Almost All Countries Affected by Inflation, Opportunity for Bitcoin!

[DrBeer]

....

The idea that "bitcoin will save the economy" and especially from inflation is unfortunately just a dream. But nothing more than that.
Most people who promote such a concept don't really understand how the real economy and the financial system of the state works. I'll ask one question - give me an example of at least one country, where they just solved the problems by introducing bitcoin as a financial instrument of the state ? I will answer for you - there is no example and will not be. In the framework of an experiment on a small group of people - it may be a good option. But for the STATE - no. This system will not work. For starters, I recommend studying what inflation is, what causes it, what kind of inflation it is. And then think - how can bitcoin solve these problems? And you will realize the answer, which will sound like this - "bitcoin does NOT solve the problem of economy". The problem is not the monetary unit, the problem is the economy itself ....

The El Salvador story - you won't be able to point to a single mechanism for the impact of Bitcoin hoarding and mining on inflationary processes in the country. No offense, but it's true.... You can try though

[Yamane_Keto]

The adoption of Bitcoin cannot bring about real changes for countries compared to the changes that can happen to individuals. The reason is that in the case of individuals, the economic problem can be solved with a few thousand or millions of dollars, but for countries, unless the internal economic problems and the balance of supply and demand are solved, it is not possible to build Bitcoin alone. To solve the problem, it is possible, in the best case scenario, to build a sovereign fund and invest Bitcoin in it, provided that the profits of this fund go toward development and that the government does not borrow from it.
There has been adoption of Bitcoin in El Salvador, but it does not appear to have changed as if it were done by individuals

[jrrsparkles]

Inflation exists with the fiat currency all the time and rich people have known it for generations that is why they never keep their portfolio in cash but on any assets that have the potential to grow or at least that are stale when the market crashes like gold.

It is not possible to make changes if you are a middle-class person and someone who is living where inflation is getting higher and higher, but having long-term goals will eventually be the key to staying from potential traps like debts The first thing needs to concentrate is financial literacy over anything from their early stages itself.

[Ucy]

Buying Bitcoin wouldn't help the currencies of inflation-ridden countries because they would be selling their currencies for Bitcoin whereas the opposite should be the case.
The countries should instead reduce the supply of their national currencies and increase their demand by saving them more & spending less, or by investing them in productive/profitable things. Less spending means the consumption pressure on goods and services would decrease and their prices would also decrease due to low demand for them. Better to spend the currencies on things for the production of more goods and services that are high in demand and causing inflation that typically happens when goods & services aren't enough to meet their high demand.  More productivity definitely helps national currencies become valuable because increased in  production of goods and services do reduce their demand pressure and helps prevent their prices from going up.

[pinggoki]

Of course, we all know everything advantageous if you were to use Bitcoin and HODL it. It's going to be different for every country but the important thing to see if it has really an effect is that there would be more countries to adopt it. We cannot really quantify if we have so little data. If there would be somewhat of a Bitcoin standard, that would be interesting as well.

If you can convert your bitcoins first to USD and then convert it to the country's currency, I think that we're going to be the same situation which is having a good standing since USD is pretty much a big money in many countries. I would disagree with little data though, there's 10+ years worth of bitcoin history so I don't think that if we were to do a dig or delve of data, we wouldn't probably consider it little.

Inflation definitely is a big problem but it's not like it's impossible to solve, I guess if the people and the government work together while the people are enjoying the benefits of bitcoin, we might see a day where we don't have to be worried about inflation that we evacuate our money on investments like bitcoin just so we can protect ourselves from that phenomena.

[DrBeer]

The adoption of Bitcoin cannot bring about real changes for countries compared to the changes that can happen to individuals. The reason is that in the case of individuals, the economic problem can be solved with a few thousand or millions of dollars, but for countries, unless the internal economic problems and the balance of supply and demand are solved, it is not possible to build Bitcoin alone. To solve the problem, it is possible, in the best case scenario, to build a sovereign fund and invest Bitcoin in it, provided that the profits of this fund go toward development and that the government does not borrow from it.
There has been adoption of Bitcoin in El Salvador, but it does not appear to have changed as if it were done by individuals

The problem is that Bitcoin for some reason is considered by some as a "magic wand" - waved and the economy is booming ! But it's not. The idea that bitcoin has a limited emission, many people take it as a solution to the problem of inflation. But they do not realize that inflation is different, and not only because of the stupidity of the government, which simply prints new "wrappers", but also caused by real problems that can not be solved without additional emission.  And this is only the "tip of the iceberg" of reasons why additional emission may be necessary or why inflationary processes occur. People's belief in "easy solution" always leads to such groundless confidence.....

[ndutndut]

Inflation exists with the fiat currency all the time and rich people have known it for generations that is why they never keep their portfolio in cash but on any assets that have the potential to grow or at least that are stale when the market crashes like gold.

