Bitcoin and the economy

[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.

I firmly believe that only those governments who want to support their people and look for their bright future will accept the bitcoins and promote them. Governments who don't want to look at their people and only want to eat their money by applying high taxes will never accept bitcoin and stop everyone from utilizing it. Everybody knows that bitcoin has many benefits, and we can quickly earn extra profit. However, these governments are blind and act like they don't know about anything related to cryptocurrencies. Bitcoin has a high potential to cover any economy. With the help of bitcoins, we can remove poverty from one nation, but they're blind.

I'm afraid it is not about people. Neither is it about their welfare nor their bright future. This is only about governments trying to preserve their power and dominion. So if a government allows the use of Bitcoin, it does not necessarily mean such government cares about the people and their future. It could simply mean something else.

Anyway, I guess the view that we could quickly earn extra profit from Bitcoin might not really be what Bitcoin is truly all about. I also doubt that Bitcoin has a high potential to cover any economy. Neither do I believe that Bitcoin could be used to eradicate poverty.

[danherbias07]

Anyway, I guess the view that we could quickly earn extra profit from Bitcoin might not really be what Bitcoin is truly all about. I also doubt that Bitcoin has a high potential to cover any economy. Neither do I believe that Bitcoin could be used to eradicate poverty.

The growth of those who believe in that "extra profit" motto had been exponential, thanks to those who have been spreading wrong information about Bitcoin on social media. Bitcoin being a currency was suddenly forgotten and it became an asset or a tool for high yield investments scams.
OP was even affected by that rampant mistake and the proof is how he asked it.
Staking was the only option to create more coins but that means taking the higher risk. Bitcoin, on the other hand, doesn't have that kind of option and if anyone says there is, that's obviously a scam.

[Furious 7]

I'm afraid it is not about people. Neither is it about their welfare nor their bright future. This is only about governments trying to preserve their power and dominion. So if a government allows the use of Bitcoin, it does not necessarily mean such government cares about the people and their future. It could simply mean something else.

Anyway, I guess the view that we could quickly earn extra profit from Bitcoin might not really be what Bitcoin is truly all about. I also doubt that Bitcoin has a high potential to cover any economy. Neither do I believe that Bitcoin could be used to eradicate poverty.

It is quite logical, because the government is also human and they have a greedy nature even more than ordinary humans and they adopt I think the reason for the welfare of the people is not the first reason.
I don't think the government is bad because indeed there must be some good ones, but what I see and what I feel now is that more of them are bad than those who actually work for the welfare of the people.
I also quite agree that bitcoin can't really cover the economy because it's not the job of bitcoin itself, I think

[Silberman]

El Salvador hardly bought any bitcoin at all, I think it might have been something in the tens of millions which has virtually no effect on the economy. No, it was not due to Bitcoin adoption that the debt/GDP ratio spiraled out of control. It was just due to COVID where the entire global economy tanked, and they have since not recovered. Nearly every country that began to limit their economy ran into uncontrollable debt problems, and they did not have the GDP to support such spending. Ironically enough, had BTC adoption occurred much earlier, they wouldn't have ran into an issue with the debt.

Banks and governments are not above lying when it comes to their interests, it is obvious that if El Salvador begins to face some economic issues those issues are going to be immediately blamed on bitcoin and anything that has any remote connection to it, they will do this simply because they are scared that people are trying to find a way to avoid their policies which have created so much inflation around the world, and if they have to lie to achieve this they will do it, as they did by blaming all the inflation we are going through to supply issues, something that we know cannot be true.

[TheEconomists]

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.

What is ban is ban which means it illegal to use by the citizens that country as simple as that brother. If the government of a country has made Public that the use of Bitcoin ban and her citizens are still making use or accepting it at a legal tender it means they aren't obeying the law of the land which should not be encouraged.

[Hellen234]

I think every countries ought to embrace Bitcoin.

[RealMalatesta]

what you need to know is that it is forbidden by religion and not by the state, because this is from several studies by religious leaders from certain countries that prohibit bitcoin as a transaction tool, and usually this is applied by countries with a majority population. population. . residents who are religious and solely directives from state officials to prohibit them according to a belief system that is considered a reference.

I don’t remember seeing in the news that there is any religion that has forbidden people from making use of cryptocurrency. In countries where Bitcoin has been banned, it is usually the government that does it, and it has nothing to do with religion.

And moreover I don’t see how making use of Bitcoin or investing in it is a sin, how exactly is that even a sin? Religion will only forbid you from doing things which are considered a sinful act in the face of God, and Bitcoin is not a sin. Bitcoin is simply a technology that was even introduced to help our lives, and I can bet that a lot of us here that our lives changed when we started making use of bitcoin.

