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

[stompix]

It does not matter whether a nation/country bans BTC. Bitcoin is censorship-resistant to all such old school tactics.

You think? How many bitcoin users do you know from North Korea?
Bitcoin has never seen a truly heavily enforced ban yet, and hopeful we won't, but to think that all would be ok with one it's just really day dreaming.
How many times would you piss yourself if bitcoin ownership would come with a life sentence in your country and you would hear  knock at the door at 2 am?

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.

How many Africans would afford to pay a tx, right now 63 sat/vB $5.57 for daily purchases?
How many Africans would be able to use Bitcoin since we're talking about a max of 400-500k transactions a day?
Oh, let's make it simpler, how many times have you used bitcoin yourself lately in RL?  

Again people, there some serious differences between personal finances and a nation's economy!

[kelechi]

Less Control: Cryptos work without a central authority, so they can be more reliable in unstable economies.

For Everyone: Cryptos can provide financial services to people who don't have access to regular banks.

Save Money: Some cryptocurrencies, like Bitcoin, are seen as a way to protect savings when the local currency loses value quickly.

Global Transactions: Cryptos make it easy to do business with other countries, helping trade and money transfers.

Less Corruption: The technology behind cryptos can make financial systems more transparent and reduce corruption.

New Funding: Cryptos can be used for innovative ways to get money, like Initial Coin Offerings (ICOs).

Move Money Easily: Cryptos let people move money across borders without restrictions, important during economic troubles.

Protection from Inflation: Cryptos, especially those with a fixed supply, can be a way for people to protect their money from losing value in times of inflation.

[Negotiation]

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.

It is true that african countries are very underdeveloped and if they adopt bitcoin their economy can improve as well as their economy, but it will depend on the government. Africa has many economic problems but it is difficult for governments to deal with them. Government adoption of bitcoin is good for the economy if people learn about the use of bitcoin and become proficient.

[Gormicsta]

How many Africans would afford to pay a tx, right now 63 sat/vB $5.57 for daily purchases?
How many Africans would be able to use Bitcoin since we're talking about a max of 400-500k transactions a day?
Oh, let's make it simpler, how many times have you used bitcoin yourself lately in RL?  

Again people, there some serious differences between personal finances and a nation's economy!

I believe it is fair to conclude that only a small minority of Africans can afford to pay the existing transaction fees for daily purchases. Bitcoin is still in its early stages, and there are numerous hurdles that must be overcome before it can become a viable option for daily transactions in Africa. It's worth noting that, even if the average transaction fee falls in the future, other barriers to adoption remain, such as a lack of internet connection and the exorbitant cost of smartphones in many parts of Africa.
Regarding your question about my personal use of Bitcoin, I use Bitcoin as often as I can for payment,

[Ayers]

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.

It is true that african countries are very underdeveloped and if they adopt bitcoin their economy can improve as well as their economy, but it will depend on the government. Africa has many economic problems but it is difficult for governments to deal with them. Government adoption of bitcoin is good for the economy if people learn about the use of bitcoin and become proficient.

Let me ask, how will bitcoin improve the economies of African countries? Because according to my understanding, if a country wants to develop its economy, it needs good foreign policy...creating abundant jobs for people and thereby helping people have a stable income. Meanwhile, bitcoin is a highly volatile investment and investing in it does not guarantee 100% returns. Bitcoin is a financial market and there will be winners and losers, there is no win-win financial market. So how will bitcoin help the national economy?

[Z390]

Bitcoin is a highly volatile digital asset, it's not even safe for beginners as they will need to do some strong research first before they invest or try to buy Bitcoin, now if a country is going to use Bitcoin as a means of escaping poverty and also boost their economy, they must consist of smart leaders, who knows and understand technology.

The problem here with my own country for example is that all our leaders have no clue what bitcoin is, they don't know what its capable of, they don't understand how they can use it to the benefit of the country, instead they prefer to go against it.

Most countries in Africa has greedy leaderships, I doubt they will even use Bitcoin for the sake of the country, I believe they will be able to do as they like with Bitcoin and still continue their embezzlement acts like they used to do.

[shield132]

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!

We calculate Bitcoin's value in USD, so when a country buys a Bitcoin with its worthless fiat and stores it, waits for the price to rise and then sells it, isn't it going to help them economically? If they buy it at 20K USD and sell at 40K USD, they are doing 2x profit. The profit in USD matters the most for countries with high inflation because they depend on USD for import and export and their national currency is tied to USD because people value real estate, cars and other things in USD when they buy and sell it.

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!

