How can third-world countries counter inflation using bitcoin?

[Smack That Ace]

They couldn't beat inflation nor did it help them. Those people who live in these third-world countries have little chance to invest in Bitcoin, they'll take fiat instead and suffer inflation.

Generally, using Bitcoin is not the solution to inflation as it comes whether we like it or not. The only way to help us is to make more investments and sources of income. I'd say that those who live in poor countries will suffer the most while those who live in rich countries take advantage of the situation and become richer.

Why do people in the third world have few opportunities to invest in bitcoin? I'm also from the 3rd world and I know many other people are also investing in bitcoin because of inflation and currency devaluation in my country.

Bitcoin can help us fight inflation but only partially and cannot rely on it completely. Furthermore, it only has an impact on individuals, it cannot have any impact or help on the inflationary economy of a country or the world. Some people are exaggerating bitcoin more than necessary. Bitcoin is just currency, just an asset like gold, how can it help the country's economy from inflation while gold does not?

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[serjent05]

"Countries" can not do that, individuals may.

Actually, they can. The point is that in 3rd world countries usually there is no banking system at all and it is very complicated and expensive for them to create one from scratch, especially when the monetary system is bad. Therefore, it may be way easier for them to make a crypto friendly financial infrastructure from the very beginning while all other countries gonna have to adopt crypto into their existing system which takes way more efforts.

Are you sure there is no banking system in developing countries?  Have you ever checked your country's financial system?  I think it is an exaggeration to say that developing country has no banking system.  Maybe there ar lots of people who are unbanked but to say a country without a banking system is ignorance at its best.

Bitcoin at its current state cannot counter inflation when we are talking about a national-level event, but as an individual, it may be.  Since I believe Bitcoin activity is too minimal to have an impact on a national level.

[dezoel]

First of all, inflation and currency devaluation are two different things. Inflation is when the prices of goods and services go up significantly, and currency devaluation is when a country's currency starts losing value, I know that these two are directly proportional to each other but they are different things, and what you have explained in your post isn't about countering inflation but it's about finding a way to stay safe from currency devaluation through Bitcoin.

Even in third-world countries, the biggest victims of inflation are the poor population of those countries, and by poor I mean those who don't have access to electronic devices or internet connections, who barely eat a meal twice a day, and who barely make it through if the inflation goes higher than their capacity to survive, and Bitcoin can't really do anything for them since you need resources to be able to make use of Bitcoin and other helpful technologies.

[0t3p0t]

No, the country itself is less likely to be affected by inflation but "We" the people were. We can counter it ourselves if we have extra funds to invest in precious metals/stones and of course the one you just said "Bitcoin" before inflation will hit. Since you are referring to third world countries, we expect more and more less fortunate individuals will be affected and has no time to react when inflation will arrive at everyones doorsteps. My country's monetary reserves is not backed by Bitcoin or gold and if it was I don't really think if things will go right during inflation not so sure.

[uneng]

Bitcoin can be a powerful currency against inflation on long term, however, on short term it offers serious risks for holders, as the price is constantly fluctuating, what can happen downside pretty often during a bearish market, like the one we are facing right now. I imagine a country which decided to invest part of its public funds into BTC would suffer serious criticisms from oppositors inside the country, who would incite the population against the government through potential rebellions.

It has already happend in El Salvador, but could be much worse in a country with a history of aggressiveness among its citizens. To make a decision like that, the government has to make sure it's a popular proposal accepted by the largest portion of the society.

[Alpha Marine]

Bitcoin is an asset, and like other assets could be used as an investment, this is the best way I like people to view Bitcoin, not as a hedge/counter against inflation, or else it might break the heart of many during the bearish season.

I think I agree that Bitcoin is somehow a counter against inflation. An asset can also be a counter against inflation and you rightly stated that Bitcoin is an asset.
Inflation rate in my country is officially at 25% right ght now, (it's actually much higher than that but the government cover it up with lies). So imagine I try to save money for a long term in my local currency, what do you think will happen to the value of that money after let's say 2 to 3 years? Considering the fact that the inflation rate keeps rising? 

We can never truly avoid inflation because we're going to buy stuff and those things are going to be very expensive but you can give your savings a standing chance against inflation if it's in Bitcoin.

[Asuspawer09]

Bitcoin alongside other cryptocurrencies has aided the economic development of many countries. Bitcoin is typically used for online transaction and businesses in third world countries despite widespread poverty, this is because people can easily connect to the internet and participate in the crypto economy in many developing countries such as India and continent like Africa have high cryptocurrency adaptation rate. After purchasing bitcoin through platforms accessible to their countries, bitcoin holders in third world countries can trade Bitcoin for profits or hold onto their tokens as an investment. Inflation which is characterised by devaluation of currency alongside increasing price of goods and services, this has made people to turn to cryptocurrency like bitcoin an asset that maintain its value over time to hedge  against inflation.