[SquallLeonhart]

What is ban is ban which means it illegal to use by the citizens that country as simple as that brother. If the government of a country has made Public that the use of Bitcoin ban and her citizens are still making use or accepting it at a legal tender it means they aren't obeying the law of the land which should not be encouraged.

what you need to know is that it is forbidden by religion and not by the state, because this is from several studies by religious leaders from certain countries that prohibit bitcoin as a transaction tool, and usually this is applied by countries with a majority population. population. . residents who are religious and solely directives from state officials to prohibit them according to a belief system that is considered a reference.
In fact, in general, countries that currently prohibit bitcoin have never issued prohibition rules contained in written constitutional rules, but only have opinions in the media.

I never really understood religion becoming a bit of mix with the law. Religion is a personal thing right? I mean it should be a personal thing, why would something between me and my god should be a law? And for some nations, it is actually like that, they end up being governed by religion and this results with a lot of problems.

If it was like that all around then I would totally understand it to a point but most of the time the rich and powerful end up doing things that are not allowed in religion, and they just keep the public under their religious law. This is the problem for crypto as well, maybe in some parts of the world it will be banned because of religion or said to be banned because of religion and meanwhile rich would invest in it anyway.

[andriarto]

what you need to know is that it is forbidden by religion and not by the state, because this is from several studies by religious leaders from certain countries that prohibit bitcoin as a transaction tool, and usually this is applied by countries with a majority population. population. . residents who are religious and solely directives from state officials to prohibit them according to a belief system that is considered a reference.

I don’t remember seeing in the news that there is any religion that has forbidden people from making use of cryptocurrency. In countries where Bitcoin has been banned, it is usually the government that does it, and it has nothing to do with religion.

And moreover I don’t see how making use of Bitcoin or investing in it is a sin, how exactly is that even a sin? Religion will only forbid you from doing things which are considered a sinful act in the face of God, and Bitcoin is not a sin. Bitcoin is simply a technology that was even introduced to help our lives, and I can bet that a lot of us here that our lives changed when we started making use of bitcoin.

something new, like bitcoin, which made it famous all over the world, of course caught the attention of scholars, even though there were actually differences of opinion between several scholars. I think that as long as the government still gives space to try, we will return the opinions of different scholars to ourselves, whether we will carry on this business and continue or not, according to our personal conscience.

[Kakmakr]

You will see that most of the countries that banned Bitcoin has some kind of Autocratic leadership or authoritarian government. The reason why they are banning Bitcoin is simple, because it threatens their control of their people.

They do not want people to have financial freedom or for them to think for themselves. They want to control their money in the corrupt Banking system and they want their people to be poor and dependent on them. 

Bitcoin gives people financial freedom and the choice not to be controlled. Their financial transactions are also pseudo anonymous and most governments hate that. 

[tulusikhlas]

You will see that most of the countries that banned Bitcoin has some kind of Autocratic leadership or authoritarian government. The reason why they are banning Bitcoin is simple, because it threatens their control of their people.

They do not want people to have financial freedom or for them to think for themselves. They want to control their money in the corrupt Banking system and they want their people to be poor and dependent on them. 

Bitcoin gives people financial freedom and the choice not to be controlled. Their financial transactions are also pseudo anonymous and most governments hate that. 

Yes, that's right, here we have freedom over our own finances without anyone controlling us. That's why the government is afraid of it, they don't want to lose something that they have been controlling for so long.
Now many are aware of it, so they are increasingly aggressive to create waves of fear to every user.
On the other hand, those who create fear, I think they are also taking advantage, just like they also own assets in crypto, only they don't publish it.

[AicecreaME]

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?

I thought of this too. It was puzzling me before why some countries do not allow the use of cryptocurrency or anything related to it in their country despite the opportunities and benefits it could offer them. Until it dawned on me that not all of us have the same perspective, not all of us have the same level of understanding and open-mindedness, and not all of us have the same priorities. Each country's goals differ from one another depending on who their leaders are and what kind of governance they have. We really can't please all of them and let them join our community if they don't want to. I guess we just have to do our part which is to inform and encourage, then it would be up to them if they would take the opportunity handed to them or reject it. Either way, it would be good because if they would join, our community would grow bigger, if they won't it's okay as well because we don't want people who are entering to be here half-baked.

But to answer your question, honestly speaking, the effect wouldn't be manifested right away. I think the result would take some time to be felt in their economy most especially in those developing countries. Although it's good that they made a bold and courageous move to make bitcoin legal tender and make crypto, in general, an allowable and legal entity because that could have an impact in terms of taxes that they could collect as well as the demand of the people to use the certain features to experience convenience.