It is not possible to make changes if you are a middle-class person and someone who is living where inflation is getting higher and higher, but having long-term goals will eventually be the key to staying from potential traps like debts The first thing needs to concentrate is financial literacy over anything from their early stages itself.

Correct. Inflation will definitely occur every year, just varying from low to high. What is clear is that inflation has a much worse impact on society than the fall in shares or the housing market because inflation has a direct impact on people's costs of living so that people immediately feel the negative impact and at times like this saving in cash is not a smart choice.

It is important to increase financial literacy at a time when inflation is getting higher, one of which is diverting money into bitcoin investment. Even though it is DYOR, no one can predict the future 100% correctly, what can be done is trying to analyze it based on data that already exists. Bitcoin definitely passes the test against inflation. because bitcoin was built on the basis of technology. The further our eyes look, technology will continue to develop.

[blockman]

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.

Not all countries are positive with Bitcoin and they're unlikely to invest on it and they don't see the help that it can do to its economies.

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.

It has nothing to do with inflation but the global impact that's being caused by inflation has also some indirect correlation to Bitcoin. We see global issues startled by something and we see the impact on it on different markets and one of it is Bitcoin. We may like it or not, sometimes there's an impact as well to Bitcoin.

[bettercrypto]

It's true, and I believe in the topic you raised: when the dollar falls, that's really an opportunity for Bitcoin to increase its price value in the market. And when the dollar rises in the market, the value of bitcoin falls. Because those two cannot go in the same direction.

That's what I noticed about that matter, actually. And we also know that the dollar rate also causes the inflation rate to increase in the market in all countries that experience it. And Bitcoin has never been the cause of the inflation rate problem to be honest.

[slapper]

....

The idea that "bitcoin will save the economy" and especially from inflation is unfortunately just a dream. But nothing more than that.
Most people who promote such a concept don't really understand how the real economy and the financial system of the state works. I'll ask one question - give me an example of at least one country, where they just solved the problems by introducing bitcoin as a financial instrument of the state ? I will answer for you - there is no example and will not be. In the framework of an experiment on a small group of people - it may be a good option. But for the STATE - no. This system will not work. For starters, I recommend studying what inflation is, what causes it, what kind of inflation it is. And then think - how can bitcoin solve these problems? And you will realize the answer, which will sound like this - "bitcoin does NOT solve the problem of economy". The problem is not the monetary unit, the problem is the economy itself ....

The El Salvador story - you won't be able to point to a single mechanism for the impact of Bitcoin hoarding and mining on inflationary processes in the country. No offense, but it's true.... You can try though

Changing currencies won't save the economy; instead, the whole banking system needs to be rethought. Yes, I agree that people who praise Bitcoin as the savior of all time might not understand how complicated state economies are. But wouldn't it be too simple to dismiss Bitcoin's promise based on what we know now? Financial systems change over time, so it's not fair to just write Bitcoin off right away

El Salvador is still a new project, so not all of its effects have been seen yet. The claim isn't that Bitcoin will get rid of inflation; rather, it's that it will give economies that are struggling another option. It's a choice, a hedge, and one of many tools you can use in finance. It could be seen as hasty to dismiss it without giving it a full investigation and understanding of its long-term effects

[LittleBitFunny]

The adoption of Bitcoin cannot bring about real changes for countries compared to the changes that can happen to individuals. The reason is that in the case of individuals, the economic problem can be solved with a few thousand or millions of dollars, but for countries, unless the internal economic problems and the balance of supply and demand are solved, it is not possible to build Bitcoin alone. To solve the problem, it is possible, in the best case scenario, to build a sovereign fund and invest Bitcoin in it, provided that the profits of this fund go toward development and that the government does not borrow from it.
There has been adoption of Bitcoin in El Salvador, but it does not appear to have changed as if it were done by individuals

The problem is that Bitcoin for some reason is considered by some as a "magic wand" - waved and the economy is booming ! But it's not. The idea that bitcoin has a limited emission, many people take it as a solution to the problem of inflation. But they do not realize that inflation is different, and not only because of the stupidity of the government, which simply prints new "wrappers", but also caused by real problems that can not be solved without additional emission.  And this is only the "tip of the iceberg" of reasons why additional emission may be necessary or why inflationary processes occur. People's belief in "easy solution" always leads to such groundless confidence.....

Bitcoin is a panacea to cure all diseases such as eradicating poverty, reducing unemployment, and saving a country's currency...I am waiting to see if people will nominate bitcoin to solve wars and bring peace to the world or not  .

Indeed, there are many causes of inflation, the uncontrolled printing of money by the Government is just a part of the iceberg, many people do not understand and can only blame the government's money printing. Simply put, managing and balancing supply and demand of an economy with billions of people is not easy. It's not as simple as us sitting here and criticizing everything.