For sure inflation is already a big problem all over the globe and we can see even powerful countries are experiencing problems with inflation, I guess it is obviously a problem by the government since they are just the ones who print money, even here in my country it is a big issue and I can clearly notice how the basic things increase its price and a certain amount of money can only buy a few things unlike back in the day where the value of our currency was still good, probably a 500pesos is still a big amount of money, but today it wasn't enough for 1 day on your whole family or for sure 1-week food.

One of the things that you could do is to invest your money not just save it since if we are just going to put our money in the banks it is surely going to get hit by inflation and over time the value is just going to decrease over time, Putting our money to something like Bitcoin, cryptocurrency or gold could surely counter the inflation, for sure there are some exception on Bitcoin since by its nature it only has 21 million supply overtime we could easily expect the market price to increase its value theoretically, that's what we all believed but still it's a risky invest since it wasn't guaranteed that it's going to happen and we dont know it is possible that the price could reach zero at some point.

In my opinion, the trick is just to save enough, if you save a good amount of money invest it in assets so that you can avoid and counter inflation. Just save enough probably some savings like emergency, and do retirement, insurance, etc.

[Ucy]

The third-worlders deserve some respect. Most of them are not investing with free money. They work for it.   And they are relatively in similar economic category with first & second worlders who are categorized as middle/third class citizens, and their wealth and income are relative to prices of things in their countries. Things typically cost more in first & second world countries, they compensate that with high wages.   And what they earn from their Bitcoin investments is relative to how much they invest.

 The purchasing power of those from first and second world countries only become stronger when they buy things from third world countries.


The high number of Bitcoin/crypto investors from third-world countries is mainly due to how Bitcoin/crypto is promoted or spreads there. Not necessarily due to poverty.

In regards to how they can counter inflation using Bitcoin, well, I think less spending and more investing/saving in Bitcoin could help. Too much spending or high demand with low supply can cause inflation. So, more savings and less spending should work.

[eightdots]

Bitcoin is an asset, and like other assets could be used as an investment, this is the best way I like people to view Bitcoin, not as a hedge/counter against inflation, or else it might break the heart of many during the bearish season.

I think I agree that Bitcoin is somehow a counter against inflation. An asset can also be a counter against inflation and you rightly stated that Bitcoin is an asset.
Inflation rate in my country is officially at 25% right ght now, (it's actually much higher than that but the government cover it up with lies). So imagine I try to save money for a long term in my local currency, what do you think will happen to the value of that money after let's say 2 to 3 years? Considering the fact that the inflation rate keeps rising? 

We can never truly avoid inflation because we're going to buy stuff and those things are going to be very expensive but you can give your savings a standing chance against inflation if it's in Bitcoin.

If we save in local currency, the value of our money will decrease day by day. There are many ways to preserve the value of our money. One of these ways is Bitcoin. It's important to note that when the price of Bitcoin falls, you can't protect the value of your money. If you are a long-term Bitcoin investor, Bitcoin will protect the value of your money and allow you to make a profit, just like before.

When we invest, we also need to know the risks. That's why we need to know every detail about what we're investing in.

[GeorgeJohn]

Bitcoin alongside other cryptocurrencies has aided the economic development of many countries. Bitcoin is typically used for online transaction and businesses in third world countries despite widespread poverty,

Their something I want some of us to understand concerning bitcoin, I know quite well that bitcoin is all about a digital currency, it's currency is something that can use every where you are, currently many people who is in outside countries doesn't send money home through bank right now, what people do about sending money right now to their beloved ones from another country, I will send the money directly to bitcoin because it will faster get to the place I wanted, so while people especially government is been against bitcoin is because they feel that bitcoin will be use for money laundering across other nations and that is while many nations fails approve for bitcoin to be a legal tender. The aspect of online transaction many uses bitcoin because its easier to fund an online payment instead of using either debit card or credit card.

[justdimin]

Bitcoin can be a powerful currency against inflation on long term, however, on short term it offers serious risks for holders, as the price is constantly fluctuating, what can happen downside pretty often during a bearish market, like the one we are facing right now. I imagine a country which decided to invest part of its public funds into BTC would suffer serious criticisms from oppositors inside the country, who would incite the population against the government through potential rebellions.

It has already happend in El Salvador, but could be much worse in a country with a history of aggressiveness among its citizens. To make a decision like that, the government has to make sure it's a popular proposal accepted by the largest portion of the society.

