Bitcoin and the economy

[_act_]

Some countries are now supporting bitcoin which is good and it is helping bitcoin adoption, some countries are nothing supporting bitcoin, some went to the extreme by declaring bitcoin illegal. El Salvador accepted bitcoin a legal tender, Kingdom of Tonga with a population of 100000 is making move to make bitcoin a legal tender. Bitcoin has done well because many country make it legal.

I started to wonder about the reason some countries hate bitcoin, it stated in many country by their central bank because they are planing ways to make the currency of their country superior, they see bitcoin as a threat. The banks will not come up straight to the point, all they will say is that bitcoin can bring up illicit activities. what is funny is that the illicit activities that had started many years ago before the creation of bitcoin.

This is not about the lies from the central banks, this is not about lies bitcoin critics are saying, this is about economic downside of bitcoin. Some people will say bitcoin will add nothing good to the economy, Some people are saying making bitcoin a legal tender in a country like El Salvador that do not have their own currency but spending US dollar will not offer anything good but a downside.

See this quote:

El Salvador is a developing country, developing countries are used to borrowing and El Salvador is not the only country in dept, developing countries that do not make bitcoin a legal tender are also in dept, they all borrow.

If El Salvador has adopted bitcoin earlier, will the country foreign dept be up to $22 billion? Do not get me wrong in this direction, I understand that before a country will accept an asset like bitcoin as a legal tender, there are some things to consider. El Salvador would have grown more than this if the country adopted bitcoin earlier and their dept will not be up to this.

When did El Salvador made bitcoin a legal tender? that was mid 2021, but see El Salvador's dept comparing it with gross domestic product in the country from 2012 to 2020 which is what you are talking about:

El Salvador Government Debt to GDP

https://tradingeconomics.com/el-salvador/government-debt-to-gdp

Is bitcoin the cause of the dept? EL Salvador has not made bitcoin a legal tender in 2020 but the dept grew as years passed by. If president Bukele know all these, it is frustrating which could be the reason for his tweet.

If bitcoin adoption continues, do you no think this can not help El Salvador? It will help the country. if your answer is no, then you might be one of the people that did not support bitcoin in the past.

Before El Salvador make bitcoin a legal tender, see their dept relating it to GDP in the country from 2012 to 2020. Was there anything good?

See the reaction from many critics about El Salvador bitcoin adoption.

The question I want to ask is about the effect of bitcoin on economy in the countries that make it legal?

[mindrust]

The whole world now needs to accept bitcoin.

I second this. One currency, one blockchain, one store of value. Insane profits. The central banks should get their shit together and start dumping their gold reserves because they ain't good. They just sit there! Why don't they buy bitcoin instead is beyond my understanding.

El Salvador adopted bitcoin and yesterday there were news saying that Turkey is on the brink of adopting Bitcoin as well. Some say the news were fake but I am not sure about that. Turkey is exactly the country that would adopt crypto.

Saludos to our friends in El Salvador.

[_act_]

The whole world now needs to accept bitcoin.

If the countries do not accept it as a legal tender, they should at least make it legal. I believe countries that regulate their currency by their government can not make bitcoin a legal tender, but they can accept it which is still almost the same with little difference.

El Salvador adopted bitcoin and yesterday there were news saying that Turkey is on the brink of adopting Bitcoin as well. Some say the news were fake but I am not sure about that. Turkey is exactly the country that would adopt crypto.

There is no official news that Turkey will accept bitcoin as a legal tender which some people can be confused, but it is possible that Turkey can make bitcoin legal. What I heard about Turkey is that Turks can use bitcoin but just the bank transactions from crypto organizations are block because of the ban. There are some countries bitcoin is banned but citizens can use it.

[dbc23]

We can't have the whole world embrace a new technology immediately but with time they would definitely be forced to join the train when the see they have no other options. The challenge we have with global Bitcoin adoption at the moment is the fear of the unknown as well as the fear that Bitcoin has come to devaluate their local economy but the truth is no matter how much the fight the technology one day a new government who understands the trend would definitely see into it's adoption

[Mauser]

For large countries with strong economies I don't think making bitcoin legal or illegal will have a strong impact on the economy. The exception here would be countries like China who like to control their currency. Having unregulated crypto currencies could undermine their own currency. They are afraid to lose control, but since the economy is so large the impact of the crypto ban is small. There are countries like Iceland or Kazakhstan who are strong into crypto mining, they would feel a ban on cryptos much more. So overall I think a ban on cryptos are going to hurt economies because it would generate more taxes.

[hugeblack]

The economic effects depend on the amount of money that will be injected into the economy and the extent to which citizens are treated as legal currency. Let’s take as an example a country considering the Chinese yuan a legal currency. However, the amount of trade exchange between that country and China does not exceed a few million dollars and therefore it will have no effect.

Exactly if the Salvadoran people don't use bitcoin it will have no effect other than using it to hedge against the dollar.

As for why governments are fighting Bitcoin, because they are something they cannot impose taxes on, and it will cost them a lot to track those currencies, so they are banning them.

