Almost All Countries Affected by Inflation, Opportunity for Bitcoin!

[lombok]

Perhaps the op was unaware or didn't factor that in, but El Salvador's fiat currency is the USD. The USD is pretty good at managing inflation, and that has a major impact, so I think El Salvador's inflation rate is probably due to that rather than due to Bitcoin.

Oh, I just found out and haven't continued my research in detail regarding El Salvador's currency. It's no wonder that El Salvador experiences low inflation because they use US dollars.
I admit that the US is very adept at controlling inflation, this is probably because of the USD's dominance over the entire country and even the world.

Investing in crypto in general is high risk, and Bitcoin is not much different (it is safer, but still high risk), so I wouldn't recommend to do it as a way to make sure money. But with such high interest rates, the alternative of doing nothing is proven to be much riskier.

We all know here that Bitcoin price volatility is wild. High risk = High reward. However, if you look back 10 years, Bitcoin was able to provide a large return on investment and could save inflation for some people who owned it.

You started a great topic dear, I did not come to think to compare the countries that adopted BTC legal tender with the countries that did not. That's a good comparison but your statement that High Gold or BTC (more assets) are the sole reason for the decrement in inflation is wrong. Because we (Pakistan) don't have high reserves of Gold, and we don't even accept BTC instead we have banned it. But our inflation rate decreased from 31.44 to 27.38. That's quite the opposite of what you are trying to imply here. But I got your point.

Bitcoin no doubt is the best hedge against inflation and we can store our money in it for a longer period of time without losing any penny. And it has been proved. But, talking about El-Salvador, they bought BTC and accepted it as a legal tender when BTC was around $50k means, they entered the market when it was already high. They are already at a loss but as for now market is going up so the comparison looks odd because they are to get some good improvements that are obvious.

And BTC doesn't have to care about countries' inflation, BTC doesn't need the attention of countries or entities (technically it does but hypothetically speaking) it doesn't, instead we need BTC.  

My assessment may be less careful and thorough, this is because I lacked in collecting data in a short time. After I researched, there are many factors that cause inflation in a country to be low outside the context of owning gold or Bitcoin in a country. The most important factor here is actually the economic growth of a country itself, and gold and Bitcoin are only additional factors that can provide more value.

The essence of suppressing inflation, I see, is that we can hit the global market with our country's products, our country's productivity in managing its human and natural resources.

[tjtonmoy]

Inflation is such an unavoidable thing. And Bitcoin, on the other hand, is still not the perfect solution. Inflation is not possible with Bitcoin having a limited supply, but price volatility is still an issue if you want to pick Bitcoin as a store of value. Because of this, many countries are still not comfortable enough with choosing Bitcoin as their primary option. Also, I don't think Bitcoin is on that level yet to prevent inflation for a whole country.

Inflation could be prevented when all the civilians provide together. Simply the government holding Bitcoin does not ensure the prevention of inflation. We need to improve our economy to prevent or fight against inflation. The moment we improve ourselves, that helps the country to grow. Bitcoin preventing inflation is an individual thing. If you own it then you can improve your condition. And as everybody does not use Bitcoin, it is still not possible to improve the whole country's economy that way and prevent inflation.

[Porfirii]

Investing in crypto in general is high risk, and Bitcoin is not much different (it is safer, but still high risk), so I wouldn't recommend to do it as a way to make sure money. But with such high interest rates, the alternative of doing nothing is proven to be much riskier.

We all know here that Bitcoin price volatility is wild. High risk = High reward. However, if you look back 10 years, Bitcoin was able to provide a large return on investment and could save inflation for some people who owned it.

We don't have to go so far in time: even nowadays, with the wild inflation some countries are suffering (can we call it hyperinflation yet? I hope we don't have to anytime soon), any asset different from fiat is safer than traditional savings. Of course, traditional investments like real estate, precious metals (until scientists don't invent a way to create cheap gold, which seems to be impossible) or bonds are much less riskier than cryptocurrencies, but in a few countries the national currency is performing worse than many shitcoins, and investing in Bitcoin would be a very reasonable, yet conservative choice.

