More Money Problems that Bitcoin Solves

[DrBeer]

I asked the question many times, but NEVER received a reasoned, logical answer. The question is extremely simple: how, and how will the real economy really benefit from the transition to Bitcoin?

Unfortunately, I have to state a fact - many supporters of Bitcoin as the currency on which the economy works, simply do not understand how the economy of countries works, what the central bank is, how the budget is formed, where inflation comes from, and much more ...

The simplest example of misunderstanding: bitcoin will "destroy inflation". Absolute stupidity. Bitcoin itself is indeed a deflationary "currency". But the economy, the economy and the state budget are formed in a completely different way, and a deflationary model is simply not possible in most real situations. Try to simulate and you will understand that the implementation of such a model will instantly lead ... to impoverishment and a drop in living standards, especially for the poor and socially unprotected segments of the population. And it will not solve the problems of the economy ...

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[noorman0]

When will they learn that bitcoin may be helpful? What are they waiting for?

neither bitcoin nor CBDC are simply payment alternatives to currencies. After all, hasn't bitcoin been coexisting with fiat all along? And what changes did you see? Increasing the individual's standard of living is not a significant change in this realm. The changes the government hopes for should reach the entire population.
In fact anyone can use bitcoin for something "freely" (decentralized) without waiting for government approval if they think it will solve a financial problem.

[BitcoinPanther]

When will they learn that bitcoin may be helpful? What are they waiting for?

I believe government are already aware of the benefits of Bitcoin but they are hesitant because they are not ready to cede to decentralized currency like Bitcoin because at the current system the government and central bank has the power to control the money supply and interest which they think is the key factor in managing the economy.  shifting to decentralized currency like Bitcoin will likely take those power away.

But as Bitcoin and other cryptocurrencies become more widely use it is possible that the government will consider or will be more open to allowing them to co-exist with traditional fiat currency. 

When will they learn that bitcoin may be helpful? What are they waiting for?

neither bitcoin nor CBDC are simply payment alternatives to currencies. After all, hasn't bitcoin been coexisting with fiat all along? And what changes did you see? Increasing the individual's standard of living is not a significant change in this realm. The changes the government hopes for should reach the entire population.
In fact anyone can use bitcoin for something "freely" (decentralized) without waiting for government approval if they think it will solve a financial problem.

Not all countries are welcoming Bitcoin and other cryptocurrency others are even planning to ban them because it disrupts their traditional finance system and make people ignore their released CBDC.  Just like in the case of India where the Reserve Bank of India Governor Calls for an Outright Crypto Ban

[Jawhead999]

Usually a government or rich people have a strategy where they want to make more money with all of their power. Example a big country ban Bitcoin, so it will make Bitcoin price drop since their citizens would high likely sold their coins in panic situation. When Bitcoin price is cheap and they have a lot money, they will buy a lot Bitcoin. Then during bull season, the government might revise their law and unban Bitcoin. So when Bitcoin price is high, they can easily sold most of their coins and repeat.

But after all it's just a conspiracy, although I think somewhat it's true, but they just using different method.

[mvdheuvel1983]

Bitcoin is frequently misunderstood to be an inflation hedge. In fact, it serves as a safeguard against currency depreciation.
Although more bitcoins cannot be created, the huge price swings are just a result of this absence of fundamental worth technically speaking,
and these values are heavily controlled by the large holders, something that US authorities admitted when they rejected ETFs in spot bitcoin.

Therefore, the smart money responds quickly when the Fed tries to combat inflation by tightening the money supply rather than by cooling the demand bubble.

[BitDane]

I asked the question many times, but NEVER received a reasoned, logical answer. The question is extremely simple: how, and how will the real economy really benefit from the transition to Bitcoin?

Unfortunately, I have to state a fact - many supporters of Bitcoin as the currency on which the economy works, simply do not understand how the economy of countries works, what the central bank is, how the budget is formed, where inflation comes from, and much more ...

