Bitcoin is the Best Option: Because of Dollar Rate Cost of Living is on the Peak

[DiMarxist]

What do you say on this matter?

Banknote and Digital Currency {Bitcoin} are all meant to buy things both in physical shops and online vendors. And countries are trying to adapt to the adoption of the digital currency upon all the restrictions many had laid on it but seen the benefits of it, some lift up the ban.

And many people were excited because bitcoin is decentralized and out of government control and bitcoin is volatile and it is store of value. So people became conscious and like bitcoin the more. If bitcoin transaction is low and retail businesses accept bitcoin as a method of payment. Dollar does devalue bitcoin so the price of things will not be influenced by dollar anymore. But the international market might still affect the price of things because there they would still used dollar for exchange unless the vendors are accepting bitcoin at that level as well. In my own understanding if bitcoin is adopted as a legal tender in my country the cost of living will reduce. The cost of in my country is on the peak that those who are receiving $80 as salary is nothing but a peanut which can't buy anything reasonable in the market again. Dollar is just playing with the Banknote in my country. And the best way is for the retail businesses to accept bitcoin if the transaction fee is low so that things will be okay for the poor. I am very happy that within this almost one year period I was not in the forum, I have invested some reasonable amount of bitcoin.
Welcome Back to the forum.

DiMarxist.

[ArikeTobi]

Its is through our decision making that we go through what we desire in the financial economy, we are quite well aware that a lot of people are struggling with the financial economy due to impeding inflation rate and the only means not to be affected is by getting our self the best alternative currency that could not suffer the injury other people are having currently with fiat, bitcoin can offer you the very best of choice in a decentralized  p2p network, all it takes is to understand how and learn the means to enjoy the benefits in bitcoin adoption over fiat.

[SatoPrincess]

Bitcoin is not the solution to your nation’s economic problems. Do not be delusional, bitcoin is not magic money that can help get rid of poverty. El Salvador made bitcoin a legal tender and invested heavily in Bitcoin yet the investment has not changed the conditions of those living below middle class. Bitcoin just crossed $50k, how do you suppose people who can’t afford to care for themselves to have enough spare money to invest in Bitcoin? What your country should focus on is their production capacity and implement policies they will help reduce inflation.  

[thecodebear]

Bitcoin is not the solution to your nation’s economic problems. Do not be delusional, bitcoin is not magic money that can help get rid of poverty. El Salvador made bitcoin a legal tender and invested heavily in Bitcoin yet the investment has not changed the conditions of those living below middle class. Bitcoin just crossed $50k, how do you suppose people who can’t afford to care for themselves to have enough spare money to invest in Bitcoin? What your country should focus on is their production capacity and implement policies they will help reduce inflation.  

For sure, Bitcoin doesn't solve every money problem. For people who can already make money, but don't make enough to save any money, Bitcoin can't do anything for them. Bitcoin is a great solution for a lot of problems, but it doesn't fix every single money problem in the world. It's just a currency. A lot of money problems have nothing to do with the currency, but rather with the economy/politics/culture/etc.

[Upgrade00]

In my own understanding if bitcoin is adopted as a legal tender in my country the cost of living will reduce.

Bitcoin can do nothing to reduce the cost of living, it's a digital currency which as you described is decentralized and a good store of value. Economies of nations are more complex than simply waving a magic wand and fixing it just like that, there needs to be good fiscal policies put in place and time allowed for growth.

On a side note, high cost of living is not always telling of a poor economy. There are countries with thriving economies but a very high cost of living.

[nakamura12]

What makes you think that Bitcoin is the best option to use when the expense or cost of living is at its peak or expensive?. I don't think that's true because it didn't do anything in my country about the expenses of living but it did help me in some way but if you are talking about making money in Bitcoin then what I can say is that it isn't a good choice to make it your main source of income to be used for daily expenses because it is not a get rich quick scheme because it will take time and patience before it will happen.

[sunsilk]

The fees of transaction for Bitcoin varies and that's the reason why many retailers will simply accept it whenever it's low but they always have an option to do LN. Although the payor will still shoulder the fees, many don't want to learn on how to use Bitcoin as a payment.

If you think that using Bitcoin as a legal tender can decrease the price of goods in your country. Maybe it won't still be if those products are imported and there's a huge cost coming from delivering it from point a to point b.

While a country's economic status is dependent to the leadership and how your country is being managed and helped. Having Bitcoin as a legal tender won't solve everything on an instant.

[Wexnident]

Wouldn't the price just naturally adjust? I think the "lowered cost of living" part is due to how Bitcoin has its own economy (unlike the dollar) but in the end, wouldn't the price automatically adjust to the usual high prices? Heck it might even be higher just so that merchants can accommodate the variances that Bitcoin has, which in most cases can be pretty high.