[pooya87]

Oh, I just found out and haven't continued my research in detail regarding El Salvador's currency. It's no wonder that El Salvador experiences low inflation because they use US dollars.
I admit that the US is very adept at controlling inflation, this is probably because of the USD's dominance over the entire country and even the world.

El Salvador has had high inflation rates in the past even though they were using USD at that time too. The decreasing inflation rate (improving economy, decreasing crime rate, improving infrastructure, improving quality of life, decreasing unemployment, and a lot more) has a lot of other reasons that have nothing to do with using USD! It's all the works of their president who has good ideas and makes them happen.

Not to mention that there are many other countries that either use US dollar or peg their currency to the dollar. Many of them have high inflation rates like Zimbabwe (has been using USD ever since 2015) that had above 90% inflation from 2018 to 2022.

[Huppercase]

Inflation is such an unavoidable thing. And Bitcoin, on the other hand, is still not the perfect solution. Inflation is not possible with Bitcoin having a limited supply, but price volatility is still an issue if you want to pick Bitcoin as a store of value. Because of this, many countries are still not comfortable enough with choosing Bitcoin as their primary option. Also, I don't think Bitcoin is on that level yet to prevent inflation for a whole country.

Management is the only problem of inflation, when you look at the US inflation, there economy tumbled when they printed large junk of dollar bills, that was what happened when there were trying to be persuasive on everyone but do you see how they managed to reduce that figure to that value of 3.7%, this is how economy should function even when things cannot be perfect. However, there are some countries whose inflation has been on the rise since the post covid 19 time, they have literally battled inflation for months and nothing has change and that's because they are not good in managing inflation, Nigeria is just one of them.

Nevertheless, Bitcoin isn't the only solution to this crumbling economy. A country will die quickly if they out all her resources when bitcoin is crashing. An asset that is too volatile isn't a best way to kill inflation, it might even be worse if bitcoin crash as it use to when bad news happen.

Inflation could be prevented when all the civilians provide together. Simply the government holding Bitcoin does not ensure the prevention of inflation. We need to improve our economy to prevent or fight against inflation. The moment we improve ourselves, that helps the country to grow. Bitcoin preventing inflation is an individual thing. If you own it then you can improve your condition. And as everybody does not use Bitcoin, it is still not possible to improve the whole country's economy that way and prevent inflation.

When a country has too much insecurities, too much corruption, too much ethnicity,racism and religious differences they mostly used their entire resources to fight inflation instead of channeling it to other aspect of the nation. Having bitcoin alone cannot stop inflation as well, there are many things that cause inflation, the country can even decide to hold bitcoin and inflation might still be on the rise. Individually, bitcoin is good to hold but what if it has not appreciate in value when you need it, remember that inflation is measured every month, bitcoin don't grow every month.

[Lucius]

~snip~
If we look here, El Salvador has a relatively small inflation rate, namely 3.02 percent. We know that the country is starting to stockpile Bitcoin and mine Bitcoin at the same time.
Maybe at this time we cannot conclude that Bitcoin plays a role in suppressing inflation in this country. It takes several years of data and country consistency in adopting Bitcoin.
Just to the point, I want to hear your opinions on this.

I don't even consider those figures to be any kind of accurate indicator when it comes to real inflation - because I think that everyone feels inflation on their skin differently. What I want to say is that my country has inflation that is less than 10% (officially), although I have a real inflation of 30% in terms of my living expenses, so it is higher compared to the same time last year, and at least 40% and more compared to two years back.

Regarding El Salvador and their inflation, I believe it has nothing to do with investing in Bitcoin, because it is about 2500+ BTC, and I don't even know what their mining share is. That 3% inflation may be correct, or it may not be - but I am sure that the average inhabitant of that country lives no better than 2 or 3 years ago.

Whether Bitcoin is able to help countries overcome inflation, at least it provides options for growing a country's investment value.
Of course, I also know that there will be several policies or efforts to reduce inflation in a country.
However, if possible, are there opportunities such as hoarding gold and Bitcoin that can provide economic stability and reduce the inflation rate?

