As we all have been speaking many times that Bitcoin possesses the power to diminish the use of fiat in a country where it's welcomed with full hearts, I wish to know that does it really have the ability to cope up with the challenges a country's economy faces? Can it help in the growth of their GDP?
As we know, Bitcoin is limited in number whereas Federal Reserve has the power to do monetary easing when things go wild with their economy levels. So with such limitations, can Bitcoin really stabilize any country's economic issues?
This is the same as a country with a garbage fiat (ie, mine) vs a less garbage fiat (ie. USD). Would it help stabilize the economy? Well yes and no. It might stabilize prices, but not make things cheaper, in fact it would make them more expensive, which makes for restarting the economy a bit trickier. But not impossible, as long as there are economic freedoms.
For example if my country declared bitcoin as the national currency, it wouldn't stop the economic crisis, but it would start alleviating 15 years of artificial pegging against the USD, one of the sources of economic distortion would cease. If this were accompanied by other freedoms, such as no customs fees to imports, sure people would start getting access to goods that have been sold overpriced by the few select elite that have a permit to import, since anyone could import directly and bypass this intermediary. That however doesn't directly improve the local economy, but...
Since bitcoin means zero controls to capital, investors could come and start business knowing fully they can take out their money immediately and instantly without the State intervening at all, thus easing their willingness to invest. A socialist state like this would love to seize their assets, which is why no one invest in the first place.
So the answer is, yes, not quickly, but yes it would help. The volatility of bitcoin looks rock solid next to our garbage fiat (currently world's worst), and just like under hyperinflation people changing prices everyday, the same they could easily do with bitcoin. Even better, since the actual exchange rate would come from far many more trusted sources in a global market, rather than the manipulated distorted mess here.
This is the next step for humanity, the first time a country declares bitcoin as the official currency. Japan seems to be backtracking, wanting to move from coin to asset, and that is a shame. Some countries officially allow both their fiat and another "strong one" such as USD or EUR.
But bitcoinization alone is not enough, a free (people's) economy is a must, the opposite to a socialist (State central planned) economy. And yes, it is best to rub it to socialists that their policies are against the people for the State, while the free market is FOR the empowerment of the people. Vote with your wallet, the ultimate form of direct democracy, something socialism takes away from you.
