Can Bitcoin solve the world's debt problem

[brainactive]

Can Bitcoin provide a way out of the world's debt problem? The current fiat world incentives debt through currency debasement and cheap debt. Too much debt can be a problem for long-term productivity and raises questions about sustainability.

Is bitcoin a possible solution to this mess? If more and more people start going from fiat to bitcoin, can we at least end up having a soft landing when shit hits the fan? Or will bitcoin exascabate the problem instead? Is there still hope for this world?

[TheNineClub]

I am not sure bitcoin needs to solve this problem. And I don't think it can. Bitcoin first and foremost should be a change in people's perception of what money is and how it can work without big institutions and governments. If it does just that, then its purpose is complete.

[Jawhead999]

Bitcoin is a currency of course it's possible, but does all country accept Bitcoin? Not yet except El salvador. They need to accept Bitcoin first as a alternative payment method, so they could buy Bitcoin as a investment and also accept it as a payment from other countries.

Or another scenario they could make Bitcoin legal in their country, and add capital gains tax for cryptocurrency. So, they will got money from the crypto tax to pay their debt and other expenditure.

[DooMAD]

It won't "solve" debt problems, but does provide an alternative to them.  For all the problems debt causes, it can also be useful at times.  Take mortgages as an example.  Banks need to be able to create new money in order to provide mortgages.  They wouldn't be able to do that if the world stopped using fiat and everything ran on Bitcoin.  I honestly don't think the world would cope if it went "cold turkey" and attempted to give up debt-based economies altogether.  

There will always likely be certain things for which Bitcoin just won't be practical to use, simply because it doesn't create debt in the way fiat does.  Just enjoy the best of both worlds.  Make use of debt when you need to, but escape it completely when you don't.  

[lablab03]

Unless if bitcoin become legal tender in the whole world maybe its possible to happen, but sad to say government is very against with cryptocurrency because of some reason that not valid for them. As the matter of fact if bitcoin can cope the requirements to become legal tender maybe it already take over the fiats which is even before when it become so popular and not so expensive like now. But government really don't want this kind of things to exist in the public places or even when it comes making transactions reason why also sometimes the adoption of it is getting slower in other countries.. I don't know in the future if it's still the same.

[NeuroticFish]

Can Bitcoin provide a way out of the world's debt problem? The current fiat world incentives debt through currency debasement and cheap debt. Too much debt can be a problem for long-term productivity and raises questions about sustainability.

Is bitcoin a possible solution to this mess? If more and more people start going from fiat to bitcoin, can we at least end up having a soft landing when shit hits the fan? Or will bitcoin exascabate the problem instead? Is there still hope for this world?

Not at all. Imho they are not even related.
Politicians love to spend more than the country produces, because that makes them look good in the eyes of those electing them (yeah, most people don't think on long term)

Getting a house or a car on a loan makes a lot of sense, especially as paper money loses value hence you won't pay that much extra.
Credit cards offer better benefits and protection than debit cards. And while most cover then at next paycheck, it's still debt.

Bitcoin solving something that's related to fiat money while fiat money still exists? No.
Bitcoin changing human behavior on long term? Maybe, but small chance.

All that Bitcoin can do is help you not pay all that debt with your money getting less valuable by every passing day. Whether you help yourself or not, it's up to you. Most of "the world" doesn't, hence it won't even help them. Too bad.

[cryptomaniac_xxx]

Can Bitcoin provide a way out of the world's debt problem? The current fiat world incentives debt through currency debasement and cheap debt. Too much debt can be a problem for long-term productivity and raises questions about sustainability.

Is bitcoin a possible solution to this mess? If more and more people start going from fiat to bitcoin, can we at least end up having a soft landing when shit hits the fan? Or will bitcoin exascabate the problem instead? Is there still hope for this world?

Unfortunately, bitcoin was not design to solve debt problem or any problem for that matter. In the beginning it was supposedly used as a payment method, but overtime it grew, becoming an asset class and investors and speculators used it to trade and make money. I guess what it can do is just give people financial freedom from all the profits that they are going to make.

[KevinRosa]

There is a key factor here: Bitcoin is recognized and used by the world's major economies.

If Bitcoin is accepted, I personally think that the world debt problem can be solved, and I also believe that only Bitcoin's volatility tends to balance。

Bitcoin is the only currency with a truly limited supply, which cannot be manipulated by any centralized organization, thus solving this problem. Through its unique design, it tries to eliminate the trust of established financial institutions in the world. The coexistence of the world economy is essentially balance, the balance of the interests of various sovereign states. The essential issue of balance is trust, and the world economy needs a brand new trust system.

[brainactive]

The current fiat incentivizes debt and investment. Bitcoin incentives saving.

We are at near 0% interest rates and need a way to transition out of this debt/investment euphoria. Governments want to do this without crashing markets (or if it crashes at least have a soft landing). Somehow I think bitcoin can provide this soft landing and enable governments to slowly raise rates without shit hitting the ceiling.

Maybe eventually bitcoin gets mass adoption and becomes the global reserve currency. And another 50 years later, the world ends up having another problem - too much saving and not enough businesses taking risks and innovating. Then another global reset and somehow we are back to the fiat world. If we look at what's happened in history, we started with sea shells (soft money) then gold (hard money), then fiat (soft money) then bitcoin (hard money) and maybe eventually we'll be back to fiat (soft money).

[Boov]

I am not sure bitcoin needs to solve this problem. And I don't think it can. Bitcoin first and foremost should be a change in people's perception of what money is and how it can work without big institutions and governments. If it does just that, then its purpose is complete.