We should not forget that Bitcoin has its "bad" periods, and if something you invested in loses a significant part of its value compared to fiat, how will it protect it from inflation, at least when we talk about short-term periods? In the long term, there is a possibility for profit and some kind of insurance, but any country cannot do that with a few thousand BTC, it is simply too little to have a significant impact.

When you mention gold, look at the countries with the largest amount of gold and their inflation rates as well as debts in relation to GDP, and you will understand that even large gold reserves are not the solution to the problem. In addition, a few years ago there was talk of how some Italian politicians proposed to sell part of the gold and thus pay some debts, and it would then turn out that Italy mostly keeps its gold abroad, and that for any sale of the same, it should be received permission of the European Central Bank.

Italy just figured out that the country doesn't fully control its gold

[vv181]

Almost all countries in the world experience inflation. ~This is really worrying, in essence all countries are threatened and have the opportunity that their currency will become increasingly worthless due to this inflation.

Is there a way to deal with this if the financial system remains like this? Is it too late to change? Or has this already caught up?

Nothing is surprising and unexpected about inflations.

We know that the country is starting to stockpile Bitcoin and mine Bitcoin at the same time. Maybe at this time we cannot conclude that Bitcoin plays a role in suppressing inflation in this country. It takes several years of data and country consistency in adopting Bitcoin. Whether Bitcoin is able to help countries overcome inflation, at least it provides options for growing a country's investment value. Of course, I also know that there will be several policies or efforts to reduce inflation in a country. However, if possible, are there opportunities such as hoarding gold and Bitcoin that can provide economic stability and reduce the inflation rate?

As others suggested, there is hardly a correlation between country ownership of bitcoin with inflation reduction. The country's economy is too complex for a mere Bitcoin and Gold helps reduce it. It lessens the other significant economic policy factor that contributes greatly to its own country's economic outlook. Such as infrastructure, production, labour, etc. Those things surely have greater weight concerning the inflation values since they affect economic growth in a direct manner.

[famososMuertos]

Each economy is affected differently by that percentage value, 5 points above its average value in the US economy is "chaos", a value that many countries would like to have.

In the same way, the "help" that bitcoin represents is relative to that economy, on consequently, the bitcoin effect is long-term and not immediate.  And perhaps, as has been said before, bitcoin is not an antidote to governments and their bad practices, it is on the contrary a solution for the individual to gain control of their assets.

In that sense the opportunity is always for individuals.

[tjtonmoy]

When a country has too much insecurities, too much corruption, too much ethnicity,racism and religious differences they mostly used their entire resources to fight inflation instead of channeling it to other aspect of the nation. Having bitcoin alone cannot stop inflation as well, there are many things that cause inflation, the country can even decide to hold bitcoin and inflation might still be on the rise. Individually, bitcoin is good to hold but what if it has not appreciate in value when you need it, remember that inflation is measured every month, bitcoin don't grow every month.

This is exactly the point I was trying to make. Bitcoin is good and all but it is still not perfect. Very good for individual holding bitcoin. But when it comes to a country, it is not appropriate. Price volatility need to be considered first. You can't use something as a reserve if that's not usable in times of emergency. Bitcoin does not guarantee continuous growth. And for that it is difficult for countries to implement bitcoin in their economy.

I think the most important rule in bitcoin investment is to invest what we can afford to lose. A country can't involve something into bitcoin that the country rely on. So this proves that individual investment into bitcoin could be profitable and reasonable because we can afford to lose that or wait for it till it becomes profitable again. A whole country can't do that.

And for this I agree with you. Even if they hold bitcoin that doesn't ensure they won't suffer inflation. Bitcoin is not the only way of doing it. There are other option that are much effective than bitcoin.

[Twentyonepaylots]

Investing in crypto in general is high risk, and Bitcoin is not much different (it is safer, but still high risk), so I wouldn't recommend to do it as a way to make sure money. But with such high interest rates, the alternative of doing nothing is proven to be much riskier.

