Why inflated countries should adopt Bitcoin to help boost their economy.

[South Park]

As crypto enthusiasts, we love Bitcoin and want to see it as a legal tender. But we always consider Bitcoin as a currency, and a few also consider it an asset. I agree with both; primarily, it's a currency, and when we store it, we may also consider it an asset since it has a store value. In this perspective, I don't think Bitcoin could play a role in reducing the inflation of a country. Most of the inflation happens due to corruption. So Bitcoin won't stop the corruption or war. Bitcoin could just serve as a currency, even if it becomes legal tender. Trading Bitcoin will be easier, but due to the high transaction fees, merchants will face difficulties accepting Bitcoin. However, we want Bitcoin to become legal tender so we can use it everywhere. 

Exactly I think OP is mistaken when he actually said a country in inflation can be saved by using bitcoin as legal tender yes bitcoin is an hedge against inflation but only on one aspect which is to curb excess supply of the fiat currency which usually leads to the devaluation of the currency Bitcoin fixed supply can definitely safe that. But there are many ways that get countries into inflation like the high demand of products and goods or low supply or manufacturing capacity by commpanies due to raw materials shortages. This are definitely not a legal tender problem that bitcoin can solve

This, there are some countries out there facing a challenging situation when it comes to their economies, but this cannot be fixed so easily, if that was the case then I would expect economists on the country figuring out sooner or later the way to solve their issues in that particular way, and while bitcoin is without a good tool for the individual investor to deal with the high inflation they are suffering in their country, it is not possible for a government to do the same.

[Assface16678]

Countries with poor economy and also other infrastructures like politics, laws will need to resolve those problems first.

Bitcoin can not, never be able to help such countries to boost their economy and it was not created and designed to do this. In reality, after many years since 2009, even Bitcoin already is no longer a baby, matured enough, got better adoption, at the moment it does not have that power to fix national economical, financial problems. It will not have that power in future too, forget about it.

You have said what I feel is the reality that many Bitcoin lovers have not understood. Bitcoin might seem so nice for countries to adopt but in reality, it has its peculiarities and challenges especially when put to test  as payment solution to the ordinary citizens who may not have the knowledge to use Bitcoin and also protect themselves from theft. Think about the aged, the children and the disabled, fiat will be far easier for them than Bitcoin. This is why I think adopting Bitcoin by countries will be feasible if it work side by side with fiat payment systems. This way, it will become a thing of preference for the citizen and also make it more democratic.

I agree, it doesn't mean that if a country fully adopts the technology of crypto currency, or bitcoin to be specific, the country or its people will prosper in life or the country will become more powerful in terms of economy. The thing is, if a country fully adopts and implements crypto currency into their system without proper preparation and discussion about crypto currency, they might experience problems, especially since not all people could be expected to understand a complex thing as crypto currency. Do you think all people will have the patience and will to learn bitcoin despite their capabilities? What I can say is that yes, bitcoin or crypto could help a country if adopted, but it will take a long time before it does because, for sure, there will be a lot of trials and errors in implementing that technology. Maybe for now, bitcoin or crypto currency could boost those individuals who are involved in crypto currency.

[stompix]

It could be beneficial in several ways because.
1. It is the fastest way to combat inflation, due to it's limited supply, making it more scarce and costlier, which could help strengthen a countries economy.

Nope! No! Not! Niet!

The moment a country  that suffers from high inflation will try to buy Bitcoins with it's worthless inflated fiat for which there will be no demand it will just trigger higher inflation, then higher inflation, till their banknotes will be so useless they won't be able to pay with 100 trucks of it for the fee of a tx!
Read into this first:
https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic

From August 1921, the president of the Reichsbank, Rudolf Havenstein began a strategy of buying foreign currency with marks at any price, without any regard for inflation, and it only increased the speed of the collapse in value of the mark

This is exactly what will happen to the country that will try this, for every Bitcoin they will acquire they will get another x% in inflation till the point they will rather sell directly the leaves from the trees that should have been turned into paper and notes for Bitcoin as even those would be more valuable!

2. Bitcoin has a transaction cost making it easier for financial industries and traders to carry out transactions without worrying about high cost of transaction fees.

Nope! Not! Niet!
You haven't made a transaction lately, haven't you  ?

Stop treating Bitcoin as a solution for a global or even national economy, Bitcoin works great for individual purposes, at macro levels it loses a shit ton of its advantages as those are simply not applicable anymore!

