Bitcoin can be useful for a troubled economy

[Warwendal]

Goldman Sachs: Bitcoin can be useful for a troubled economy

According to the report of Goldman Sachs, Bitcoin and other crypto-currencies can be a good alternative to the national currency for countries with an unstable economy.

 Analysts at Goldman Sachs Zack Pandle and Charles Himmelberg said that digital currencies and, in particular, Bitcoin, can become a viable means of payment in countries where traditional money is not sufficiently provided.

Goldman Sachs experts: crypto-currencies can help the troubled economy

[TIDOVEE]

YES, in troubled economy of an environment or country, how to survive becomes the struggle of the people and if bitcoin is available they are definite to survive, even in my country we have been battling with economy recession but we have always been able to survive the hurdles with this great opportunity.

[nl247]

Pretty true. Zimbabwe is a very good case study and for those who really knew about this country's economy, they would know how shitty it has been for a very long time which made their currency to end up being scrapped and with the government policies and all that has limited the people from being able to make international transactions, bitcoin has really been the best option for the citizens and it has been of huge help for a lot of them. Goldman sach is very right!

[BigTerror87]

Yeah, True indeed. Bitcoin and other altcoins is very useful to countries with troubled economy most especially on 3rd world countries where means and outlet of money is rare.

[kaysersoze]

Yeah, True indeed. Bitcoin and other altcoins is very useful to countries with troubled economy most especially on 3rd world countries where means and outlet of money is rare.

outlet of money? what do you mean with that? it is true that it could be a troubled economy, but they need to handle that.

I do not think that it will happen in a near future, it will take decades to implement a new economy based on cryptos.

[Hydrogen]

Another source for OP's story:

Goldman Says Cryptocurrencies May Succeed as Form of Real Money

Bitcoin may seem like a solution in search of a problem in the U.S., where transaction costs are already low and the dollar stable. But in developing countries, digital currencies could succeed as a real form of money, Goldman Sachs Group Inc. says.

Many currencies in sub-Saharan Africa have lost value due to high inflation and supply mismanagement. As a result, foreign money makes up more than 90 percent of deposits and loans in the Democratic Republic of the Congo, and Zimbabwe demonetized its currency in 2015. Bitcoin could also be useful in regions where governments impose strict rules on the use of traditional currencies from other countries.

“In recent decades the U.S. dollar has served its purpose relatively well,” Goldman Sachs strategists Zach Pandl and Charles Himmelberg wrote in a report Wednesday. But “in those countries and corners of the financial system where the traditional services of money are inadequately supplied, Bitcoin (and cryptocurrencies more generally) may offer viable alternatives.”

The report also warned that if digital coins become a widely used form of currency, investors shouldn’t expect the astronomical returns that have recently drawn unprecedented attention to the world of cryptocurrencies.

“Our working assumption is that long-run cryptocurrency returns should be equal to (or slightly below) growth in global real output—a number in the low single digits,” the strategists said. “Thus, digital currencies should be thought of as low/zero return or hedge-like assets, akin to gold or certain other metals.”

https://www.bloomberg.com/news/articles/2018-01-10/goldman-says-viability-of-crypto-is-highest-in-developing-world

....

Interesting statements by goldman sachs. Its nice to see something resembling an objective analysis. It contrasts with the "bitcoin is a bubble" doomsday predictions. Its possible goldman is invested in bitcoin and crypto and so they're taking a passive aggressive approach in attempting to say nice things about bitcoin, while not seeming like they have a vested interest one way or another.

Goldman sachs comments @ the bottom of the article are also very interesting. They envision bitcoin as being similar to gold or precious metals. This could mean they expect bitcoin to flatline and not carry much volatility into the future. I might be interested to know how they factor bitcoin's growth into the equation. Perhaps they're expecting the transfer fee issue to never be solved and so they expect growth to not matter due to network congestion and fees overriding bitcoin's future growth potential?

[shield132]

Goldman Sachs: Bitcoin can be useful for a troubled economy

According to the report of Goldman Sachs, Bitcoin and other crypto-currencies can be a good alternative to the national currency for countries with an unstable economy.

 Analysts at Goldman Sachs Zack Pandle and Charles Himmelberg said that digital currencies and, in particular, Bitcoin, can become a viable means of payment in countries where traditional money is not sufficiently provided.

Goldman Sachs experts: crypto-currencies can help the troubled economy

Yes, it can be a great solution and I wrote a lot about it's positive sides and you can see it here: https://bitcointalk.org/index.php?topic=2437967.msg24975119#msg24975119
But I was talking about countries with poor economic levels, if you think about using it for countries with unstable economic, it can even cause fatal fall. Bitcoin itself isn't stable and add unstable economic, not a good combination for me. Btw investing small part of their budget in it could help them to get extra percent of budget and get more money for developing.

[kier010]

yes it can be useful and it can really help but this can be implemented in the future if problems regarding cryptocurrency are fix. just like he said the manipulation of prices if their is no fix price it will be a big problem. and not all can used this because some lived in rural land with no electricity and with those poor people too.

[Indrawan77]

It is true that bitcoin can help people out of poverty and xan provide a better future financially, a lot of people including me already feel the effect of bitcoin, bitcoin could provide an income and new job opportunity that can help people to get a better life, if the government support bitcoin then it will sure increase the price and bitcoin could help more people

[BigTerror87]

Yeah, True indeed. Bitcoin and other altcoins is very useful to countries with troubled economy most especially on 3rd world countries where means and outlet of money is rare.

outlet of money? what do you mean with that? it is true that it could be a troubled economy, but they need to handle that.