The simplest example of misunderstanding: bitcoin will "destroy inflation". Absolute stupidity. Bitcoin itself is indeed a deflationary "currency". But the economy, the economy and the state budget are formed in a completely different way, and a deflationary model is simply not possible in most real situations. Try to simulate and you will understand that the implementation of such a model will instantly lead ... to impoverishment and a drop in living standards, especially for the poor and socially unprotected segments of the population. And it will not solve the problems of the economy ...

In a technical perspective adopting Bitcoin will give the following benefit:

• Financial inclusion - makes it easier for people who are underbanked or unbanked to access financial services.
• Reduced Transaction cost - without the need for intermediaries, international transfers are way too cheaper.
• Improved Security and immutability - with cryptography, transaction are secure and cannot be tampered with reducing the risk of fraud.
• Increased Transparency - since the blockchain that serves as ledger is public, it increase the transparency and accountability of the transaction
• Protection against inflation - with the fixed supply of Bitcoin, it help to protect  against inflation by ensuring that the currency value is not eroded overtime
• Decentralization - since Bitcoin operates in a decentralized network , it can provide a certain degree of immunity from the government and central bank financial policies.

and in the contrary it also gives a negative impact in its current situation like:

• Volatility - due to high volatility, it is risky and dificult for businesses to price their goods and services
• Lack of Regulation - due to lack of regulation it is more vulnerable to fraud and money laundering  and make the business hard to comply with AML and KYC regulation
• Complexity - this makes it difficult for average person to understand and use.
• Limited Acceptance - at the current state of adoption, Bitcoin is not yet fully adopted making it hard for businesses to accept and consumers to use it.
• Environmental Impact - to secure the network, bitcoin needs miners and consumes a significant amount of energy which can possibly have a negative impact to the environment.
• Legal and Tax Implications - at the current state, Bitcoin is not legal to other countries, and it maybe subject to different regulations and taxes in different jurisdiction which can make it difficult for businesses to operate and for individuals to comply with tax laws.
• Accessibility - people who are not tech-savvy might find it hard to access Bitcoin which can limit Bitcoin's potential to reach wider audience.
• Digital Divide - to access Bitcoin network, people need an internet which make it difficult for people without reliable internet smartphones or laptops to participate in the economy.

So basically government are hesitant to adopt Bitcoin and cryptocurrency because of the possible negative implication it gives since the regulatory framework for Bitcoin and other cryptocurrency are yet to be formed.

We have seen on the pros and cons that Bitcoin at its current state is more likely inclined with individual/group benefits that is not regulatory compatible while the negative impact happens when used to business that requires government regulation.  And due to the need of internet and technical knowledge it will be bothersome to people who are not tech-savvy and have poor access to internet.  

I might say at the current state of technology and internet propagation, the world isn't ready yet to embrace Bitcoin in full or shift to digital currency, only few countries can provide the needed requirement for Bitcoin to fully operates.


Sources:
https://www.sofi.com/learn/content/benefits-of-crypto/#:~:text=Transactional%20freedom%2C%20security%2C%20and%20ease,widespread%20use%20or%20adoption%20yet.
https://www.fool.com/investing/stock-market/market-sectors/financials/cryptocurrency-stocks/benefits-of-cryptocurrency/
https://cs.stanford.edu/people/eroberts/cs181/projects/2010-11/DigitalCurrencies/disadvantages/index.html
https://www.investopedia.com/terms/c/cryptocurrency.asp

[kryptqnick]

Bitcoin isn't banned by many countries, actually, so in a way, it is allowed to coexist with fiat. That being said, it's usually allowed to coexist more with stocks than the local fiat, as Bitcoin is recognized as a means of payment in only a handful of countries. Many countries just haven't settled on a particular policy regarding Bitcoin, so they aren't against allowing it along with fiat necessarily.
Inflation is only partially resolved with Bitcoin because the worst consequence of inflation is devaluation of money, and while Bitcoin isn't susceptible to hyperinflation, it can lose as much value (at least, in midterm perspective) as pretty unstable fiat currencies suffering from inflation.