We all know here that Bitcoin price volatility is wild. High risk = High reward. However, if you look back 10 years, Bitcoin was able to provide a large return on investment and could save inflation for some people who owned it.

We don't have to go so far in time: even nowadays, with the wild inflation some countries are suffering (can we call it hyperinflation yet? I hope we don't have to anytime soon), any asset different from fiat is safer than traditional savings. Of course, traditional investments like real estate, precious metals (until scientists don't invent a way to create cheap gold, which seems to be impossible) or bonds are much less riskier than cryptocurrencies, but in a few countries the national currency is performing worse than many shitcoins, and investing in Bitcoin would be a very reasonable, yet conservative choice.

Quite agree with what the OP has said, bitcoin was able to provide a large return on investment 10 years ago, but how about those people who lose their money with bitcoin? I don't think that would save them from the inflation anymore.

Fascinated how scientists get to make cheaper gold, I mean logically it is useless because there are secondary metals like silver that also have a huge market value. In fact, some economists are calling the silver the next top asset of the future because gold is somehow losing its numbers in terms of market circulation, so probably the next thing that people will look for to buy out is silver. With the current market condition, or should I say global condition, investing in crypto is much better than keeping your fiat.

[Bitstar_coin]

As an individual, yes you can get good return of investment from btc during this time of unending inflation. But as a country, I doubt much will be achieved even if the country decides to go that part. Given the limited supply of btc, and most of it is already in the hands of different people, I doubt what is left will be enough to solve any inflation issues. A country needs more than just a btc investment to fight inflation.

[Pierre 2]

I think no country in the world is immune to global crisis and inflation. All governments printed extraordinary amount of money at pandemic era. Just to support people that cannot work. Now it all backfired, and its still continuous. Its reason why (usd getting weaker) Bitcoin and jump in price so soon. Bitcoin and even Gold stayed in their lower range price levels compared to inflation on American dollar.

[coupable]

https://tradingeconomics.com/country-list/inflation-rate-

As for most countries with inflation rates exceeding 50 percent (with the exception of Syria, which has not updated its data since 2021), I would have liked to know about the spread rates of Bitcoin and crypto. It is assumed that these countries are the ones that offer the most opportunities for Bitcoin to spread. Since there are no official statistics or studies that can be relied upon, some indicators that may be useful can be monitored.
One of the most prominent indicators available is the percentage of activity on peer-to-peer platforms (Binance, for example), as well as the percentage of attendance on crypto communication platforms.

[Sarah Azhari]

However, if possible, are there opportunities such as hoarding gold and Bitcoin that can provide economic stability and reduce the inflation rate?

It's not exactly those commodities that can make the country stabilize on economy. Because all systems the government today use the fiat system which can be handled by the strong outside countries who can handle the central bank. Yes, AS is a strong country which can handle The dollar. Even that money don't have underlying, but because many people trust it, so in this case Dollar controls it.

So, when we talk about bitcoin, that p2p electronic system still on the fiat system today, I rarely hear that 1 BTC = 1 BTC, but I often to hear that 1 btc = $30K, 1 btc= €28K, and etc. Because of that bitcoin has not been able to control inflation even have a country that legal it as currency. Because we live in a centralization system that can control the decentralization system.

[Rabata]

Almost every country has been affected by the effects of inflation due to the war, but those with a strong economic structure have been spared to some extent from its effects. But it has had devastating effects on countries that are not economically prosperous. Governments of developing countries have made this bad situation worse by printing new money to meet their needs. But the worst affected are the import-dependent countries that rely on purchases for everything.

As much as possible, the central bank of any country should prepare by reviewing the economic situation in advance. The major obstacle here is the hostile position of the government of each country. The central banks of almost all the countries of the world are not able to take the proper role despite the desire due to various government regulations. They must be freed to reduce the rate of inflation.

[lombok]

El Salvador has had high inflation rates in the past even though they were using USD at that time too. The decreasing inflation rate (improving economy, decreasing crime rate, improving infrastructure, improving quality of life, decreasing unemployment, and a lot more) has a lot of other reasons that have nothing to do with using USD! It's all the works of their president who has good ideas and makes them happen.