That really doesn't solve the reality of what's been happening to our world economic debts, because it's just an asset that's used in a trading business. People only depends on the changing value which bitcoin had, everytime fluctuations varies. Government won't allow a volatile currency to be used for any legal purpose, specially when taking about the world's financial concerns.

[boyptc]

The world's problem about debt is going to stay forever and it will be passed onto the next generations.

While each individual and country, we're all equal in terms of the opportunity that might be seen through bitcoin. So, if a country sees good opportunity and have a long term vision for bitcoin just as us, then they'll buy because of that long term goal and they might include the possibility of reducing their country's debt.

[Obito]

I am not sure bitcoin needs to solve this problem. And I don't think it can. Bitcoin first and foremost should be a change in people's perception of what money is and how it can work without big institutions and governments. If it does just that, then its purpose is complete.

Well, if bitcoin reached the mythical prize of billion dollars a piece, I think that it can solve of course it's not the problem but that's selfish way of mindset especially if you have a family, are you going to leave a broken and chaotic place to your future generations knowing that you can solve it, of course it's a collective effort but it can always be done.

[CryptocurencyKing]

To some extent, we've got to look at things this way, that the world's monetary and food problems have got a lot to do with population. Its where the issue always starts because, the rate at which population grows and demands increases doesn't meet up with the production rate. No matter to what extent an innovation is brought up to solve the problem of today, the question of sustainability is always going yo be there because, the population problem is left unsolved. Yet, its the simplest problem of all and it would only take humans to listen. Population growth might mean an increased in workforce but, notbonly that, a lot of persons aren't willing to work but, a whole lot of others are too dependent on the government and the notion of its greener somewhere so, uour present location has got nothing to offer is killing us.
Bitcoin might seem a solution for the moment but, its only temporary!

[mrongoz22]

Is bitcoin able to solve the world's debt problems,?? in my opinion, people who are new to bitcoin, I don't think this is possible, because we know the government strictly prohibits bitcoin, and the government also limits the movement of bitcoin, if all governments accept bitcoin, and can make bitcoin a legal currency in under fiat currency, it is very likely that the world's debt will be able to be paid by bitcoin..

[xSkylarx]

I am not sure bitcoin needs to solve this problem. And I don't think it can. Bitcoin first and foremost should be a change in people's perception of what money is and how it can work without big institutions and governments. If it does just that, then its purpose is complete.

Well, if bitcoin reached the mythical prize of billion dollars a piece, I think that it can solve of course it's not the problem but that's selfish way of mindset especially if you have a family, are you going to leave a broken and chaotic place to your future generations knowing that you can solve it, of course it's a collective effort but it can always be done.

I agree, but at that price, I believe it is impossible, but if you have a large number of bitcoins, it is possible. It's like if you find a treasure, which we all know will be substantial, it could make anyone wealthy, and we all know that if the government intervenes, it will be with government funds. However, when it comes to debts, I don't believe it can solve the world's problem, but it can solve personal debts, as the price of bitcoin is extremely high, allowing anyone to solve their debts.

[MusaMohamed]

Can Bitcoin provide a way out of the world's debt problem? The current fiat world incentives debt through currency debasement and cheap debt. Too much debt can be a problem for long-term productivity and raises questions about sustainability.

Is bitcoin a possible solution to this mess? If more and more people start going from fiat to bitcoin, can we at least end up having a soft landing when shit hits the fan? Or will bitcoin exascabate the problem instead? Is there still hope for this world?

It is what governments, especially small and in debt nations want with CBDCs.

It will be a target of those nations but they will be challenged by IMF and big nations. If stable coin companies can mint their stable coins from thin air, small and in debt nations can mint their CBDCs from the air and pay for their debt. Is it easy as that? Big nations will not accept CBDCs from those financial-troubled nations.

This topic reminds us that why CBDCs are a trend in this word. Governments will spend less resources to mint CBDCs than to print paper or polymer fiats.

[haasanjui]

It doesn't mean that World's dept is created by Bitcoin and it can solve it. The question is All country will accept Bitcoin. Not fast but slowly when will Bitcoin reach to the moon all county will accept it because there are the many chances to be Bitcoin is source of transaction and investment in future.

[randegibran]

if one day bitcoin can become a legal currency as a means of exchange, it is not impossible for this to happen, because with the adoption of the government, bitcoin will automatically be taxed and the proceeds from the tax can go into the state treasury.and taxes from the government. the crypto contributors are not a few that will be obtained by a country because we all know a lot of people who invest from the crypto world and these businesses can be taxed by the government

[KennyR]

It won't solve the debt problem of the entire world, but it has got the ability to solve the debt problem of countries. This means the country that adopts the usage of bitcoin will be benefited good out of it.

Bulgaria is the country that holds more number of bitcoins. The volume of bitcoin holding is found high than that of the gold reserve. It was said that Bulgaria can go debt free if it's entire bitcoin holdings were used. Now the worth of its holdings might've grown much high.

[avikz]

Can Bitcoin provide a way out of the world's debt problem? The current fiat world incentives debt through currency debasement and cheap debt. Too much debt can be a problem for long-term productivity and raises questions about sustainability.

Is bitcoin a possible solution to this mess? If more and more people start going from fiat to bitcoin, can we at least end up having a soft landing when shit hits the fan? Or will bitcoin exascabate the problem instead? Is there still hope for this world?

Nope! Bitcoin is not designed to create a bankingless economy. It definitely provides an alternative route to hold "store of value" and eliminates the middleman from the process. But eliminating debt from the system is not something bitcoin can do.

A debt less economy means a bankless economy as well. When there is no requirement of debt, there will be no requirement for banks as well. Then whoever holds more amount of bitcoins will become the controller of everything. That's not what we want. It will worsen the wealth distribution inequality situation and poors will become poorer. Bitcoin is not a solution to all financial problems.