[slapper]

Pretty simple. Governments have control over their people/economy through their local currency. Them adopting bitcoin would make it highly likely for them lose the control that they had to a certain extent.

Governments are in a difficult position because they want to have a firm grip on their economies but also avoid falling behind technologically in the crypto space. This is why several national governments are exploring CBDCs (Central Bank Digital Currencies) or their own digital currency initiatives. This manner, they may maintain some semblance of economic autonomy while also retaining a technological edge. It's something to keep an eye on, for sure

[molsewid]

Why aren't the governments of the world seeing the greater money problem that bitcoin, and not even their CBDC, can solve? Can they at least think about allowing bitcoin to coexist with their money? I'm not asking them to abandon their fiat. Can they stop hindering Bitcoin's development and begin exploring its possibilities? It hurts that they are aware of the potential of bitcoin and have decided to ignore it. The issue of inflation, which destabilizes the world, can be resolved by Bitcoin. Additional money can be printed, but more bitcoins cannot be created. Inflation occurs when there is more money in circulation than is required. This can never happen with bitcoin.

- Inflation occurs when the money supply of a country grows more rapidly than the economic output of a country.
- The Federal Reserve changes the money supply by buying short-term securities from banks, injecting capital into the economy.
- The quantity theory believes that the value of money, and the resulting inflation, is caused by the supply and demand of the currency.
Quote sourcehttps://www.investopedia.com/ask/answers/042015/how-does-money-supply-affect-inflation.asp

When will they learn that bitcoin may be helpful? What are they waiting for?

Because by regulating that fiat will give them power and authority, it helps them to control people their wealth they can even gain more cuts by asking people for taxes. Bitcoin gives us freedom and many things that make us more human I mean, they cannot control us , they may not know on what things we are invested with and what do we do with our money because they cannot trace it nor regulate it.

[Leviathan.007]

Most governments resist using bitcoin to coexist with ordinary money because they want to create tough monetary policies and financial scenarios that would have a negative impact on the people. This is done to ensure that they can keep the citizens at bay.

 If not tell me why won't any country not adopt bitcoin as a legal means of payment considering the potential that it possesses.

Every day, the IMF and the WORLD BANK will announce how this or that will have an impact on the global economy, yet bitcoin can easily fix half of the issues they are predicting.

We all know and governments are also aware of the bitcoin benefits for the world and the problems it can save in the economic systems but even if the governments are aware of these benefits still they mostly resist agist bitcoin and especially if they have a strong currency they will not allow something like bitcoin or any other cryptocurrency to take their place because the decentralized system behind the bitcoin can be dangerous for them because they won't be able to take everything under control as they do usually.

[tygeade]

I asked the question many times, but NEVER received a reasoned, logical answer. The question is extremely simple: how, and how will the real economy really benefit from the transition to Bitcoin?

Unfortunately, I have to state a fact - many supporters of Bitcoin as the currency on which the economy works, simply do not understand how the economy of countries works, what the central bank is, how the budget is formed, where inflation comes from, and much more ...

The simplest example of misunderstanding: bitcoin will "destroy inflation". Absolute stupidity. Bitcoin itself is indeed a deflationary "currency". But the economy, the economy and the state budget are formed in a completely different way, and a deflationary model is simply not possible in most real situations. Try to simulate and you will understand that the implementation of such a model will instantly lead ... to impoverishment and a drop in living standards, especially for the poor and socially unprotected segments of the population. And it will not solve the problems of the economy ...

Not that it's true, I disagree with it, but I can give you the answer of some people who support this idea that I talked before. The main idea is that they believe fiat is controlled by governments (true) and bitcoin is not controlled by anyone (logically true, financially wrong) which is why if the whole world stopped using fiat, and suddenly overnight goes into crypto usage instead, we would have our own currency that nobody meddles with and would be able to actually make a good income and live comfortably instead of living in the fiat world where rich gets richer and poor gets poorer.

It's true that the world we live in sucks, but I disagree with them because bitcoin wouldn't help in this regard.