To compare, it's not like your $80 would change when converted to Bitcoin, it's still worth $80 at that point. And as for looking at prices with Bitcoin, as I said, it would naturally adjust according to whatever dollar equivalent it has, say $10, then no matter the BTC price, it'd always equate to $10 at the end of the day. I also don't see it realistic to put the entirety of your money as Bitcoin due to the high volatility, regardless of however much profit you can possibly make off of it since at the end of the day, it's just a "possibility".

[Adbitco]

At first i won't say that adopting bitcoin is bad but we must know that bitcoin is not the cause of inflation in our country and even though bitcoin is accepted as legal tender what changes does it cause over our dying economy?
Nothing changes, we import and export through dollars and we aren't gonna use bitcoin for that, even as that while using bitcoin the quantity or units would always be measured with dollars; I mean if you importing a goods worth $30k the conversion rate will be, BTC/USDT and then USDT/NGN so we still bounce back same place we are. We can't do without Fiat and fiat is everyone's local spending and not bitcoin, bitcoin is just a vessel to scale up transaction.

[OcTradism]

In my own understanding if bitcoin is adopted as a legal tender in my country the cost of living will reduce. The cost of in my country is on the peak that those who are receiving $80 as salary is nothing but a peanut which can't buy anything reasonable in the market again.

How can Bitcoin reduce cost of living in your country?

If you use Bitcoin as your payment method, on chain, for living expenses, you will have to pay usually expensive on-chain transaction fee. By using it as daily payment, you will pay more fee than with fiat currency through bank transfer or with cash.

Bitcoin is not here to solve problems from fiat currencies or to reduce cost of living in any country.

[Die_empty]

The cost of in my country is on the peak that those who are receiving $80 as salary is nothing but a peanut which can't buy anything reasonable in the market again. Dollar is just playing with the Banknote in my country. And the best way is for the retail businesses to accept bitcoin if the transaction fee is low so that things will be okay for the poor. I am very happy that within this almost one year period I was not in the forum, I have invested some reasonable amount of bitcoin.
Welcome Back to the forum.

DiMarxist.

The cost of living in your country is caused by different economic problems. Inflation, low demand for national currency, political instability, etc might be some of the factors affecting your country. Until some of these problems are fixed, Bitcoin might have no positive effect on the economy. People will still have to pay more for goods and services with Bitcoin if the country is going through inflation.

Your country might benefit from Bitcoin if they buy the currency and keep it for a long time. They could make a profit that can be used to tackle other economic problems. Bitcoin adoption could also attract some investors and create few jobs in your country. It could also help to reduce the cost of international financial transactions since it could bypass SWIFT and other international payment channels.

[Darker45]

Surely, your country's economy won't improve all of a sudden just because Bitcoin is implemented as a legal tender. But as far as cost of living is concerned, in an unlikely scenario that Bitcoin replaces fiat altogether, I think we will have a deflationary economy rather than an inflationary one. A currency that has a fixed supply, if not decreasing, versus a free-market demand that is ever growing, the prices of goods and services could only go down in terms of Sats.

[Poker Player]

Well, to me it is not surprising that the OP has no clue about economics, something that can be seen in the of comments trying to explain to him the gross errors he makes in the OP.

Bitcoin can do nothing to reduce the cost of living, it's a digital currency which as you described is decentralized and a good store of value. Economies of nations are more complex than simply waving a magic wand and fixing it just like that, there needs to be good fiscal policies put in place and time allowed for growth.

On a side note, high cost of living is not always telling of a poor economy. There are countries with thriving economies but a very high cost of living.

Surely the OP starts from the simplistic idea that if the fiat system and printing by central banks produces inflation, moving to a system with Bitcoin as legal tender would reduce inflation, which has its logic and is partially true, but it is too simplistic because one could not move overnight from one to another system and does not take into account other possible causes of inflation such as energy prices.

[Despairo]

In my own understanding if bitcoin is adopted as a legal tender in my country the cost of living will reduce. The cost of in my country is on the peak that those who are receiving $80 as salary is nothing but a peanut which can't buy anything reasonable in the market again. Dollar is just playing with the Banknote in my country. And the best way is for the retail businesses to accept bitcoin if the transaction fee is low so that things will be okay for the poor. I am very happy that within this almost one year period I was not in the forum, I have invested some reasonable amount of bitcoin.

Bullshit.

If you only get paid $80 per month, that means $1 is valuable for you, but Bitcoin transaction fee now cost for $1 per transaction, it means you're need to spend twice amount when purchase a small thing. Don't talk about lightning network or side chains, it's not yet well adopted right now, don't expect government or businesses to accept it in soon.

The main problem of poor people are the jobs, not the currency.
The main problem of developing countries are the human resources.

[adaseb]

Yeah inflation is getting very sticky. We got a bad cpi print when we assumed we would get a leaner number. What this means is that fed rates won’t happen till end of the year.