I think that can still be fine, because countries are large and waiting for them is easier than waiting when you are a regular person like us. Those nations could invest hundreds of millions of dollars, even billions of dollars and not be worried about it, and can wait for decades if they have to or want to and that would be fine.

Most of them have gold that way too, tens of billions of dollars worth of gold, just sitting idle at vaults not doing anything really. This is why I really do not think that it would be a very tough deal, it should be quite possible. I get that it may not be that simple but it could be very well made and should be entertaining for many people as well, I personally would prefer something like that for my nation.

[kro55]

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Most of them have gold that way too, tens of billions of dollars worth of gold, just sitting idle at vaults not doing anything really. This is why I really do not think that it would be a very tough deal, it should be quite possible. I get that it may not be that simple but it could be very well made and should be entertaining for many people as well, I personally would prefer something like that for my nation.

That's not true, every country has a reserve budget and they are diversified into many different asset types, of which gold is always the highest priority. Because gold is stable and does not lose value over time, it is natural for them to hoard gold because the budget can be used at any time and in any emergency. But if it were bitcoin, it would be a big problem if by the time the government needed money for an emergency and bitcoin was dumped, the government would easily default. Countries that default on their debt are mostly countries that do not have stable budgets. Bitcoin is actually so volatile, it cannot fit into a country's budget.

[Natsuu]

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or hold onto their tokens as an investment.

It should be noted that tokens shouldn’t be used as investment because most of them do not have a long retention period and as such they should be as just things that can be traded. An investment is something that can be hold for a long time and only bitcoin has that potential

People nowadays mistook the idea of investing. Investing is mainly done for preserving wealth and is very far from making money or wealth. It just sounds the same but they two are completely different ideals in finance. With Bitcoin's volatility, yes it has a greater advantage compared to other risk assets in terms of value appreciation. On the other hand, it also requires a greater risk of losing money faster.

Crypto indeed is fast phase investment which is also why people most of the time think that investment is just easy money. It isn't. Dealing with investment is such as trading is the hardest way of making easy money.

[Synchronice]

Bitcoin alongside other cryptocurrencies has aided the economic development of many countries. Bitcoin is typically used for online transaction and businesses in third world countries despite widespread poverty, this is because people can easily connect to the internet and participate in the crypto economy in many developing countries such as India and continent like Africa have high cryptocurrency adaptation rate. After purchasing bitcoin through platforms accessible to their countries, bitcoin holders in third world countries can trade Bitcoin for profits or hold onto their tokens as an investment. Inflation which is characterised by devaluation of currency alongside increasing price of goods and services, this has made people to turn to cryptocurrency like bitcoin an asset that maintain its value over time to hedge  against inflation.

Were you in a dream-like state when you were posting this?
First of all, in third world countries, it's not common to have access on computer, smartphone and on internet. Second, people in third world countries rarely know about Bitcoin (excluding El Salvador). Also, another problem that arises here is that people, especially in third world countries rarely know how to securely store their bitcoins.
Also, money doesn't come out of thin year in crypto world. In order for you to profit, someone has to buy bitcoin and pay a lot, no one is silly enough to put money in bitcoin pool and let poor countries cash out from this pool. It's not as easy thing as you make it sound.

[Blitzboy]

Bitcoin alongside other cryptocurrencies has aided the economic development of many countries. Bitcoin is typically used for online transaction and businesses in third world countries despite widespread poverty, this is because people can easily connect to the internet and participate in the crypto economy in many developing countries such as India and continent like Africa have high cryptocurrency adaptation rate. After purchasing bitcoin through platforms accessible to their countries, bitcoin holders in third world countries can trade Bitcoin for profits or hold onto their tokens as an investment. Inflation which is characterised by devaluation of currency alongside increasing price of goods and services, this has made people to turn to cryptocurrency like bitcoin an asset that maintain its value over time to hedge  against inflation.

For sure inflation is already a big problem all over the globe and we can see even powerful countries are experiencing problems with inflation, I guess it is obviously a problem by the government since they are just the ones who print money, even here in my country it is a big issue and I can clearly notice how the basic things increase its price and a certain amount of money can only buy a few things unlike back in the day where the value of our currency was still good, probably a 500pesos is still a big amount of money, but today it wasn't enough for 1 day on your whole family or for sure 1-week food.

One of the things that you could do is to invest your money not just save it since if we are just going to put our money in the banks it is surely going to get hit by inflation and over time the value is just going to decrease over time, Putting our money to something like Bitcoin, cryptocurrency or gold could surely counter the inflation, for sure there are some exception on Bitcoin since by its nature it only has 21 million supply overtime we could easily expect the market price to increase its value theoretically, that's what we all believed but still it's a risky invest since it wasn't guaranteed that it's going to happen and we dont know it is possible that the price could reach zero at some point.