[Fortify]

Why aren't the governments of the world seeing the greater money problem that bitcoin, and not even their CBDC, can solve? Can they at least think about allowing bitcoin to coexist with their money? I'm not asking them to abandon their fiat. Can they stop hindering Bitcoin's development and begin exploring its possibilities? It hurts that they are aware of the potential of bitcoin and have decided to ignore it. The issue of inflation, which destabilizes the world, can be resolved by Bitcoin. Additional money can be printed, but more bitcoins cannot be created. Inflation occurs when there is more money in circulation than is required. This can never happen with bitcoin.

- Inflation occurs when the money supply of a country grows more rapidly than the economic output of a country.
- The Federal Reserve changes the money supply by buying short-term securities from banks, injecting capital into the economy.
- The quantity theory believes that the value of money, and the resulting inflation, is caused by the supply and demand of the currency.
Quote sourcehttps://www.investopedia.com/ask/answers/042015/how-does-money-supply-affect-inflation.asp

When will they learn that bitcoin may be helpful? What are they waiting for?

Have you been asleep for the last 10 years? Most countries that do not have overly oppressive governments like the Americas, Europe, Australia and parts of Asia are quite open to allowing it to co-exist with their own currencies. Quite rightly they just want to understand the cash flows that are taking place because many countries use taxes as a way to run public services - like putting roads down or paying for the police force. If people are avoiding contributing to that while running a business via cryptocurrency then they are getting an unfair advantage against neighbors and the rest of the country. None of the points you raise have any relevance to allowing cryptocurrency or keeping a stable economy.

[serveria.com]

Why aren't the governments of the world seeing the greater money problem that bitcoin, and not even their CBDC, can solve? Can they at least think about allowing bitcoin to coexist with their money? I'm not asking them to abandon their fiat. Can they stop hindering Bitcoin's development and begin exploring its possibilities? It hurts that they are aware of the potential of bitcoin and have decided to ignore it. The issue of inflation, which destabilizes the world, can be resolved by Bitcoin. Additional money can be printed, but more bitcoins cannot be created. Inflation occurs when there is more money in circulation than is required. This can never happen with bitcoin.

- Inflation occurs when the money supply of a country grows more rapidly than the economic output of a country.
- The Federal Reserve changes the money supply by buying short-term securities from banks, injecting capital into the economy.
- The quantity theory believes that the value of money, and the resulting inflation, is caused by the supply and demand of the currency.
Quote sourcehttps://www.investopedia.com/ask/answers/042015/how-does-money-supply-affect-inflation.asp

When will they learn that bitcoin may be helpful? What are they waiting for?

Bitcoin is so much superior to any fiat that they're afraid of it because as soon as people will understand it, they will dump fiat for good and never look back. But the truth is people are a bunch of easily manipulated, brainwashed, propaganda puppets. They're waiting for the government to allow them to use it as legal tender (like El Salvador did). Only then global hyperbitcoinization is possible.

[Hydrogen]

The best scenario IMO is to encourage free market competition, to emulate industry advancement afforded to consumers by the intel vs AMD rivalry. Competition can incentivize progress. Within the span of a few decades we have witnessed desktop PCs advance from having 64 megabytes of RAM. To having 8 gigabytes of RAM as a standard. Competition can definitely have some positive implications for society. Perhaps these positive trends can carry over to bitcoin being a competitive asset in global markets.

Bitcoin could produce incentive for the financial establishment progressing to better implement blockchain and other modern technologies.

We have already seen stock brokers adopt low commissions on trades and other things which were pioneered by crypto exchanges. Perhaps bitcoin and crypto have other things to offer the world.

[TheUltraElite]

Why aren't the governments of the world seeing the greater money problem that bitcoin, and not even their CBDC, can solve?

Governments dont  want every problem to be solved. Unless you have a problem you cannot get votes to run an election. Get my point?

Can they at least think about allowing bitcoin to coexist with their money? I'm not asking them to abandon their fiat.