Not to mention that there are many other countries that either use US dollar or peg their currency to the dollar. Many of them have high inflation rates like Zimbabwe (has been using USD ever since 2015) that had above 90% inflation from 2018 to 2022.

The role of the president and government is very important in suppressing inflation and growing the economy. The policies made seem to be a stimulus if I assume based on your statement.

There is one question that is currently on my mind, can the level of corruption in a government or important officials in the government have an impact on increasing inflation?

Management is the only problem of inflation,

Your statement is correct. Maybe Bitcoin is not the right asset with its volatility as a solution to deal with inflation that could come at any time. Management is the most important source in dealing with inflation. The homework of governments in countries that have the highest inflation rates is to appoint vital government ministers who have the management ability to optimize existing resources.

[Kakmakr]

Well, one thing can help Lebanon ....

1. Stop supplying Hamas with weapons to fight the Israelis, so that your economy can improve, because those weapons are funded by money that could have been used to save their economy.

2. Switch over to using a more stable Fiat currency, like what happened with El Salvador ....or start buying some Bitcoins to beat inflation and to prevent hyper inflation.

Money are wasted on political egos and religious wars and the citizens of those countries are the ones that suffer the most.   

[Synchronice]

If we look here, El Salvador has a relatively small inflation rate, namely 3.02 percent. We know that the country is starting to stockpile Bitcoin and mine Bitcoin at the same time.

Maybe at this time we cannot conclude that Bitcoin plays a role in suppressing inflation in this country. It takes several years of data and country consistency in adopting Bitcoin.

Just to the point, I want to hear your opinions on this.

Whether Bitcoin is able to help countries overcome inflation, at least it provides options for growing a country's investment value.

Of course, I also know that there will be several policies or efforts to reduce inflation in a country.

However, if possible, are there opportunities such as hoarding gold and Bitcoin that can provide economic stability and reduce the inflation rate?

On average, countries that experience low inflation rates have large gold reserves.

https://wisevoter.com/country-rankings/gold-reserves-by-country/#argentina

Cheers, let's discuss..

How can bitcoin save any country from high inflation levels? An asset that can be manipulated positively or negatively by whales? If country continues money printing and if it gets harder or expensive to produce the product, then Bitcoin is not going to magically save you.
First of all, let's think about what decides bitcoin's price. Imagine, there is a pool and there are 100 bitcoins in this pool. At the moment, bitcoin has zero value because there is no money in this pool. Now let's throw 100K USD dollars. So, the market supply becomes 100K USD and the value of each bitcoin is 1000 USD. Now, if we took 20K usd from the pool, the value of each bitcoin becomes 8000 USD. You see? Price is not magically blowing charts, someone has to put money and the one who takes it out from pool earlier when it's full, that will see the most benefit.

[flyingcarpet]

However, if possible, are there opportunities such as hoarding gold and Bitcoin that can provide economic stability and reduce the inflation rate?

It may not be correct to associate Bitcoin with inflation. Bitcoin is an investment tool and if you bought it at a low price on time, you can make a profit when Bitcoin rises. Many countries are also purchasing Bitcoin and some are announcing it. Since Bitcoin is a valuable asset, states that realize its potential do not miss this opportunity. That's why they invest in Bitcoin.

Countries affected by inflation or any other situation invest in Bitcoin and hold it for a long time, waiting for it to appreciate, which causes States to make a profit from an investment instrument. This investment they make does not eliminate inflation or their plight.

[Negotiation]

Although all countries are affected by inflation it will damage the country's economy but will not have any effect on Bitcoin. Bitcoin can help improve the economy by investing in it if inflation affects the economy the suffering of middle and low income people will increase. And higher inflation can spell disaster for the entire country but it depends on the economic capacity of that country even if the price of gold reserves increases it will fall into inflation as it affects the economy controlled by the government and everything with fiat currency is damaged. But investing in bitcoin has nothing to do with inflation no matter how big the hurdle or why bitcoin will stay where it is. Most people are turning to bitcoin to escape the impact of the economy and further increasing the demand for bitcoin.