[Promocodeudo]

OP, how many countries has even adopted Bitcoin as a legal tender talk more of using it as inflation hedge, does bitcoin act as hedge of inflation on a large scale, this digital asset is very much volatile in nature making it almost impossible to combat inflation on high side, another fact you need to put into consideration is that most of this inflated country government are not ready to even think of allowing bitcoin to be adopted fully by institution on a large scale because of their selfish interest, they can only allow this presumptions to take place if they have control over this currency which we know that it is not possible for now, bitcoin despite being an inflation hedge has a limited preference to which it act, in an economical settings inflation is being tackle by more local productions and effective fiscal planning.

[Hispo]

While I understand why we should root for Bitcoin being accepted and even embraced for the population of countries which experiment high inflation, in reality things are not as ideal as we could assume. I have lived in a highly inflated economy for a long time, actually this country went through hyperinflation for some years, starting in the 2015 and while it is true many adopted Bitcoin to protect their money, most of people here adopted to save their money in stablecoins, soon as they got popularized in exchanges like Binance and Coinbase.
In the time being, it is possible here in this country to walk into a store and pay ones purchases using stablecoins, through centralized wallets like the one implemented on Binance (Binance Pay) or even though on-chain transactions. On the other hand, Bitcoin is not used as often as a way to transmit value, but rather as a way to invest and especulate in the long term.
Maybe, if in the future people get more educated about the benefits of Bitcoin second layer solutions like the lightning network, it will be possible for us as a commercial country/society to start replacing Fiat backed tokens with micro-transactions using satoshis, until now that is how things are and we must face it.

At least, it is a better alternative than seeing one's savings going down the drain because the reckless decisions of the central bank and the dumb but powerful demagogs in the presidency.

[Plaguedeath]

Inflation is really normal because it's what been expected by the government, inflation means there are many people spend their money and this make the economy circulation works. But high inflation rate is a problem, deflation i.e. the declines in goods and services prices, is actually bad for the government because many people tend to hold their money instead of spend it.

Accepting Bitcoin as legal tender isn't a solution since vast majority are prefer to use fiat (take a look to El Salvador).

[MusaMohamed]

Inflation is really normal because it's what been expected by the government, inflation means there are many people spend their money and this make the economy circulation works. But high inflation rate is a problem, deflation i.e. the declines in goods and services prices, is actually bad for the government because many people tend to hold their money instead of spend it.

Inflation happens in all nations, just better or worse, but it is everywhere.

Governments and central banks are not able to solve inflation of their fiat currencies. They print money, tighten interest rate later but after all they can not control inflation, just sometimes speed it up, sometimes reduce the inflation rate but generally the trend of inflation is up.

It causes terrible decreases of their fiat currencies' purchasing powers.

Purchasing Power of the U.S. Dollar Over Time.

Accepting Bitcoin as legal tender isn't a solution since vast majority are prefer to use fiat (take a look to El Salvador).

Only Bitcoin investors will be happy to receive Bitcoin as their payments for salary, customer purchase. If they are not investors, they surely feel inconvenient with Bitcoin payment, transaction fee, price volatility.

[icalical]

Bitcoin have a lot of benefits and could affect a countries economy positively due to it's transparency and inflation hedge, however my major point of focus is on inflation.
1. It is the fastest way to combat inflation, due to it's limited supply, making it more scarce and costlier, which could help strengthen a countries economy.
2. Bitcoin has a transaction cost making it easier for financial industries and traders to carry out transactions without worrying about high cost of transaction fees.
3. It's transaction rate is quicker and can help, business men, traders and individuals transact very quickly.
4. If a government accepts Bitcoin as a alternative to fiat
it could make currency exchange effortlessly and it cannot be influenced by corrupt governments officials.
5. I've seen no reason why some countries would be fighting against Bitcoin instead of adopting it into their system, I think any country doing that is fighting a lost fight and would be forced to accept it on the long run.

You got all those points right, Bitcoin could really be the solution for countries that are still currently fighting inflation. But I think there is another issue, first is the infrastructure, Bitcoin needs internet connection and at the very least a phone, and as far as I know many of the countries who are currently undergoing inflation is poor/3rd world countries and they might not have the required infrastructures to encourage their people to use Bitcoin. And the second issue is the people themselves, I know that most of the people who live in those country and especially the consumer is young people, but I think there are many business owners are seniors, for those seniors who never heard of Bitcoin or Crypto it would be difficult for them to move on, even if the want to, and before that they also need to be convinced that Bitcoin is safe to use.