That's true, daily Bitcoin transactions on Bitcoin Blockchain are impossible at a country level where millions of people have to use it daily, Bitcoin wasn't meant for that pressure and can't deal with it right now. The more people use it for transactions, the more expensive it becomes and completely destroys the idea of improving economy when people have to pay huge price for transactions.

[bluebit25]

Yep, I agree that Bitcoin is a unique cryptocurrency with many characteristics that can benefit a country's economy, especially amid inflation. We all understand Bitcoin has enormous potential to change the global financial system and become the future of money. But to achieve this, there needs to be cooperation from countries and organizations in regulating and managing Bitcoin effectively.

I always share with people that bitcoin is still very new, because my journey in the space realized that only a small number of people had any real attachment to it and most just came for a drive and left when they get good/bad results. So it is advisable to research Bitcoin and take advantage of the many opportunities, as well as minimize the risks that they coexist with.

[bitLeap]

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.
 Other countries should use see El Salvador that invested in it and adopted it for transactions as an example of how Bitcoin could affect an economy positively. It's helped  them to improve their enocomy by reducing the rate on inflation in their country, though it didn't occur as fastly as speculated, but in the bull season when the halfing fully comes as speculated their economy could become very robust, since it's adopted over there.

I ask you again, is your country friendly to Bitcoin so far and accepts it as legal payment? Because to pursue your statement, of course it has to be realised, or is it just being open and not taking the hard line to fully adopt it, then the country is considered to have lost? as you mentioned. The fact is that it is not like that and countries that do not adopt Bitcoin do not mean they do not want to provide freedom and progress from an economic perspective. Because even without adopting Bitcoin, they can still manage their resources and play on the world market by collaborating with other countries. Adopting Bitcoin is just a matter of choice, not the only option as an economic solution. There are so many ways depending on which benefit aspect is used as a reference.

El Salvador is a country with a relatively small territory, so managing it is not as complicated as countries with large territories, various beaches, islands, etc. This also needs to be considered because to withdraw the total fiat currency and implement new payment options there needs to be a big meeting, a joint agreement, have a target far in advance and I think the process is not an easy one.

[Mpamaegbu]

Accepting bitcoin as a legal tender wouldn't change the economy state of a country.

I strongly believe that too. We've a few countries that have tried such as examples and we know how badly they've faired in that regard. I think it's better not to make Bitcoin a national currency but allow citizens to indulge in its trade without restrictions. That way, even those who aren't employed by the government or private sector will be independent on their own. They won't be dependent on anyone but can trade and earn income for themselves. This is what Bitcoin has been able to do for many of us. To make a volatile asset like Bitcoin a national currency won't be a right move.

[Iranus]

The problem here with my own country for example is that all our leaders have no clue what bitcoin is, they don't know what its capable of, they don't understand how they can use it to the benefit of the country, instead they prefer to go against it.

How do you know your country's leaders know nothing about bitcoin? If they are truly stupider than the average person, how can they become leaders of a country? They do not accept bitcoin for their own reasons, they understand it too well and they feel it is not beneficial to their power so they do not want to accept it. Like China, the country with the world's second largest economy also banned bitcoin many years ago. How can a country become a great power without wise leaders?

I understand how we feel living in a country with leaders who only know corruption and disregard for people's lives, but that doesn't mean they are idiots who don't know anything about bitcoin.

[thecodebear]

The problem here with my own country for example is that all our leaders have no clue what bitcoin is, they don't know what its capable of, they don't understand how they can use it to the benefit of the country, instead they prefer to go against it.

How do you know your country's leaders know nothing about bitcoin? If they are truly stupider than the average person, how can they become leaders of a country? They do not accept bitcoin for their own reasons, they understand it too well and they feel it is not beneficial to their power so they do not want to accept it. Like China, the country with the world's second largest economy also banned bitcoin many years ago. How can a country become a great power without wise leaders?

I understand how we feel living in a country with leaders who only know corruption and disregard for people's lives, but that doesn't mean they are idiots who don't know anything about bitcoin.

bolded part....is that a serious question?? lol. I mean in America we just had Trump as president a few years ago (and he's actually running again! which is insane), and he is far more stupid, and far more corrupt, than the average american. Being stupid is not a barrier to leading a country.


But to answer the question that you asked the other person, most politicians indeed don't know much about Bitcoin. I'm sure they have heard of it, but that doesn't mean they are well informed about it. Most politicians probably know nothing more about Bitcoin than what they read in the headlines, which are usually negative, like Bitcoin "wastes" tons of electricity, is used by hackers, is stolen from exchanges, etc. I very much doubt there are many politicians that understand all the hugely beneficial things Bitcoin provides, and how it helps power grids by using cheap unused electricity and can solve some power imbalance issues in various places in the world. The average politician is old, and is not a bitcoiner, and therefore does not know much about Bitcoin, just like the average member of the public doesn't know much about Bitcoin, regardless of their age.