And as a result stocks and crypto took a small dip yesterday and later recovered. When rates stay higher longer then stocks will trade sideways or go down.

The issue is when fed cuts rates due to some economic crash then people will buy assets like crypto, real estate, stocks because the market will be flooded with new printed dollars.

[pooya87]

Cost of living is a comparative value not something based on some other foreign currency or Bitcoin. It should be compared with salaries.

For example if the cost of living is $100, if you get paid $120 you are good and cost of living can be called "low" but if you are being paid $80 the cost of living is considered high.
If you replace your national fiat currency with Bitcoin and cost of living becomes 100 satoshi and you get paid 90 satoshi, the cost of living is still going to be high.

In other words, cost of living being high is not something can be solved by changing the national currency. It is a problem that can only be solved by fixing the economy on a bigger scale and normalizing the salaries.

[davis196]

In my own understanding if bitcoin is adopted as a legal tender in my country the cost of living will reduce.

The cost of living in any country around the world has little to do with Bitcoin. If you live in a small and underdeveloped country, which has a low value national currency, then switching to BTC might provide some benefits, but I don't think that the overall cost of living in your country will drop. I still don't see any mass adoption of Bitcoin among the small business and the majority of the people. Bitcoin will keep being "digital gold", which would rather be adopted by big institutional investors. The retail businesses will stay away from BTC, due to various factors.
The transaction fees and the Bitcoin price volatility are the biggest problems, that represent a huge obstacle towards mass BTC adoption.

[EarnOnVictor]

Bitcoin is a very good option in cases like this, but not that it is just a good option because it is Bitcoin but it is a very good option because it is an asset that people can invest their money in and earn a return. This return can be a very good means to cover up for us during times of inflation when our country's currency will be getting useless in worth gradually. But this still depends on the country we are talking about. In my country, though Bitcoin will help, but it can't still measure up for the huge inflation that has happened and that is still happening. Bitcoin is trying, yet, the inflation is bitting so deeper than it.

And for you to know the gist, within a few years now, we are now talking about 5-10 times higher in price. This year alone (as new as it is), some goods and services have tripled in price, though some could still be doubled or almost doubled depending on what we are talking about. So, it is that bad. I just hope that things will be fine with time even as we use Bitcoin and another possible assets to try to hedge this nonesense inflation that is frustrating people daily.

[DiMarxist]

As I said earlier Dollar does affect the fiat currency but it does affect bitcoin to be devalued so if things are purchased with bitcoin will the price of things would be as it is? And I didn't say bitcoin will reduce inflation, I only said please understand me, since dollar causes the high cost of living, because of the exchange rate with the fiat currencies so if bitcoin is used, it will not be like that.

And for those who said bitcoin has nothing to do with the National Economy and bitcoin has nothing to do with the cost of living. You would have been a burden to the government or moving around looking for jobs from one place to another if you were not a bitcoin holder. @SatoPrincess from your comment, you are not a economist so you don't understand the important of bitcoin to a nation economy. If bitcoin has no benefits to a Nation Economy, Nigeria wouldn't lift the ban. The unemployment rate in the country is very high, but bitcoin came to liberate many youths from the poverty line and you are saying that bitcoin has nothing to do the nation economy. Do you know the Macro Economic Deficiencies Bitcoin has solved for individual in the world. And bitcoin can reduce cost of living because dollar does not affect bitcoin and dollar is the caused of cost of food items. I have been in this ecosystem for one year now and I know how I am now.

[m2017]

Banknote and Digital Currency {Bitcoin} are all meant to buy things both in physical shops and online vendors.

Yeah, that's how it was originally intended. But something went wrong. People began to use bitcoin as a means of investment, and not as a means of payment.

And countries are trying to adapt to the adoption of the digital currency upon all the restrictions many had laid on it but seen the benefits of it, some lift up the ban.

So, I’ll ask for details in the highlighted text.

Dollar does devalue bitcoin so the price of things will not be influenced by dollar anymore.

How does the dollar devalue a bitcoin? People themselves devalue bitcoin with their sell orders. The more sales, the more supply, the lower the price. This is a classic.

The dollar is still the yardstick for assessing the value of things. All over the world. Even within your and any other country. Even when the price tag is written in your national currency. Because any other currency is a repainted dollar.

In my own understanding if bitcoin is adopted as a legal tender in my country the cost of living will reduce.

Again the same question - how? The cost of living can be affected by an improvement in the country's economy. You idealize bitcoin and see it as a solution to everyone's financial problems.

Dollar is just playing with the Banknote in my country.

So this is not a dollar problem, but a problem of the banknote in your country, which is weak due to a weak economy and poor management of the financial sector. Don't look for the source of problems outside your country (in the dollar), for it is within the country.