Can bitcoin improve the economy of a country?

[qiman]

So many people around the world without access to proper banking facilities or even jobs, with just the click of a mouse and mobile internet, can access a wealth creation source connected to Bitcoin and other digital currencies. I have noticed a great surge of people from developing nations come to work online and earn Bitcoin which is ground breaking. Where government and corporate policies have failed, the decentralized currency has helped people get on their feet.

[MFahad]

Any amount of money that is spent causes improvement in the economy.  Crime does this, Bitcoin does this and all business does this.  If a business that accepts the money produces and sells a tangible object or service that employs people, then the benefit is higher, but even if a person pays $5 for a completely non-existent nothing, then there is a benefit.
 

[Coinometrics]

Cryptocurrencies as a legal tender in any country will drastically improve their respective economies:


- No more Central banks, no quantitative Easing (= stealing)
- Governments ability to lend is drastically reduced, they have to actually repay their debts rather than repaying debts through inflation (= stealing from the people again)
- Individuals can trade with much more freedom and less risk of government intervention enacted through the banking sector, creating wealth. Fact: the informal sector makes up 10-50% of every country's economy (depending where you live) and will thrive with Bitcoin
- Much lesser transaction costs (talking about Cryptocurrencies in general, not Bitcoin in specific)

[Schuyler]

Any amount of money that is spent causes improvement in the economy.  Crime does this, Bitcoin does this and all business does this.  If a business that accepts the money produces and sells a tangible object or service that employs people, then the benefit is higher, but even if a person pays $5 for a completely non-existent nothing, then there is a benefit.
 

As I read a lot here, the money people earn from bitcoin gets spent on everyday expenses and that already contributes to consumption which leads to an economy that has more spending power. Now if the price of bitcoin can further increase, that means it has more purchasing power attached to it and even a small earning of .02 on a weekly basis can already come a long way, especially for those living in developing countries.

[Tamilson]

Yes i think if the government it self and all people under their concern will use bitcoins and put tax on it because thats the only way people and the government can raise its economical status by putting and collecting tax

How does one country's economy move? It's by the taxes that people pay mostly and btc as we all know is not yet tax free. Though it may affect the economy by providing people with means of earning money to spend on but in gemeral terms, i don't think bitcoin is recognized yet to affect the economy. Let's see for those countries that adopted btc already

Yes  its true and even btc inflates there's no impact in our economy. So how come it can help us to grow. However it will happen when the government legalize btc.  And its not far way to go, many countries are legalizing btc, india and australia will be next and this is big news to bitcoin economy.

[Silberman]

If the amount of bitcoin users in a country blows up and they chose to use bitcoins as their local currency, it might ruin a country. First, there would be no tax to collect since bitcoin isn't taxable. The government can't just create a new law saying that they are going to put bitcoin users to jail for tax evasion because their jail cells will be filled up. Everyone will be in jail, that's even worse.

Anyway, bitcoin gives a lot of opportunity to people. One of the major reasons why people would choose to use bitcoin and get paid in bitcoin is because they get paid a lot more than they usually would in fiat. And bitcoin's price is increasing too. Ultimately, that's improving the economy of a country because people are importing more and more money to their country.

You think governments cannot do that? That is exactly what they have being doing in Venezuela and that is with a tiny number of users, what do you think it is going to happen if a big amount of people adopted bitcoin, governments will do anything necessary to ensure their income, it is that simple, second bitcoin is taxable under almost every law imaginable, you are probably subject to capital gains already.

[Sled]

If the amount of bitcoin users in a country blows up and they chose to use bitcoins as their local currency, it might ruin a country. First, there would be no tax to collect since bitcoin isn't taxable. The government can't just create a new law saying that they are going to put bitcoin users to jail for tax evasion because their jail cells will be filled up. Everyone will be in jail, that's even worse.

