Bitcoin - New form of Budget for poor countries

[Hydrogen]

Hello guys, I often read news about poor countries and a new idea came to my mind.
Imagine countries which have budget not more than 10 billion (milliard). Usually these countries import products from other countries and use USD for this. So some of them has national currency and their exchange rate to USD often changes (sometimes on bad side). If their economy fails on some steps, it will affect a lot to people + they depend on nat currency/usd exchange rate. National bank has to sell some usd in order to lower exchange rate and make it a little bit stable but it isn't fix.
I want to say that if they officially invest in bitcoin (they had to do it some months ago).. Imagine price is 2000$, budget is in bitcoin and after some months it rised to 6000$, they get 3x budget.
But no one cares about that.. Bitcoin is a way for them to develope quickly in an ultra fast way.

....

I remember reading years ago about the united states government devoting a small portion of its budget towards turning a profit to generate funding for certain programs. States may already engage in speculation to a degree. It is known that the US federal reserve made a profit of billions from the TARP bill (troubled asset relief program aka bank bailout). Banks like JP Morgan turn a profit from running food stamps and I wouldn't be surprised if other taxpayer funded welfare programs were run by private institutions which profited financially by running them.

One neglected aspect of this may be, governments owning or running machines which literally print money. Building on that type of financial platform, a team with good leadership could potentially achieve all types of incredible feats which might benefit humanity. For whatever reason that never seems to happen.

I think that a lot of governments will hold bitcoin confiscated from criminals. There is a news story about bulgaria holding billions of bitcoins seized from criminal raids. Governments will likely hold and sell billions of bitcoins, although it wont be because they invested in it.

[The_Dark_Knight]

Hello guys, I often read news about poor countries and a new idea came to my mind.
Imagine countries which have budget not more than 10 billion (milliard). Usually these countries import products from other countries and use USD for this. So some of them has national currency and their exchange rate to USD often changes (sometimes on bad side). If their economy fails on some steps, it will affect a lot to people + they depend on nat currency/usd exchange rate. National bank has to sell some usd in order to lower exchange rate and make it a little bit stable but it isn't fix.
I want to say that if they officially invest in bitcoin (they had to do it some months ago).. Imagine price is 2000$, budget is in bitcoin and after some months it rised to 6000$, they get 3x budget.
But no one cares about that.. Bitcoin is a way for them to develope quickly in an ultra fast way.

Not only that, it will be irresponsible for a government to do that, we must not forget that the money the governments levy through taxes is not their money, they cannot do as they wish, if they invested in bitcoin their taxes and bitcoin crashed the government will face bankruptcy and all the politicians that approved that plan will probably be put in jail immediately.

[Man21]

It is very risk to put budget in a country into bitcoin. Dont you think only it price up but think the other side. How if the price down in more than 50% less? They loss 50% of budget and what will happen with their built? Think about it.

[BTCeminjas]

Hello guys, I often read news about poor countries and a new idea came to my mind.
Imagine countries which have budget not more than 10 billion (milliard). Usually these countries import products from other countries and use USD for this. So some of them has national currency and their exchange rate to USD often changes (sometimes on bad side). If their economy fails on some steps, it will affect a lot to people + they depend on nat currency/usd exchange rate. National bank has to sell some usd in order to lower exchange rate and make it a little bit stable but it isn't fix.
I want to say that if they officially invest in bitcoin (they had to do it some months ago).. Imagine price is 2000$, budget is in bitcoin and after some months it rised to 6000$, they get 3x budget.
But no one cares about that.. Bitcoin is a way for them to develope quickly in an ultra fast way.

We could not blame them as this early age of bitcoin most people did not know what is bitcoin or crypto currencies, even me when i was first heard this bitcoin i don't believed already but when i was read and understand it's more profitable then i pursue my self to learned of this.
There are some people can't afford internet connection in their own still they did not know bitcoin what it is.
And about government why against bitcoin because they did not controlled bitcoin or maybe criminal crimes abused bitcoin and they did not traced it.