[m2017]

If you interview a lot of people about Bitcoin, some would tell you it's a crypto currency used for digital transactions, some could also say it's a digital currency that operates independent of the central bank. You could also here others say it's a digital currency that could serve as an alternative to fiat currency, well they're all right in their different perspective of description.

But I will say that bitcoin is a speculative financial instrument used to make a profit on the difference between buying and selling. This is what primarily attracts all respondents (and non-respondents).

Well it might take a while before everyone accepts it as a legal tender, but it has the potential of replacing fiat money in the future.

Will everyone accept bitcoin as legal tender? That is the question. Most countries will probably allow it to be used as an investment instrument, but as a means of payment, many are preparing CBDC. I expect to see few countries with legalized bitcoin as a means of payment (countries with weak economies).

In the future there will be no paper money. From the word. At all. Only digital surrogates, like CBDC, will be used.

Bitcoin have a lot of benefits and could affect a countries economy positively due to it's transparency and inflation hedge, however my major point of focus is on inflation.

The economy of any country can be positively influenced only by production (of something in demand) or raw materials. If the country has a weak economy, then bitcoin will not save from inflation.

But Bitcoin is known for it's volatility and can serve as an inflation hedge to their  economy if only they could adopt it's use for transactions or as an Alternative to fiat.

But bitcoin's volatility within countries will have an even worse impact on the economy than inflation.

[yazher]

They should at least try to use every opportunity to save their country's economy since bitcoins offer another chance to make their country prosper and attract some investors to operate in their country like huge numbers of miners and local crypto exchanges. This will only be possible if they promise them security and low taxes when it comes to building and operating in their countries. Other countries are also offering this but if they have innovative strategies to attract these businessmen because they implemented bitcoins, then they will gonna surely have some chance to slightly increase their economy first and when others see the good result from it, they will also become their business partner as well.

[LDL]

My country is full of inflation but my country's inflation cannot be eliminated by Bitcoin adaptation. Inflation in our country is politically created, so if it is to be eliminated, a major change in politics should be made. Moreover, there is no acceptance of Bitcoin in my country, so no matter how much we talk positively about the adoption of Bitcoin, it will never be possible to accept Bitcoin in the context of my country. But if the politics change in our country like other countries and the government and central bank of the country attach importance to the acceptance of Bitcoin then only the inflation in our country can be reduced to a great extent. Other countries of the world have been successful in solving various social and economic problems of that country by approving the acceptance of Bitcoin, but our country still does not think positively about the acceptance of Bitcoin.

[vennali]

Please see this thread for a discussion about whether Bitcoin enthusiasts should be asking for the central government's help in forcing people to adopt Bitcoin.

Legal tender doesn't mean that you are forced to use that said currency. It just means that it isn't illegal to use the same and said currency will be accepted and taxed, which goes to the government for the betterment of the public(if used correctly). Lets say for my country India. Bitcoin isn't legal tender but it isn't illegal either. If government legalises and accepts taxes in Bitcoin, more people will be open to the idea of using Bitcoin as a mode of transaction, while also letting India acquire Bitcoins through public, which could be kept as reserves. We can track where the funds are allocated, when used and it would lead to overall transparency of the government.

Regarding the OP's topic. Inflation isn't bad for the economy up to a point, stagnation or deflation could honestly be much worse.  Just that more governments should be held accountable for the endless money printing they are doing without any instant consequence. US as an example, if the currency stronghold falters(which seems more and more possible as countries are becoming less reliant on USD for trade, as years go by. However, US is keeping up with improved trade relations to Europe as most of the energy and military trade EU was doing with Russia has been diverted to US and Arab world. If there wasn't an energy and military reliance for Europe on USA, there was a high probability that US might have gone into inflation leading to recession sooner than later.

[legiteum]

Legal tender doesn't mean that you are forced to use that said currency. It just means that it isn't illegal to use the same and said currency will be accepted and taxed, which goes to the government for the betterment of the public(if used correctly).  

As that thread repeated, over and over, "legal tender" is not the same as "legal".

The word, "legal tender" has a very specific meaning derived from the US Constitution, and it absolutely means forcing people to accept Bitcoin as a form of payment even if they don't want to accept Bitcoin.

Bitcoin is unsuitable as a mainstream means of payment because transactions can take 30 minutes and cost 30 dollars. This is not a conspiracy by "the government", it's a simple technical limitation of the blockchain architecture and it's not going to be solved. Bitcoin works just fine for what people actually use it for, which is a speculation instrument.

Using the government to force Bitcoin down people's throats won't accomplish anything except making people hate Bitcoin. (And why especially should Bitcoin have this special status? Why not Ethereum? Why not Dogecoin? Why not Haypenny currencies?).