Anyway, bitcoin gives a lot of opportunity to people. One of the major reasons why people would choose to use bitcoin and get paid in bitcoin is because they get paid a lot more than they usually would in fiat. And bitcoin's price is increasing too. Ultimately, that's improving the economy of a country because people are importing more and more money to their country.

You think governments cannot do that? That is exactly what they have being doing in Venezuela and that is with a tiny number of users, what do you think it is going to happen if a big amount of people adopted bitcoin, governments will do anything necessary to ensure their income, it is that simple, second bitcoin is taxable under almost every law imaginable, you are probably subject to capital gains already.

Yes because of taxation the government is capable to make income from bitcoin because they can tax the bitcoin user and if we will generalize the bitcoin users they are almost earning above average compare to the salary or income of an average employee so the government can easily make a lot of profit and it help the economy of the country to be more powerful.

[King Sastro]

Yes of course, this is because the bitcoin is already proven to create "new rich" so that if a transaction with bitcoin can improve the economy of a country e.g. is reducing unemployment.

[JaRViZZ]

If you take taxes for the use of bitcoin, then it will be able to improve the economy of the country. Only on condition that these funds collected for taxes will be used for their intended purpose.

[Hydrogen]

If africans were able to use bitcoin to maintain their wealth and escape hyperinflation of the zimbabwe dollar, that's one easy example of how crypto can improve a nation's economic circumstances.

Another easy example, bitcoin's transfer fees are far less than for services offering wire transfers could introduce industry competition which would encourage wire transfer services to modernize and advance their industry to compete.

Bitcoin's performance against inflation in comparison to fiat currencies and bitcoin's performance against regulation could serve as other examples. There are a lot of ways in which bitcoin could improve a countries economy.

[deisik]

Another easy example, bitcoin's transfer fees are far less than for services offering wire transfers could introduce industry competition which would encourage wire transfer services to modernize and advance their industry to compete

You wouldn't be able to use Bitcoin as a remittance vehicle in reality (if that was your point)

Since you would have to add insane premiums to avoid being caught by volatility. You could theoretically hedge your risks, but it would require you to freeze plenty of money, which would instantly render the whole idea meaningless and futile. Regarding Bitcoin performance against inflation, this is nowhere near being "another example" in respect to Bitcoin improving the economy of a country (as per thread title). If it were so, the myriad of penny stocks jumping like wild should have already boosted the economy to incredible heights. Somehow we don't see that happen

[Hydrogen]

Regarding Bitcoin performance against inflation, this is nowhere near being "another example" in respect to Bitcoin improving the economy of a country (as per thread title). If it were so, the myriad of penny stocks jumping like wild should have already boosted the economy to incredible heights. Somehow we don't see that happen

You wouldn't be able to use Bitcoin as a remittance vehicle in reality (if that was your point)

Since you would have to add insane premiums to avoid being caught by volatility. You could theoretically hedge your risks, but it would require you to freeze plenty of money, which would instantly render the whole idea meaningless and futile.

I'm not certain what you're trying to say here.

If bitcoin is a currency its inflationary performance would be compared with other currencies.

A currency(crypto anyway), like btc, would not be compared to a penny stock as if they were in the same category.

In the US, most "economic growth" comes from real estate and finance sectors. Penny stocks fall under "finance" btw.

Premiums are not necessary for volatility. As volatility for bitcoin has trended in an upward direction the status quo already benefits sellers and retailers and no adjustment is necessary.

[BeGoods]

Yes of course it can, it is time the country switched to a better financial system i.e. bitcoin, interesting thing of the bitcoin is acceptable globally so that if any country accept bitcoin then the economy will be better.

May have a good effect on the financial and economic users, Because bitcoin will provide benefits and it will have a good effect on their finances. But for the government's financial system Even bitcoin will destroy the order, because the government can not intervene when bitcoin is used as currency in their country ?

[Cofee.BLUE]

Today many countries accept bitcoin as a virtual currency, is it because bitcoin is so high that they think bitcoin can change the country's economy, or because the country has many bitcoin users already?