[Bobby park]

Hello guys, I often read news about poor countries and a new idea came to my mind.
Imagine countries which have budget not more than 10 billion (milliard). Usually these countries import products from other countries and use USD for this. So some of them has national currency and their exchange rate to USD often changes (sometimes on bad side). If their economy fails on some steps, it will affect a lot to people + they depend on nat currency/usd exchange rate. National bank has to sell some usd in order to lower exchange rate and make it a little bit stable but it isn't fix.
I want to say that if they officially invest in bitcoin (they had to do it some months ago).. Imagine price is 2000$, budget is in bitcoin and after some months it rised to 6000$, they get 3x budget.
But no one cares about that.. Bitcoin is a way for them to develope quickly in an ultra fast way.

I think sir you just saying that because you just researched it. You are not in the place of the people in poor countries like me. I am one of the testimony that poor country is hardly to develop specially when it comes in cryptocurrency. I was embarrassed but that is reality. We can't be developed because lots of people don't have educational attainment. Yes, bitcoin helps to improve the way of living but how? Did you think almost people can hold gadgets? No, of course. Our government is corrupt, I never trust if they will integrate bitcoin in our economy.

[kaya11]

Hello guys, I often read news about poor countries and a new idea came to my mind.
Imagine countries which have budget not more than 10 billion (milliard). Usually these countries import products from other countries and use USD for this. So some of them has national currency and their exchange rate to USD often changes (sometimes on bad side). If their economy fails on some steps, it will affect a lot to people + they depend on nat currency/usd exchange rate. National bank has to sell some usd in order to lower exchange rate and make it a little bit stable but it isn't fix.
I want to say that if they officially invest in bitcoin (they had to do it some months ago).. Imagine price is 2000$, budget is in bitcoin and after some months it rised to 6000$, they get 3x budget.
But no one cares about that.. Bitcoin is a way for them to develope quickly in an ultra fast way.

It's an advantage for those countries, but how about the United States would it be advantageous to them? If then in what way? Since USD is the means of exchange for them to be able to receive imported goods. The leaders of the poor countries can't just stick their nose to Bitcoin easily, they hold the countries future, if so they failed with Bitcoins fall, then they have invested more than half of their wealth then it would be very impossible to them to get back on their knees. It's not an easy decision to make, they would put the lives of their citizen at risk (Poverty).

[fishbonez11]

First, let me just say that not only the "poor" countries could do that.

But taking your point, that is one interesting idea honestly. If the government would set aside a budget for bitcoin, then the initial value would be multiplied  making the budget increase; meaning more budget for the country. That would be the case assuming that the government allows for bitcoin and the bitcoin market is in a favorable circumstance. Otherwise, the initial obstacle would be whether or not the government supports bitcoin.

So let's take one country for example, under ideal setup their budget would increase. The first concern is how the government would then trace or account for the amount of increase in the budget. If corruption happens (hopefully not) a large chunk could also be taken aside and the total amount would not be truthfully reported. The good motivation would then end up in the pockets of the greedy. For the government to prevent this and be transparent with their people, laws and regulations should be created and governing bodies should be strict in the implementation. Next, the country would then be a whale in bitcoin, if the country would then withdraws all of their bitcoin, a huge huge dip would then affect all other individuals partaking in bitcoin.

Taking this in a larger perspective, if all (or most) countries would do this in their budget, one country suddenly withdrawing would also affect one another. Thus, they should come with terms and agreement in this matter.

[chip211]

This is not a wise choice because the value of bitcoin is constantly changing and it is not a good choice for poor countries.

[MarconyGL]

Well, maybe so, only how about recognizing him in such countries. Indeed, few are aware of the crypto-currencies and their influence, the more it is unknown how he can improve people's well-being and worsen. Therefore, it must be taken only in emergency cases, when there is simply no other way out.

[Hamstead]

Its really hard for that to happens since the awareness of the community specially in poor countries is limited only. Besides, bitcoin is not a survival kit which can be useful in times of crisis. The only thing could be possible to happen with that scenario is to gradually embrace and cultivate their knowledge towards bitcoin for them to have enough knowledge and boost their courage to participate this new kind of technology.

[sumangs]

They couldn't afford bitcoin, maybe some but not a good idea at all. This could make them lost profit when its volatility is too much. Additionally, it is hard for them to learn bitcoin because of limited resources.