Bitcoin is already coexisting with fiat. CBDC is how they think fiat could be digitalized into a crypto-like thing and make the population accept that and move the bitcoin users to CBDC.

Can they stop hindering Bitcoin's development and begin exploring its possibilities? It hurts that they are aware of the potential of bitcoin and have decided to ignore it. The issue of inflation, which destabilizes the world, can be resolved by Bitcoin. Additional money can be printed, but more bitcoins cannot be created. Inflation occurs when there is more money in circulation than is required. This can never happen with bitcoin.

But a deflationary economy is difficult to maintain. In reality we do not want that and the current way of how fiat and bitcoin coexist is adequate in my opinion. The problem is bringing in CBDC, which we have to observe how they work. Beyond that I feel the next big thing that we should focus on is the acceptance of bitcoin in bigger eCommerce merchants - to force governments to allow bitcoin trading.

I have a gut feeling that once CBDCs get introduced, eCommerce giants will pop in as that being the mode of transaction using bitcoin and the CBDC as intermediary.

[Hyphen(-)]

They are called governments because of the leadership and control they pursue over their citizens and their entire wealth; therefore, why did you expect them to fully accept a decentralized and transparent currency over which they will have no control? I believe it is against their will; they want to continue receiving a small percentage of our savings, which can only be done while we use Fiat currencies; however, once we switch to Bitcoin, the government will never be able to achieve this, and as a result, they will always prefer fiat over Bitcoin.

[naira]

Bitcoin overcomes people's finances, improves their lives, especially the economy, which can make someone who is poor with strong determination equal to the rich. Freedom over your own finances and the government doesn't like that. They can't cut crypto taxes, they can't make the state coffers grow. Therefore Bitcoin is always used as a label for money laundering in their eyes. Because the government has to print more money for Bitcoin disbursement. While CBDC is just an evolution of fiat, its nature and use remain the same in controlling how many assets are owned by the community.

[o48o]

Exploring possibilities of bitcoin? Possibilites like not having a change to print more money as a buffering system to protect governments from catastrophes?

Just because bitcoin would be a tool for you fighting against inflation doesn't mean it would be such for any government. At the moment it's too volatile for any government to take a risk even investing into it. And inflation isn't really a problem as long as it stays in control and don't spiral out of control. It's only problem if you think fiat money as long time storage for wealth, which it's not. It's a tool for transactions and with a high liquidity and being not so volatile it's a good tool for that.

[fullhdpixel]

When will they learn that bitcoin may be helpful? What are they waiting for?

The government are very well-informed people and definitely they know better that bitcoin is something helpful but at the same time not helpful to them but to the general masses who they wish to keep under their control. If you are wondering what they are waiting for, they are waiting to see if bitcoin and cryptocurrency in general will just die down and go away due to market pressure or any other activity since they have refused to accept it, but we all know that that is not happening.

They won't be on their positions if they are not knowledgeable people. It's only sad that they didn't use this gift to greatly improve their country. I think these people are just selfish and maybe they are also corrupt too. People on their country will surely put a hate on them for this and I think many are forced to do the unwanted thing.

It's where they illegally access and use BTC using some kind of a tool like VPN. Maybe it's true that those governments are waiting for BTC to die and to make the process faster, they have created their own versions of Bitcoin which is called CBDC but I don't think people will be encouraged to use this. BTC is what they want not this sh8t.

[Fivestar4everMVP]

The government know the power bitcoin possess, they know that Bitcoin can solve all the money problems we face as countries, thinking they don't is a misconception.

They know all that there is to know about bitcoin and how it's adoption can put an end end to inflation, but their problem with bitcoin is that bitcoin is decentralized, they can't and will never have control over it, to them, bitcoin is actually a threat for with bitcoin, they will lose one thing which they value so much, and that is power over the financial system, power over the people, power over businesses and many more, this is why several of them are really reluctant to accepting bitcoin as a means of payment, also because they are yet to figure out how to really have control over all the bitcoins within their country which I also don't think is possible.