Maybe for those countries wherein bitcoin has been already legalize. But for those countries that have a small quantity of bitcoin users it may not. In addition to that, country's economy rise is based on its productive individuals wherein, the number of employed people are counted and the progress and improvement that can be seen to prove the evidence of its economic rise.

[deisik]

Regarding Bitcoin performance against inflation, this is nowhere near being "another example" in respect to Bitcoin improving the economy of a country (as per thread title). If it were so, the myriad of penny stocks jumping like wild should have already boosted the economy to incredible heights. Somehow we don't see that happen

You wouldn't be able to use Bitcoin as a remittance vehicle in reality (if that was your point)

Since you would have to add insane premiums to avoid being caught by volatility. You could theoretically hedge your risks, but it would require you to freeze plenty of money, which would instantly render the whole idea meaningless and futile.

I'm not certain what you're trying to say here

You basically claimed that Bitcoin can improve the economy of a country via its "performance against inflation in comparison to fiat currencies". If we assume that you are right, then penny stocks (which is what Bitcoin matches in real life if we cut the crap about its so-called "market cap") massively outperforming inflation of fiat currencies should make the economy surge, but this doesn't happen. The reason is pretty simple though, they can outperform inflation so much only as long as they remain so tiny. Further, I wouldn't bring up the example of the US altogether since most of its "economic growth" ultimately comes from exporting the US dollar. The US basically steals wealth from the rest of the world by paying with paper, not with real goods (as other countries are obliged to do)

I don't really know how you are going to fit Bitcoin into this scheme

[Jikalau]

Today many countries accept bitcoin as a virtual currency, is it because bitcoin is so high that they think bitcoin can change the country's economy, or because the country has many bitcoin users already?

I think because of the large number of users using bitcoin.

Bitcoin can not repair a country but bitcoin can improve one's economy.

Because bitcoin is a risky trade I think the state will not invest its money into bitcoin

[millgates]

Today many countries accept bitcoin as a virtual currency, is it because bitcoin is so high that they think bitcoin can change the country's economy, or because the country has many bitcoin users already?

I think because of the large number of users using bitcoin.

Bitcoin can not repair a country but bitcoin can improve one's economy.

Because bitcoin is a risky trade I think the state will not invest its money into bitcoin

Bitcoin will not be risky if it is adopted by most of people in the world. Bitcoin can help countries which have no good remittance service in their area. By using bitcoin people in their country can reduce the money transfer costs. Of course it economy of country will improve.

[Sled]

Today many countries accept bitcoin as a virtual currency, is it because bitcoin is so high that they think bitcoin can change the country's economy, or because the country has many bitcoin users already?

I think because of the large number of users using bitcoin.

Bitcoin can not repair a country but bitcoin can improve one's economy.

Because bitcoin is a risky trade I think the state will not invest its money into bitcoin

Bitcoin will not be risky if it is adopted by most of people in the world. Bitcoin can help countries which have no good remittance service in their area. By using bitcoin people in their country can reduce the money transfer costs. Of course it economy of country will improve.

If a country will adopt bitcoin and promoted it as a good kind of remittance because of its affordability on the fees then people will adopt it and one of the things that a country can do is to tax money transfers with bitcoin and because of that they can earn money which will become a profit for the whole country and it is already expected to get a lot of profits because a lot of people will use bitcoin in transferring money because of its fast and secured transactions.

[Dontme]

Ofcourse bitcoin can improve the economy of a country because many people use bitcoin as a source of income and people have job also because of bitcoin and if people have money earned to buy food and other things in the market there will be more tax to be collected by the government.

[azguard]

Biggest problem for this in most countries would be tax, and how to collect it. Will they be greedy or they will be normal and use same amount that exchanges do with money transfer. This is something that need to get in debate when this is good for both sides then everything can be good.