[lombok]

The idea that "bitcoin will save the economy" and especially from inflation is unfortunately just a dream. But nothing more than that.
Most people who promote such a concept don't really understand how the real economy and the financial system of the state works. I'll ask one question - give me an example of at least one country, where they just solved the problems by introducing bitcoin as a financial instrument of the state ? I will answer for you - there is no example and will not be. In the framework of an experiment on a small group of people - it may be a good option. But for the STATE - no. This system will not work. For starters, I recommend studying what inflation is, what causes it, what kind of inflation it is. And then think - how can bitcoin solve these problems? And you will realize the answer, which will sound like this - "bitcoin does NOT solve the problem of economy". The problem is not the monetary unit, the problem is the economy itself ....

The El Salvador story - you won't be able to point to a single mechanism for the impact of Bitcoin hoarding and mining on inflationary processes in the country. No offense, but it's true.... You can try though

Well this makes sense, a country's economy is very complex. And bitcoin is only a small part and is also influenced by the existing economic system. I say this not because I changed my view from the thread I made, but I am here to learn and observe from other people's perspectives which can enlighten my thoughts about inflation and Bitcoin in it.

There has been adoption of Bitcoin in El Salvador, but it does not appear to have changed as if it were done by individuals

In the case of El Salvador regarding the legalization of Bitcoin, we don't really know whether this adoption aims to ensure that every citizen uses Bitcoin as payment for daily activities, including salary payments? Or the country makes purchases and holds or even mines as a hedge reserve. This remains a question, while the head of state also calls on his government to buy Bitcoin.

Buying Bitcoin wouldn't help the currencies of inflation-ridden countries because they would be selling their currencies for Bitcoin whereas the opposite should be the case.
The countries should instead reduce the supply of their national currencies and increase their demand by saving them more & spending less, or by investing them in productive/profitable things. Less spending means the consumption pressure on goods and services would decrease and their prices would also decrease due to low demand for them. Better to spend the currencies on things for the production of more goods and services that are high in demand and causing inflation that typically happens when goods & services aren't enough to meet their high demand.  More productivity definitely helps national currencies become valuable because increased in  production of goods and services do reduce their demand pressure and helps prevent their prices from going up.

From your statement, I conclude that what BRICS is doing now is the first step in fighting inflation for each of its member countries. Correct? Therefore, this could be a good solution for every country that joins as a member. No wonder many countries are now interested and joining BRICS. There, state money is highly respected because the system is that country A, which wants to buy goods from country B, must pay with country B's currency. This makes that country's money experience increased demand and circulate widely. Unlike today, which is dominated by the USD and other countries' currencies are experiencing pressure on the dollar.

[bettercrypto]

It is true that all countries are affected by the inflation rate; in fact, all people are facing a crisis like this when it comes to the issue of inflation. And there is also the fact that as the inflation rate increases, we have the opportunity to earn Bitcoin and other cryptocurrencies that have potential in the market as well.

I'm not an economist expert, but I really feel the inflation rate problem. If the leader of the country is good, he will be able to control it so that the people who are under him will not suffer much in a crisis like this one.

But governments are the main responsible party for the increase on inflation, and while there are different reasons for inflation to go up, the most powerful of all is an increase on the money supply, and the money supply is completely controlled by governments.

So we cannot hope for governments to solve this problem as they are the ones responsible for creating it, and this means that if people want to protect themselves from the negative effects of inflation then they need to find a way to do this on their own.

You have a point in what you said. Even so, no matter how much the rate was raised, there is a strong reason why the government did it. Maybe if they don't do that, the country's economy could collapse completely if they become negligent toward the government, and that is a bigger problem for sure.

Inflation is also a problem in our country, but in spite of everything that is like this situation, our president is still able to properly manage the interest rate of inflation. That's why everything is still under control, if I look at it so far.

[poodle63]

to combat inflation simply investing in bitcoin that only if we are not in bearish, many people still think of combating the inflation using gold which honestly quite effective but only works for that not increasing the capital for profit but just keeping the value of wealth stable and not getting eaten by the inflation.
in my opinion, bitcoin is still the best among the best investment out there, the rate of returns if someone is good at analysing the market and making best entry would be tremendous.
its unlike gold that just grows very slowly, bitcoin is growing few fold of its ath in previous bullrun.
thats what I think the main reason why bitcoin is most effective to go against the inflation, because the yield is just better.

[Webetcoins]

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?

Bitcoin hoarding or investments in Bitcoin on a country level wouldn't really help reduce inflation within the country because Bitcoin doesn't always keep going up and the rate of inflation can only be reduced if the country gets a higher income from whatever investments they are making so that they can use that money on their country's import and export or any other sector that might help them reduce the inflation to at least some level.

