact, It's the banking system who will bring bitcoin on Its knees If this continues.

[skorupi17]

Decentralization, in my opinion, can be the cause of bringing a country on its knees. As far as i know, BTC is an international internet/digital money which is decentralized and there is no one that regulates/control it. Since anyone with BTC can have transactions anywhere in the world without the consent of a government, this may deflate or decrease a country's currency value. Doesn't this contributes to the possibility of having more debt in an international bank or whatever, thus making a country's economy down.

[carlerha]

It could bring a country on its knees If that country didn't regulate bitcoin, If they did then I don't see how this could happen as they will tax it, and make whatever rules they want and since people use exchanges and don't really care about decentralization and their privacy, this is not going to happen. In fact, It's the banking system who will bring bitcoin on Its knees If this continues.

yes it can no doubt about this but i think it will take some more time. as some countries have already started thinking about making bitcion as legal currency. and hope that very soon they will consider bitcoin as legal currency.

[Mometaskers]

I think it's more likely that bitcoin would co-exist and affect fiat rather than bringing down the existing financial system. The price of bitcoin is still pegged to fiat. We still haven't come to the point where we exchange goods or services for bitcoin without thinking of its value in fiat. With the current state of transactions, I don't see that happening. Bitcoin is more likely to just be a store of value. It will give the government a run of its money though. Money stored as bitcoins are out of the banks hands and so by extension the government earn nothing from it.

[nemgun]

If a country's economy relies enough on bitcoin, and if the price of bitcoin suddently drops deep down, or skyrockets, then yes, the country could be taken down in a matter of days.
So, the equation is easy, and it happened in the US, this is why countries protect their currencies. I know that at a moment of their history, USD's price was decided by the president every morning to make it fluctuate, and he was choosing arbitrary numbers based on the content of his newspaper.

So the more you depend on a currency, the more you share both benefits and risks. A price skyrocketing could appear to be good for countries, but it isn't, at it causes lack of stability in budgets repartition.

[bettercrypto]

We all know the Monetary System and how it works. And in this modern era, we often use fiat money and digital money and since the beginning of the fiat money, debt co-exist with it. The debt ceiling is constantly rising because of the number written in our bank books, on a piece of paper that states we have money.

Now BTC comes and a new type of money emerges. And because of the possible growth of the BTC's value can BTC really bring a country on its knees?

I am not an economist but this seems to be identical to the case of the emergence of fiat money.

I do not think Bitcoin is created to bring any nation to its knees, instead it was created to free them from monopoly of the traditional finance system.  Instead of bring a country to its knee, I do think that bitcoin can help them to be stronger and developed instead.  If this country saw the potential of Bitcoin then they can profit from it and have an advantage over other country that doest not believe in it.

[coolcoinz]

It is possible if a country allowed its people to drop fiat and move their capital out of the country through Bitcoin. It was happening in China in 2014 and caused the government to impose bans on money transfer.
What happened there was only a small leak, if at least 30% of the citizens thought of this and the government would not react there would be chaos and banks would be the first to fall.

[tabas]

Well it depend on how many bitcoin's that country will own or store as their national wealth. But I don't think that is going to be a simple thing to bring a country on it's knees. And I don't think a country is willing to take the risk for this decentralized crypto currency where everything can be manipulated by those whales, their economy will be dead.

[Yakamoto]

We all know the Monetary System and how it works. And in this modern era, we often use fiat money and digital money and since the beginning of the fiat money, debt co-exist with it. The debt ceiling is constantly rising because of the number written in our bank books, on a piece of paper that states we have money.

Now BTC comes and a new type of money emerges. And because of the possible growth of the BTC's value can BTC really bring a country on its knees?

I am not an economist but this seems to be identical to the case of the emergence of fiat money.

You'd be pushing it if you started to talk about any country larger than somewhere like Thailand.

It would be nearly impossible to bring any first-world country down economically via Bitcoin being used, since there are a lot of other variables in play, including human factors, however, small economies like most of Africa would definitely experience some dramatic competition if Bitcoin ever became a major economic player within their borders. For example, Zimbabwe.

[bamboylee]

The title make it sounds like bitcoin is a conqueror that will slave a country.

Bitcoin is an alternative currency and I think it will not take over or kill any fiat in a country. The country will simply regulate or ban it if it becomes a threat.