[stompix]

We calculate Bitcoin's value in USD, so when a country buys a Bitcoin with its worthless fiat and stores it, waits for the price to rise and then sells it, isn't it going to help them economically? If they buy it at 20K USD and sell at 40K USD, they are doing 2x profit. The profit in USD matters the most for countries with high inflation because they depend on USD for import and export and their national currency is tied to USD because people value real estate, cars and other things in USD when they buy and sell it.

Theory, when it comes to practice not so much! Just as you have devalued your currency buy buying usd and bitcoin, the moment you sell your bitcoins for usd and using that to import stuff you're tilting the balance in the opposite way, increasing the parity of your coins against the dollar and against bitcoin and slowly removing all the effects. But the more important thing is that to do this on a scale that it would matter you would basically be at the mercy of the other countries, since for your investment to grow you need others to also buy, and when you sell you need others to buy your coins and obviously not dump a shitload exactly one day before you have your loan payments

But long story short, nobody managed that with gold, nobody will be able to do it with Bitcoin.
Again, if eveything at macro level would be as easy as individual finances!

~

I believe it is fair to conclude that only a small minority of Africans can afford to pay the existing transaction fees for daily purchases.

So, then why did you say that adoption will magically change eveything when adoption with a minuscule minority is not possible?

[southerngentuk]

Legal tender just means you can use it to pay off debts and taxes. Cool, but it doesn't guarantee a complete economic overhaul. Even if Bitcoin isn't legal tender in a country, people can still use it for stuff like online shopping or sending money overseas. It's like having an extra tool in your financial toolbox, even if it's not the only one.

Now, replacing regular money with Bitcoin completely? That's a bit of a stretch. Bitcoin's supply is limited, and with the world's population constantly growing, it wouldn't be enough for everyone to use it for everyday stuff, like buying groceries. Plus, its value can jump around more than a kangaroo on a trampoline, making it a bit risky for everyday transactions.

So, what's the real deal with Bitcoin then? Well, it's more about offering an alternative way to handle your money, outside the traditional bank system. It's like a peer-to-peer network, cutting out the middleman and giving you more control over your dough. Plus, everything is transparent, like an open book, so you can see where your money goes.

El Salvador, for example, decided to adopt Bitcoin as legal tender. Did their economy instantly boom? Not exactly. But it's still early days, and the long-term effects are yet to be seen.

[nelson4lov]

While I'm not an expert in economics, I don't think that Bitcoin will directly influence a country's economy. It's true that the economy will boom in the bull run since numbers go up but what happens in a prolonged bear market? Everything go kaboom? Bitcoin was built as a p2p solution and whether or not the government of any country adopts it for their economy is none of our business. As long as we have access to, and use bitcoin for what it was originally created for, we should be good. OP also mentioned transaction cost. Until we can scale and have cheap tx cost, we don't need that kind of adoption. It's not everywhere that can pay $20 for a $30 transaction.

[Iranus]

The problem here with my own country for example is that all our leaders have no clue what bitcoin is, they don't know what its capable of, they don't understand how they can use it to the benefit of the country, instead they prefer to go against it.

How do you know your country's leaders know nothing about bitcoin? If they are truly stupider than the average person, how can they become leaders of a country? They do not accept bitcoin for their own reasons, they understand it too well and they feel it is not beneficial to their power so they do not want to accept it. Like China, the country with the world's second largest economy also banned bitcoin many years ago. How can a country become a great power without wise leaders?

I understand how we feel living in a country with leaders who only know corruption and disregard for people's lives, but that doesn't mean they are idiots who don't know anything about bitcoin.

bolded part....is that a serious question?? lol. I mean in America we just had Trump as president a few years ago (and he's actually running again! which is insane), and he is far more stupid, and far more corrupt, than the average american. Being stupid is not a barrier to leading a country.

I don't live in America so I don't know how smart Americans are. But I know that to become president you need the support and votes of the people and if Trump is stupid and corrupt. Why did Americans support and nominate him as president? So who is the bigger fool in this case? Furthermore, stupid means not knowing anything, but why can one become a billionaire or president?

If being stupid could become a billionaire or lead the country, I think none of us would refuse. And why are we smarter than them but we are nothing in this world? As far as I know, all leaders of companies, organizations, and countries are talented people, I've never heard a story about someone stupid enough to become a leader.