Regarding the OP's topic. Inflation isn't bad for the economy up to a point, stagnation or deflation could honestly be much worse. [...]

I made the same point above as well: deflation is far, far more dangerous than inflation. No country in the world has based their economy on a static commodity in the last 100 years for good reason. If your primary currency appreciates in value, then you are incentivized to not spend it, which contracts the economy, which deflates it even further, and so on into a depression.

[Negotiation]

Inflation is very difficult to prevent most of the countries in the world are full of inflation today changes interest rates to control inflation. Although governments can help fight inflation through fiscal policy it is possible if the government can cut spending and raise taxes as a way to help reduce inflation. Also in the budget the government takes in more money than it puts into the economy as a result, the overall demand and price level in the economy declines and helps to combat the inflationary situation. It will depend on the government policy to adopt bitcoin. In the country where I live bitcoin is not legal yet. It is not possible to boost the economy by adopting bitcoin.

[Briggsmarineconsult]

I think African countries should adopt the use of crypto currencies to help boost their economy more. Rather than fighting against the use of bitcoin.

 It is a great privilege to experience the explicit and dynamics of the currency innovation in our local and global markets, transaction platforms and businesses in the day to day life. In one word bitcoin is "REVOLUTIONAL".

[9TONNN]

Accepting bitcoin as a legal tender wouldn't change the economy state of a country. Moreover, bitcoin must not be a legal tender before citizens will benefit from it, as long as bitcoin is not banned in a country, and it is legal to use it, then it will still serve its purpose. You should also note that it will be impossible for bitcoin to replace fiat in future, because it is limited in supply and cannot be used daily by everyone with the large number of population in the world.

Bitcoin was created to be an alternative payment method to fiat, which is that purpose that it will serve. El Salvador adopted bitcoin as a legal tender, it has not change their economy, but it will do that in the long run, since the have the country's fiat reserve in bitcoin. Bitcoin is a hedge to inflation, but you should also think about the high volatile nature of bitcoin. Bitcoin is still facing a challenge of high transaction fee that do happens from those garbage that uses bitcoin blockchain, that will be the worst for bitcoin users when those token pop up again.

I agree. Bitcoin does not have to a legal tender in any jurisdiction. It does not matter whether a nation/country bans BTC. Bitcoin is censorship-resistant to all such old school tactics.

[HelliumZ]

Inflation is one of the most serious problems of a country especially inflation is more or less in all countries but in my Bangladesh inflation is so intense that the purchasing power of common people in our country is out of control due to inflation. Inflation in Bangladesh is not easy to control because the inflation in this country did not happen suddenly but inflation has become so intense due to various incidental reasons that it is not possible to control inflation in this country even by adopting Bitcoin. If there is no change or control in the political environment of Bangladesh and if the foreign remittances are not increased and the foreign debt is not paid then our Bangladesh inflation will be more intense in the future. However, Bitcoin adoption in unique countries in the world is able to reduce Bitcoin inflation, but no matter how much Bitcoin adoption is done in my country, control will never be possible.

[Natsuu]

Yeah Bitcoin's like the superhero of money, especially when it comes to fighting inflation. With only 21 million coins ever, it's like a fortress against economic ups and downs plus it's quick and cheap for transactions, making it a dream for businesses and traders. Some countries might be skeptical but look at El Salvador took the plunge and it seems to be working out. Bitcoin might still have some wild swings but it's becoming the cool kid on the global economic block. Countries resisting might want to think twice before missing out on the crypto party that seems to be getting louder

[glendall]

because bitcoin does not have a fixed value, it always goes up and down, it will be difficult for bitcoin to become a valid payment, I think,
and also bitcoin cannot be used as a tool to improve the economy of one country because each country has different problems, and the exchange rate between bitcoin-usdt-local currency will be very influential,
However, for new people, it can provide long-term benefits by investing and making a profit if there is enough of the target

[Gormicsta]

I think African countries should adopt the use of crypto currencies to help boost their economy more. Rather than fighting against the use of bitcoin.

 It is a great privilege to experience the explicit and dynamics of the currency innovation in our local and global markets, transaction platforms and businesses in the day to day life. In one word bitcoin is "REVOLUTIONAL".

You're right, African countries have been rather slow when it comes to bitcoin adoption, Bitcoin adoption in Africa could turn the state of the continue around. Many African countries are dealing with hyperinflation and other economic issues and there's no doubt that Bitcoin adoption could provide a much better alternative to the failing traditional financial system in the country.