[miyaka26]

Most likely it will make things worse than using their own traditional fiat, it also strikes my mind that why not let the 3rd world countries make bitcoin as their budget or official currency so that for the time it is doubled, the economy of that country will also expand, positive volatility of bitcoin never fails us that's for sure but still this coin is still running some major problems that need to solve first before engaging in other adaptation, that is a huge gamble and risks.

[Aba]

Very good idea. but the policies will be taken by a country should be based on applicable law in that country, and also in relation to the economic policy it is necessary to regulate by law set by the government of that country.

[salihno71]

Reserves are usually kept in USD, EUR and several other currencies including domestic currency. Most governments also keep part of their funds in gold. Probably sometime in future also cryptocoins will come into play as an asset used to store budgetary means. At the moment i don't think that they see the bitcoin as a good asset for this mainly because of it's volatility. But this might change in the future.

[staywoke081]

True but they could also lose a bunch this way and because it is a fixed budget they can't afford to do so. I don't agree with the state doing that with the taxpayer's money because that is incorrect on a bunch of levels. However, I do think the citizens in those countries should invest in cryptos because that is likely their ticket out of the gutter. That is the blessing in disguise here with cryptocurrencies lets not lose sight of it now.

[AidenCasanova]

as i know, central bank is not allowed to do something that put high risk to the portofolio of people money
crypto still have alot of trouble for government
if they invest in it, they can not said to the people not to buy it in first place
they are the role of common bank and investor
much country still not allowed to use cryptocurrency in legal transaction
there is so many thread that discuss about it
in the near future... i hope it can be happening

[pinkflower]

shield132 only saw the gains but failed to see the failure when there are losses, and there will always be losses. What if the price of BTC fell by 2x? That is the national budget cut in half.

Face it, BTC is not stable enough to be a regular currency.

[superjeyy]

Hello guys, I often read news about poor countries and a new idea came to my mind.
Imagine countries which have budget not more than 10 billion (milliard). Usually these countries import products from other countries and use USD for this. So some of them has national currency and their exchange rate to USD often changes (sometimes on bad side). If their economy fails on some steps, it will affect a lot to people + they depend on nat currency/usd exchange rate. National bank has to sell some usd in order to lower exchange rate and make it a little bit stable but it isn't fix.
I want to say that if they officially invest in bitcoin (they had to do it some months ago).. Imagine price is 2000$, budget is in bitcoin and after some months it rised to 6000$, they get 3x budget.
But no one cares about that.. Bitcoin is a way for them to develope quickly in an ultra fast way.

Governments cannot invest on what they do not understand and there are a lot of politics involved. Doing it in a government scale will be hard (due to politics).
Cryptos is better for individuals.

I agree with KwiatzHaderach. We all know how advantageous Bitcoin can be which is why we have the tendency to jump into conclusions on how it can truly improve (based on what you wrote) a state of being; in your case the economy. Although the intentions are there, I would have to say that having the government involved with Bitcoino or any other cryptocurrency would not result to what you might have expected. I think Bitcoin and the government just don't go together. Experiencing how a governing unit can be so corrupt, incorporating their works with Bitcoin, something that is so highly volatile, can just boost their greed and worsen the situation of the whole country.

[imadmirer]

Economic welfare is to be governed by traditional ways of education and active contributory citizenship. This essentially is first a leadership initiative. There can be no shortcuts for development. The governments that face financial crunch can try investing in bitcoins or utilize cryptocurrency to ease the economic burden by providing an alternative to its citizens, but this should not be a direct form of investment.

It may be one of the schemes temporarily in the budget for investment. Further, generating ICOs should be targeted. Betterment comes through overall improvement in living rather than just an economic growth. Education, character, morality, responsibility, discipline and economic progress will have to go together.

[The_Dark_Knight]

I think corporations and big business make profits on a unit basis in terms of net quantity of products sold. They prefer currencies to be devalued to increase the unit of products they can export. While cheaper currency benefit big business they carry a malus of reducing the buying power of consumers.

Adopting bitcoin which could appreciate in value, rather than devalue the way the corporate sector favors, would represent a polar opposite to the economic policies most nations adopt in this day and age.

True, but while the volatility of bitcoin is an issue right now that is no longer to be the case when bitcoin is adopted by a significant amount of people in the future, and when that happens the economy of the world is going to enter an era of stability similar to what happened with the gold standard, we are far away to reach that point in time but at some point we are going to reach it.