In my opinion, the trick is just to save enough, if you save a good amount of money invest it in assets so that you can avoid and counter inflation. Just save enough probably some savings like emergency, and do retirement, insurance, etc.

With prices going up all over the world, its a rough ride, isnt it? I know exactly what you mean. Everyday transactions make it very clear that money is losing its value. I get it. 500 pesos used to feel like a mini-treasure box, but now its just a small amount of money, not even enough to cover a few daily costs.

The old ways of banking arent doing a good job of keeping the value of our hard-earned money. I totally agree with you that  Bitcoin and gold are ways to protect yourself from inflation. Even though there are only 21 million Bitcoins, which shows how rare they are, they do come with their own risks. Its kind of like walking a wire, right? You weigh the possible benefits against the obvious risks. We stay on our toes because we dont know what will happen next. But hey, if there's no risk, there's no gain, right?

[MFahad]

If we save in local currency, the value of our money will decrease day by day. There are many ways to preserve the value of our money. One of these ways is Bitcoin. It's important to note that when the price of Bitcoin falls, you can't protect the value of your money. If you are a long-term Bitcoin investor, Bitcoin will protect the value of your money and allow you to make a profit, just like before.

When we invest, we also need to know the risks. That's why we need to know every detail about what we're investing in.

With bitcoin your money will not only be saved but will also increase in value after some time. The value of money as a local currency deteriorates because of inflation as every country where there is inflation the devaluation of its currency take place very soon.

Bitcoin is the only way through which your money will not be effected by inflation so choose bitcoin to save your time and economize your money. There are also other ways through which the value of your cash remain save like that of gold but bitcoin is more secure and fast mechanism of saving and enhancing value of cash than gold.

Bitcoin price evaluation can help you to better understand the market which you can do with the help of watching video and joining certain group created by experts of trust.

[Silberman]

If we save in local currency, the value of our money will decrease day by day. There are many ways to preserve the value of our money. One of these ways is Bitcoin. It's important to note that when the price of Bitcoin falls, you can't protect the value of your money. If you are a long-term Bitcoin investor, Bitcoin will protect the value of your money and allow you to make a profit, just like before.

When we invest, we also need to know the risks. That's why we need to know every detail about what we're investing in.

Even if someone were to invest in bitcoin at the peak and then they had to suffer the upcoming bear market, bitcoin can still be a better alternative than a fiat currency that is going through hyperinflation, as a currency experimenting 100% inflation per year loses half of its value every year, so even after a few years of a bear market you will still do better than those that just held their fiat, and if the inflation was higher than that then the better bitcoin performs compared to that currency, and when we add that not everything is negative and bitcoin can also skyrocket, then there is no comparison between the two.

[Hispo]

...

The high number of Bitcoin/crypto investors from third-world countries is mainly due to how Bitcoin/crypto is promoted or spreads there. Not necessarily due to poverty.

In my case it is about how Bitcoin can help to save money even in an environment of corruption and authoritarianism. Let us agree that in many of the cases where Bitcoin has had success in developing countries, it is because there is a clear lack of trust in traditional banking and the circulating FIAT. It is the scenario in Argentina, Venezuela, Nigeria, etc.

Since Bitcoin cannot be touched by crooks, only by the rightful owner of the wallet, then it is certainly attractive for those who live under repression. 

Bitcoin may not be the ultimate solution for all of us who are in such situation, but it helps a bit. 

[jeraldskie11]

When cryptocurrency is part of your daily lives, you can tell that Bitcoin is the best currency to invest with especially if you're going to hold it for a long time, it might be volatile but you can trust that your money is safe here. Here in my Country, we are experiencing inflation because demand of the goods are immediate higher than the supply which could make the prices higher. Now, the reason is the running out of goods.

Bitcoin has a great advantage than using fiat currency because it's digital currency where you can easily buy or paid things to develop infrastructure in your country which is in very in need to counter or to recover from inflation. Bitcoin is a "buy-time".

[jasonjm]

Third-world countries can counter inflation using Bitcoin. Devaluation of the currency is a major problem, and using Bitcoin, they can avoid this devaluation of money, and BTC can be used as a hedge. By regulating Bitcoin, they can influence the general public to invest and store their money in Bitcoin and fight inflation. Facilitate buying and selling of Bitcoin by making a crypto exchange. By implementing a tax on crypto earnings, they generate revenue for welfare projects.
The major concern in doing all this is Bitcoin volatility. Mostly, the less fortunate countries are not implementing this idea because bitcoin prices can not be predicted, and they can lose money. Financial literacy is another major concern in these countries.