[Alisha FR]

The whole world now needs to accept bitcoin.

If the countries do not accept it as a legal tender, they should at least make it legal. I believe countries that regulate their currency by their government can not make bitcoin a legal tender, but they can accept it which is still almost the same with little difference.

In this case it is not an easy thing because it is simple, because it involves the amount of currency inventory freely in the world of Crypto is a big problem with all the chaos that occur in it, a simple example in several countries in Asia "Indonesia" even Bitcoin Clutal is something Its illegal because it cannot concentrate by the state because in terms of anonymous users and must be controlled by anyone who can indeed provide a negative moist on the country's economic movement. Therefore, when there is a country that does not agree to legalize Bitcoin, I think it is very reasonable.
Therefore the real movement in bitcoin circulation is purely a community that can indeed be considered as many state representatives.

[YOSHIE]

If, you compare Bitcoin & Economy, I actually think the opposite.

Some countries are now supporting bitcoin which is good and it is helping bitcoin adoption, some countries are nothing supporting bitcoin, some went to the extreme by declaring bitcoin illegal.

They have reasons to do both, in fact they know Bitcoin is a prospect to boost the economy, for a country that understands it.

I started to wonder about the reason some countries hate bitcoin,

Like I said they don't hate Bitcoin, quite the contrary, they hate themselves, the reason is simple, Lust, meaning: the people should not live in prosperity, they prefer to see their people live in poverty, the program is running.

El Salvador, the current best way and solution in dealing with Bitcoin for its people, they want people to live better economically, not dependent on the state/government, social assistance, charity etc.

[usekevin]

If, you compare Bitcoin & Economy, I actually think the opposite.

Some countries are now supporting bitcoin which is good and it is helping bitcoin adoption, some countries are nothing supporting bitcoin, some went to the extreme by declaring bitcoin illegal.

They have reasons to do both, in fact they know Bitcoin is a prospect to boost the economy, for a country that understands it.

I started to wonder about the reason some countries hate bitcoin,

Like I said they don't hate Bitcoin, quite the contrary, they hate themselves, the reason is simple, Lust, meaning: the people should not live in prosperity, they prefer to see their people live in poverty, the program is running.

El Salvador, the current best way and solution in dealing with Bitcoin for its people, they want people to live better economically, not dependent on the state/government, social assistance, charity etc.

Before the concept of economy and bitcoin was different phenomenon. But now both of that was interlinked. Most of the country was legalised the bitcoin, to overcome the tax losses. But the world economy is now depending on the bitcoin and the crypto currency. People from poor family to inverse on the cryptocurrency now was the legal one now. The life of such people also uplift by the investment in the crypto currency.

[fiulpro]

Well I think Bitcoin was overall not actually taken that seriously by the countries like El Salvador and they never thought that somehow it would be relevant in today's world. I do think that we cannot really compare bitcoins and the economy. The bottom line is the interference of Bitcoin in the day to day economic situation in any particular region, which is now minute. Had it been overly webbed then they wouldn't have been able to seperate bitcoins and other cryptocurrencies as a decentralized unit. It's not entirely related, a country's wealth cannot be determined by them being involved with Bitcoins as well. Plus I believe most of the countries are in debt now we cannot just pinpoint it to the debt revolved around bitcoins.

[Stalker22]

I started to wonder about the reason some countries hate bitcoin, ...
~
The question I want to ask is about the effect of bitcoin on economy in the countries that make it legal?

I don't think there are countries (governments) that truly hate Bitcoin. In the worst case, they are afraid of it.

Governments have the power to control their traditional native currencies. Bitcoin offers a level of decentralization that seems to be working so far, but of course it is still a new experiment in a mostly centralized world. As far as I can see, the trend is still towards a centralized economy, with each central government going beyond its own borders to control the economy, while at the same time becoming less capable of controlling the rest of the world as people have more choice in the matter. Regulating or banning Bitcoin may only delay the inevitable.
However, governments will be very careful to make sure they can control the money supply, and that it is so precious to them that they don't want to lose it.

[Fesatmas]

Today Bitcoin crossed the resistance threshold which means a drastic drop is still happening. With the current phenomenon apart from news or issues that make the crypto market also go down, it will be an opportunity or ticking time bomb. For El Salvador, they just need to take more and back it up in Bitcoin. Developing countries will always perceive this condition as a threat because its value is still influenced by news. Whereas the reserves they still held onto like gold were not particularly touched by this sort of thing.

So, when all the global economic markets, both in countries that still doubt the adoption of their deposit in Bitcoin. Therefore, we cannot force the country as a whole, but rather specific individuals who have deposited their finances in Bitcoin.

[el kaka22]

It is clear that small nations could take advantage of this situation whereas big nations will hurt from it. Bitcoin is something that goes up in dollars, and most fiat currencies drop in value against dollar. So, if you leverage your own national currency today, tomorrow when your fiat is less valuable against the dollar, you could sell your bitcoins and could get that difference back. This doesn't help the USA, it is also valid for euro, pound, yuan and so forth.