I do not think that it will happen in a near future, it will take decades to implement a new economy based on cryptos.

I was pertaining to scarcity of funds to the people on those areas. I disagree with your statement. It is already happening being implemented as you can see some companies are already learning how to venture and use crypto-based currency.

[webtricks]

Goldman Sachs: Bitcoin can be useful for a troubled economy

According to the report of Goldman Sachs, Bitcoin and other crypto-currencies can be a good alternative to the national currency for countries with an unstable economy.

 Analysts at Goldman Sachs Zack Pandle and Charles Himmelberg said that digital currencies and, in particular, Bitcoin, can become a viable means of payment in countries where traditional money is not sufficiently provided.

Goldman Sachs experts: crypto-currencies can help the troubled economy

Yes, Bitcoin is viable mean to enhance position of troubled economy but how? This is big question.

People will say by letting individuals earn in BTC. But it won't work well because there isn't any established mean to earn BTC or if government try to introduce BTC as mode of payment then it also won't go well due to scalablilty and congestion problem.
 
Better way is that government should maintain its reserve in Bitcoins rather than Gold and Encumbered Securities. In this way, value of country's currency will rise with BTC rise and at the same time inflation could be controlled as country's currency will have instant liquidity with another currency having asset aspect.

[Finestream]

It is true that bitcoin can help people out of poverty and xan provide a better future financially, a lot of people including me already feel the effect of bitcoin, bitcoin could provide an income and new job opportunity that can help people to get a better life, if the government support bitcoin then it will sure increase the price and bitcoin could help more people

I agree.Bitcoin if properly utilized,can really help a troubled economy turns into a progressive one.I think the best way to make it realized is the full and pure acceptance of people to make use of bitcoin in their different transactions.The more people who are going to adopt and use bitcoin,the bigger the chances that there will be a continuous increase in the market price,thus increasing the demands for bitcoin will make us benefit huge profit compared before.

[whirlcoin]

Goldman Sachs: Bitcoin can be useful for a troubled economy

According to the report of Goldman Sachs, Bitcoin and other crypto-currencies can be a good alternative to the national currency for countries with an unstable economy.

 Analysts at Goldman Sachs Zack Pandle and Charles Himmelberg said that digital currencies and, in particular, Bitcoin, can become a viable means of payment in countries where traditional money is not sufficiently provided.

Goldman Sachs experts: crypto-currencies can help the troubled economy

Yeah bitcoin help the poor people to increase their standard of living by investing on the cryotocurrency.And it also good alternative option for the country with unstable local currency value.But still wear are not ready for the direct payment of bitcoins or other altcoins but surely cryotocurrency will take the place of fiat currency.
It is good to see that some of the famous corporates are accepting bitcoins af their payment, recently KFC announced they are accepting bitcoins as payment this will help more people to get the knowledge of bitcoin and cryotocurrencies.

[MarioLuck990]

Bitcoin can't help it self, its doomed to fail because of Miners and PoW. Don't say non sense things, Token economy can help business and people because Tokens are hard wired to real assets.

[darkangel11]

Of course it can. The way this works is a country that issues money is directly vouching for it. If its economy is booming so is the value of their money.
In case of troubled countries the currency becomes unstable and loses value to the point where it's no longer convertible to other currencies.
Bitcoin, although called unstable by the bankers, is still pretty stable when compared to some fiat currencies like the bolivar or the zimbabwean dollar.

[Hazir]

Bitcoin can't help it self, its doomed to fail because of Miners and PoW. Don't say non sense things, Token economy can help business and people because Tokens are hard wired to real assets.

It is not that bitcoin cannot be upgraded, core protocol is not the final version of the coin. PoW has its own disadvantages but PoS is similarly flawed.
Bitcoin can be a good store of value, there is no denying that fact, the only problem I can have with backing economy with BTC is the issue with volatility.
That being said - I would rather have bitcoin backing economy of a country that gold.

[darkangel11]

Bitcoin can't help it self, its doomed to fail because of Miners and PoW. Don't say non sense things, Token economy can help business and people because Tokens are hard wired to real assets.

And what are those "real assets" that you're talking about? Tether is supposedly linked to USD, but nobody can prove if they really have as much real USD as they're claiming. They should want to be transparent about it. If they really had what they  are claiming it would only add to their legitimacy and increase the demand. So we have to assume something isn't right.
Financial backing always require proof and this makes the whole thing much more complicated. Dishonest people can lie, confabulate, fabricate...

[jeraldskie11]

In my opinion, that's right. We need a world currency to import and export and its only the virtual currency which is bitcoin. There are many lives that has been change because of bitcoin, even undergrad are welcome into this.

[Eternu]

That is an interesting topic and idea, and i can say that i agree with it. It is possible for bitcoin and other cryptocurrencies to bring some stability to other countries economy, and help people live a bit better. But on the long runs that country would need to deal with its problems, because crypto can not solve everything on its own.
I can understand situation, because in country where i live, if there was not for my earnings in bitcoins i would have harder life. Not much, but bitcoin provide some luxury which i could not have if there was not bitcoin and other cryptos.

[Triyavam]

With the rise of Bitcoin prices at the beginning of 2017, predicts that Bitcoin prices could soar,
Bitcoin prices are ongoing, in view from eight years earlier until now,
things are very surprising is not it?
Because Bitcoin is more promising.
This is very beneficial for the economy of the troubled person.