[prass tyo]

So the more you depend on a currency, the more you share both benefits and risks. A price skyrocketing could appear to be good for countries, but it isn't, at it causes lack of stability in budgets repartition.

[clickerz]

I think it is exaggeration to say that bitcoin will bring countries to its knees. A country has always a means to survive and besides, bitcoin is an alternative only that is usually used in online transaction.Still we have to used a local currency or fiat in our daily lives.

[squatz1]

Bitcoin is not going to be able to bring bitcoin to it's knees unless someone who is in power in the country to be able to want this all to occur. Countries that are being led by countries that are competent and care for the survival of their own currency are going to want that to thrive.

They'll edge off any rivals in their way, and in this case, Bitcoin is going to be a rival so they're going to make sure to regulate it into oblivion to make sure it doesn't stand a chance at all.

It could bring a country on its knees If that country didn't regulate bitcoin, If they did then I don't see how this could happen as they will tax it, and make whatever rules they want and since people use exchanges and don't really care about decentralization and their privacy, this is not going to happen. In fact, It's the banking system who will bring bitcoin on Its knees If this continues.

The banking system will just be paying off the politicians in order to make this happen. Going to agree with you on the regulation though.

[U2]

At some point we're going to see long term lending with bitcoins but I would expect a 3-7% interest rate increase on your mortgage depending on when bitcoins become more stable in a few decades how much they seem to rise in value compared to the dollar or stay the same compared to goods and services.

[HabBear]

You're asking the wrong question. The right question is: Do we want Bitcoin to bring any Country to its knees?

The answer is: NO!

Think about what happens if Bitcoin becomes the dominant currency in an Country. The rich and powerful in that country use their wealth and influence to gain control over Bitcoin. Bitcoin then becomes manipulated by these rich and powerful. And Bitcoin becomes the controlled fiat that it originally sought to be an alternative from.

No, let Bitcoin remain on the outside as a less dominating alternative. The longer this can occur the greater change Bitcoin has of surviving.

[doomistake]

We all know the Monetary System and how it works. And in this modern era, we often use fiat money and digital money and since the beginning of the fiat money, debt co-exist with it. The debt ceiling is constantly rising because of the number written in our bank books, on a piece of paper that states we have money.

Now BTC comes and a new type of money emerges. And because of the possible growth of the BTC's value can BTC really bring a country on its knees?

I am not an economist but this seems to be identical to the case of the emergence of fiat money.

I think it is impossible since we are the one who controls bitcoin or fiat. We are the one who is using it and without us, there will be no bitcoin nor fiat in this world. Yeah, some people worship money and all what they are thinking about is money, but it doesn't apply in all of us, still, most of the people are not committed like this on fiat, because this is insane, it should be Money work for us and not We work for money.

[Babayega31]

Bitcoin is not going to be able to bring bitcoin to it's knees unless someone who is in power in the country to be able to want this all to occur. Countries that are being led by countries that are competent and care for the survival of their own currency are going to want that to thrive.

They'll edge off any rivals in their way, and in this case, Bitcoin is going to be a rival so they're going to make sure to regulate it into oblivion to make sure it doesn't stand a chance at all.

It could bring a country on its knees If that country didn't regulate bitcoin, If they did then I don't see how this could happen as they will tax it, and make whatever rules they want and since people use exchanges and don't really care about decentralization and their privacy, this is not going to happen. In fact, It's the banking system who will bring bitcoin on Its knees If this continues.

The banking system will just be paying off the politicians in order to make this happen. Going to agree with you on the regulation though.

No it won't happen that politicians will take over on charges of any possible bribes just to make this implemented. People would be the reason why it shoukd be on the country's banking system on digital currency adaptation specially with bitcoin transactions. If politicians will be making this difficult, well its a different story for that and it will deal to silent corruption.

[RoommateAgreement]

no it can not.
because it is not yet accepted by everyone to begin with so bitcoin is still very small to have any effect. and it needs to be adopted first, that is why price always rises.
and then, bitcoin is just money and money can not do that. government can simply regulate every business that works with bitcoin and we will have the same world with bitcoin as we have with fiat.

[Sadlife]

There is a possibility if people on that specific country stop using their government's fiat currency and start adopting the use of digital currency which is bitcoin. Then those corrupted politicians, capitalist has no more control to their people.
Then those people who is living in that country has chance to get a better life because they wont drown in debt no more.