If you are a big nation AND support bitcoin then you could do it with a lot larger amount and could be great, China buying 1 trillion dollars worth of bitcoin would guarantee their future, either bitcoin will suck because of it and they will be fine, or it will be great and they will still be fine, but they decided to ignore that for some reason and they will hurt because of it as well.

[lixer]

The question I want to ask is about the effect of bitcoin on economy in the countries that make it legal?

There has been lots of discussion on US dollars and its inflation problems and when world economy is still being calculated as USD as a base currency, you will find everything get devalued over the time hence obviously adopting bitcoin against dollars will definitely give significant protection against inflation.

Moreover, why some of these countries are so head bent on not accepting bitcoin and crypto currency in general is what I am yet to apprehend and some out of their selfish reasons has even go to ban and make crypto illegal, while some won't make it a legal tender and allow it transactions within the country. I think there is a lot of positive impact on the economies of countries that have decided to accept bitcoin and El Salvador should serve as source of conviction for them.

[Oceat]

We can't have the whole world embrace a new technology immediately but with time they would definitely be forced to join the train when the see they have no other options. The challenge we have with global Bitcoin adoption at the moment is the fear of the unknown as well as the fear that Bitcoin has come to devaluate their local economy but the truth is no matter how much the fight the technology one day a new government who understands the trend would definitely see into it's adoption

The whole can embrace Bitcoin and expand its adoption but fiat should coexist with it since most of these leaders in the other countries don't like the supremacy of Bitcoin since they can't control the money and that's good for sure. But I don't know if the whole world is ready for that it might take some time to make them use Bitcoin but most of these people don't know what to do of having a wallet address or a private keys.

If El Salvador the the set of an example then I think most people in the world can do this also.

[Luqman]

The question I want to ask is about the effect of bitcoin on economy in the countries that make it legal?

There should be 3 possibilities:
1. Improve their economic strength
2. Worse their economic strength
3. No effects at all

When they make Bitcoin legal, they will do massive efforts to take advantage of Bitcoin. The perfect example is El Salvador, even their president takes a part in Bitcoin promotion and he initiates to build any facilities to optimize Bitcoin usage. At the end of the day, if they do it properly and choose a good strategy, I think a country that legalized Bitcoin can get a good advantage. So, improving their economic strength is possible.

[Darker45]

The government is supposed to be the most powerful entity in a country. It is not the people really. Neither is it true that the government is the people. One reason why governments are powerful is that they have the control over money. And the strength of their money is more or less the strength of the country. Such is the reason why a decentralized Bitcoin isn’t really attractive to them. And it probably goes to the extent that a government would rather stick to their falling fiat rather than embrace a digital currency which is neither theirs nor could be taken over.

However, I guess it is easier for a country that doesn’t have its own currency, or whose currency is held hostage by powerful economies, or whose currency is so weak it could easily be bullied by stronger currencies to embrace Bitcoin as a viable alternative currency.

[adzino]

I started to wonder about the reason some countries hate bitcoin, it stated in many country by their central bank because they are planing ways to make the currency of their country superior, they see bitcoin as a threat. The banks will not come up straight to the point, all they will say is that bitcoin can bring up illicit activities. what is funny is that the illicit activities that had started many years ago before the creation of bitcoin.

They hate bitcoin (not hate, scared of it) because most government don't know much about bitcoin or how it works. Others that know about bitcoin and crypto currencies are scared because they don't like decentralization. They don't want to give power to their people. And when it comes to financial aspects, they would never want to give complete control to their people. The government is power hungry. But eventually they will allow bitcoin and might make it a legal tender, but only after imposing strict regulation.

El Salvador adopted bitcoin and yesterday there were news saying that Turkey is on the brink of adopting Bitcoin as well. Some say the news were fake but I am not sure about that. Turkey is exactly the country that would adopt crypto.

Didn't Turkey put a ban on crypto currencies or was it just mining?

[yhiaali3]

The main reason why governments fight Bitcoin is because it is decentralized. This means that they are unable to control the financial system. They do not want it. They want everything in their grasp. Also, because of privacy, they want to monitor and know all the financial transactions of individuals and institutions.
As for the impact of bitcoin on countries that adopt or accept bitcoin, I think it will be very positive, countries that adopt bitcoin and transfer their assets from fiat to bitcoin will have a high hedge towards future risks, which are particularly represented by the inflation that fiat is constantly experiencing, also accepting bitcoin will It causes a great economic movement in the country because of the need for infrastructure commensurate with the new financial system, also the ease of transferring money, fees and taxes will be easy to collect and all of this leads to the recovery of the economy.

[mindrust]

El Salvador adopted bitcoin and yesterday there were news saying that Turkey is on the brink of adopting Bitcoin as well. Some say the news were fake but I am not sure about that. Turkey is exactly the country that would adopt crypto.

Didn't Turkey put a ban on crypto currencies or was it just mining?

If I remember it right, the gov banned the businesses from accepting crypto. They didn't ban mining, they didn't ban ownership or trading. I believe that happened because it would make it a mess to calculate the taxes. The accountants/businesses may try some shady tricks to avoid paying their taxes and that's a big no no.