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

[shield132]

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

Yes, when it's on a country level, every country will be at the mercy of the other countries. On a country level, it's super risky when more than one country is involved in it. In overall, a country has to withdraw coins when others put too much USD into the Bitcoin market cap and when a country manages billions of dollars, it becomes very risky, there can be a fatal crisis if things don't go as expected and predicted.

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 completely agree with you, macroeconomics is very different from individual finances and it's impossible to compare them to each other but it's still funny to discuss. Btw I started talking about it because El Salvador is the only country that has been trying something like this.

[1714845568]

1714845568

[Rufsilf]

We all know that the price of bitcoin is quite volatile and that it could present serious difficulties for both consumers and businesses; therefore, I guess I disagree with you, OP. Relying on a currency that is prone to extreme price fluctuations, for instance, could increase economic instability and make long-term planning more difficult in nations that already struggle with inflation. Furthermore, because not everyone is aware of bitcoin and because some governments may forbid using that form of cryptocurrency, recognizing bitcoin as legal cash without sufficient regulation could expose the economy to risks including money laundering, fraud, and tax evasion. As these are merely subjective opinions, let's consider the potential outcomes of your thoughts, OP.

[Rabata]

In order for a country to develop, the leader of that country must plan for development. El Salvador is a relatively backward country, but since Nayeb Bukili took over the country's economy, the country's economy has started to grow. Bukili's move to make Bitcoin legal tender and hold Bitcoin has been opposed by many, but over time, his decision has been applauded. Today I believe that the country of El Salvador has been greatly improved by Bitcoin. The opportunity Bitcoin has created to bring money into the country by leveraging its remittance warriors will definitely see El Salvador make huge strides financially with in a few years, if properly harnessed.

[davis196]

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.
 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.

This is the 1000th forum post about this topic. Can't you come up with more original ideas.
I wish I could see 10 million or 100 million people transacting with BTC buying foods and groceries on a daily basis. Why would they spend their BTC if the Bitcoin price could hit 70K or 100K USD after a week or a month? How much would the transaction fees increase if 100 million people start making small transactions on the Bitcoin blockchain on a daily basis? Wouldn't this make the blockchain congested again?
The Bitcoin adoption in El Salvador kinda failed, I don't know why people keep pointing this country as an example for successful BTC adoption.

[EarnOnVictor]

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. Alot of countries are undergoing inflation currently especially in countries with bad governance, high crime rates and war. Sometimes it's takes a long while for some countries to get out of 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. 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.
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.

I believe you guys do not understand how the country's economics and government investments work, that's why you often preach about this the way it is common on the forum. Bitcoin is not the world's saviour when it comes to the economy and never will it be, just treat it as an asset, and that is all. It is true that Bitcoin can enrich some citizens and governments if they can take the high risk, but can't do more than that for the economy. What helps the economy is internal, and this is why the Policies, the GDP and the Trade balance must be ensured to be positive among others. Bitcoin is just an asset and governments often have enough assets all over the world, so it mustn't be Bitcoin, while many are also being bought in the form of Bonds.

Now, you can see that it depends on the government if they would be interested in the purchase of Bitcoin or not since it is not by force, and do not forget that no government in the world lacks asset purchases, they do it periodically. You are only suggesting but many of them have enough assets that are yielding and are hedging inflation both at home and abroad. Fine, Bitcoin would have been an added advantage, nevertheless, you can't blame any government for not buying it or trusting what they do not believe in. Governments often believe in what is centralised and that can add to the economy directly, and I respect that, but Bitcoin is not that thing. Illicit flows are also a concern.

You are only thinking about the money that can be gained, but when it comes to the economy, Bitcoin can't help since it is decentralised. This is unless the transaction is passed through a centralised system like ETF, exchanges and others for proper records and accountability. Some economies are even suffering because many citizens' FX inflow can't be traceable/accountable to their country of origin due to the decentralization of Bitcoin. Is this what you say would help the economy?

[btc78]

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

Now this is just wrong at least for now. Due to the blockchain being congested, we can expect that lesser and lesser transactions are being made and transaction fees are getting more expensive.

I disagree with this post. I don’t think inflation will be solved just mainly by bitcoin. Inflation is not caused by the people and bitcoin can only help the people themselves. It can improve the economic situation of a person but I don’t think it will exactly solve inflation of a fiat currency

[Dzwaafu11]

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.
 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.

As long as you cannot force someone to invest or trade bitcoin, you cannot force anybody to adopt bitcoin. So it's kind of funny that you said a whole country will be forced to adopt bitcoin in the future, which you know is impossible. Did you know how long it will take for a country to shut down their fiat that they have been using for a very long period of time to accept another currency? I think you are just saying these based on your own imagination, because I totally disagree with what you said. However, you cannot fight a government, and by adopting bitcoin as legal currency, I don’t see how it will make the country's economy stable.

However, as you stated, the bull run is just coming every 4 years, if I’m not mistaken, so how do you think these will have an impact on their economy? You can see that it will not be possible, although some governments may do it, but it won’t be an easy thing to do and won’t happen the way you think. 

[Woodie]

Bitcoin is indeed the future of money.

But when we talk of a country adopting Bitcoin and trashing its own currency, I feel such a country loses its identity! I know the catch here is to eliminate the negative effects of inflation, but Bitcoin has its cyclical movements which can affect many when price is dipping which could cause panick for those that don't understand it. Perhaps allowing it to run parallel to its local currency is the best option just to allow for preservation of identity, and allow others to learn about it while they see it being used.

Otherwise going full crypto as a country had its pros and cons especially that cryptos are not centralised. Imagine a country being hacked and it's holdings of millions worth of crypto being stolen because some human error was involved....we still have a long way to go.

[tbct_mt2]

Bitcoin is indeed the future of money.

It can be a money for you but not for others. It's freedom of human to use it or don't use it as money.

But when we talk of a country adopting Bitcoin and trashing its own currency, I feel such a country loses its identity! I know the catch here is to eliminate the negative effects of inflation, but Bitcoin has its cyclical movements which can affect many when price is dipping which could cause panick for those that don't understand it. Perhaps allowing it to run parallel to its local currency is the best option just to allow for preservation of identity, and allow others to learn about it while they see it being used.

Inflation is issue of a national economy and their governmental policy, Bitcoin can not help them to solve it. Bitcoin itself is a volatile currency so we can see stable coin loses its peg by backing with volatile assets. A national treasury if is backed by Bitcoin, will be volatile too and I don't deny that in long term, it will rise but in short term and mid term, it will be high volatile enough to cause very big issue for a country and its national treasury.

With this big risk, it's very impossible that central banks will add Bitcoin as their main asset in their national treasury. They can invest very small part of national treasury to Bitcoin as a risky investment.