But to answer the question that you asked the other person, most politicians indeed don't know much about Bitcoin. I'm sure they have heard of it, but that doesn't mean they are well informed about it. Most politicians probably know nothing more about Bitcoin than what they read in the headlines, which are usually negative, like Bitcoin "wastes" tons of electricity, is used by hackers, is stolen from exchanges, etc. I very much doubt there are many politicians that understand all the hugely beneficial things Bitcoin provides, and how it helps power grids by using cheap unused electricity and can solve some power imbalance issues in various places in the world. The average politician is old, and is not a bitcoiner, and therefore does not know much about Bitcoin, just like the average member of the public doesn't know much about Bitcoin, regardless of their age.

I think on the contrary, I think negative articles and information about bitcoin are mostly spread by those politicians and no one else. They are the ones holding the media, if they don't spread the word then who can? As for why they spread negativity about bitcoin, I think you understand and I don't need to explain.

[Churchillvv]

Bitcoin honestly cannot handle a mainstream transaction volume. It will just jam the network and push the transaction fees to an an unacceptable level where the existing users will also suffer.

From my little knowledge I believe Bitcoin was never created to handle the mainstream transaction of a country, it was created as an alternative currency or payment method. it works Viz vice with the fiat of a nation.

there are little things that most be considered if it's going to be a country's standard payment method like goods that are worth less than a dollar etc. and it's transaction fee for such kind of goods. its probably not going to work in this current generation maybe another generation.

[pinggoki]

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.

I don't believe that the scarcity is going to be the only factor as to why bitcoin when used as a currency (optional or mandatory) will combat inflation, remember that what needs to happen is the value of the country's currency to go down not adopt a new form of currency, it's a headache for the people if they suddenly switch.

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.

Well, transaction fees are expensive too, and they don't vary on how much money is being moved, it's just the payment currently at the network to have your transaction prioritized.

3. It's transaction rate is quicker and can help, business men, traders and individuals transact very quickly.

That depends on how much you're paying for transaction because if you're at low priority, it might take a while before the other party might receive their payments and if you want it to be fast then you're going to be paying premium if not the current average.

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.

This I can agree but the problem with this one is that people are going to be paying taxes besides the transaction fees. It can be influenced by corrupt officials, they can just conspire to criminalize it's use or remove it's legality in the country and bitcoin would be gone from that country.

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.

The reason is that bitcoin is decentralized and the government is centralized as it can already be, that's the opposite of them so they're going to be resisting the potential to adopt because they aren't just compatible.

[Youngkhngdiddy]

Let me ask, how will bitcoin improve the economies of African countries? Because according to my understanding, if a country wants to develop its economy, it needs good foreign policy...creating abundant jobs for people and thereby helping people have a stable income. Meanwhile, bitcoin is a highly volatile investment and investing in it does not guarantee 100% returns. Bitcoin is a financial market and there will be winners and losers, there is no win-win financial market. So how will bitcoin help the national economy?

You're right to a point though, there's no win win in Bitcoin due to it's volatility, but with the current bull run and the upcoming halving, if inflated African countries could adopt it's use for transactions there's or investments, there's a probability that it could serve as an inflation hedge an help reduce the level of poverty as well as strengthen their economy to an extent.
 Well let's take for instance, El Salvador that invested in bitcoin during the bear market, I put it to you that the countries is now reaping a lot of profits currently, they owned about 2848 worth of BTC and with the current surge of the price of BTC above 60k, El Salvador's assets in Bitcoin has passed $60 Million USD, now if they could get that figure with BTC just a little above 60k  you could imagine how much they'll be worth if Bitcoin reaches ATH.

[legiteum]

Let me ask, how will bitcoin improve the economies of African countries? Because according to my understanding, if a country wants to develop its economy, it needs good foreign policy...creating abundant jobs for people and thereby helping people have a stable income. Meanwhile, bitcoin is a highly volatile investment and investing in it does not guarantee 100% returns. Bitcoin is a financial market and there will be winners and losers, there is no win-win financial market. So how will bitcoin help the national economy?

You're right to a point though, there's no win win in Bitcoin due to it's volatility, but with the current bull run and the upcoming halving, if inflated African countries could adopt it's use for transactions there's or investments, there's a probability that it could serve as an inflation hedge an help reduce the level of poverty as well as strengthen their economy to an extent.
 Well let's take for instance, El Salvador that invested in bitcoin during the bear market, I put it to you that the countries is now reaping a lot of profits currently, they owned about 2848 worth of BTC and with the current surge of the price of BTC above 60k, El Salvador's assets in Bitcoin has passed $60 Million USD, now if they could get that figure with BTC just a little above 60k  you could imagine how much they'll be worth if Bitcoin reaches ATH.

And could you also imagine what happens to that country if the price of Bitcoin retreats by 75%, like it did only 18 months ago?

You are talking about putting your country's assets on a roulette wheel here.