Bitcoin is a volatile asset, and a country can obviously not risk a great amount by investing it in Bitcoin just to see that their investment got devalued after a short period of time after they made the investment just because the market crashed and we all know that it happens in every cycle and the country can obviously not wait for a whole cycle to finish before they sell the assets.

[kingvirtus09]

Buying Bitcoin wouldn't help the currencies of inflation-ridden countries because they would be selling their currencies for Bitcoin whereas the opposite should be the case.
The countries should instead reduce the supply of their national currencies and increase their demand by saving them more & spending less, or by investing them in productive/profitable things. Less spending means the consumption pressure on goods and services would decrease and their prices would also decrease due to low demand for them. Better to spend the currencies on things for the production of more goods and services that are high in demand and causing inflation that typically happens when goods & services aren't enough to meet their high demand.  More productivity definitely helps national currencies become valuable because increased in  production of goods and services do reduce their demand pressure and helps prevent their prices from going up.

Buying Bitcoin depends on the individual, even though we are still in a time when the inflation situation in our country is not good. But still, from another angle, even if we are facing a crisis due to inflation, Bitcoin will still help us so that we can survive by getting profit from trading skills.

This is just my understanding: because the price increase is given, we can't stop it, so what we have to do since we can't stop it is better to prepare or face it by having a solution in this situation in our country where we live.

[wxa7115]

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?

Bitcoin hoarding or investments in Bitcoin on a country level wouldn't really help reduce inflation within the country because Bitcoin doesn't always keep going up and the rate of inflation can only be reduced if the country gets a higher income from whatever investments they are making so that they can use that money on their country's import and export or any other sector that might help them reduce the inflation to at least some level.

Bitcoin is a volatile asset, and a country can obviously not risk a great amount by investing it in Bitcoin just to see that their investment got devalued after a short period of time after they made the investment just because the market crashed and we all know that it happens in every cycle and the country can obviously not wait for a whole cycle to finish before they sell the assets.

Bitcoin is not ready for governments around the world to start pouring money in this market, not that they want to do it anyway.

However while this is the case for governments, a completely different scenario is the one that presents itself when it comes to individuals, if someone has some spare money they can do a lot worse than to invest in bitcoin, as not only bitcoin is a great asset in which to invest, now we are getting closer to the halving and to the bull run, and once that happens whatever money they invest will increase significantly during the next months and years.

[Bitcoin_people]

We know that using and holding Bitcoin is the most convenient and profitable. This Bitcoin is used in every country and just to enjoy the benefits of completing economic transactions. Countries that have not made Bitcoin legal also trade Bitcoin for security. Also USD is best for managing inflation, and what I think Bitcoin does better for inflation. So Bitcoin helps a lot in overcoming the economic rate of inflation in different countries and it solves all the inflationary problems.

[goaldigger]

We know that using and holding Bitcoin is the most convenient and profitable. This Bitcoin is used in every country and just to enjoy the benefits of completing economic transactions. Countries that have not made Bitcoin legal also trade Bitcoin for security. Also USD is best for managing inflation, and what I think Bitcoin does better for inflation. So Bitcoin helps a lot in overcoming the economic rate of inflation in different countries and it solves all the inflationary problems.

Some are true here but Bitcoin can’t guarantee any profit at all because your profit will always depend on your strategy and on how you approach the market. There’s also no proof that Bitcoin solves the problem of inflation because still many are suffering from this despite of adapting Bitcoin. Well, this market serves as an alternative and yeah the risk are high that’s why this can be rewarding too.

[BitcoinTurk]

Local currencies belonging to countries and their central banks don't have any maximum supply nor do they have any upper limits for printing more of them today. Although in previous years local currencies were printed by the central banks depending on the gold reserves of the countries, unfortunately, this isn't the case today and the printing of local currencies by the central banks continues without slowing down without any reserves. Naturally, due to the increase in supply in the market, local currencies lose value and this causes inflation. Unfortunately, since there is no centralization in Bitcoin and there is a maximum supply, it isn't possible to increase the maximum supply by any institution or organization. This causes almost negligible inflation for Bitcoin.

To comment, excluding technology, areas of use, ease of use and all other factors, the only reason for the inflation difference between local currencies and Bitcoin is the maximum supply amount. Since the more a product is, the less valuable its price is, local currencies, whose supply increases in the market day by day are constantly defeated by inflation but Bitcoin is almost unaffected by this situation due to its maximum supply.

Governments that took on the task of distributing money to the people confined to their homes during the pandemic period began to print more local currencies without any reserves in order to meet this and unfortunately, due to the subsequent economic conditions they couldn't control this. This caused local currencies to lose value and succumb to inflation.