Hyperinflation - Will it lead Countries to Adopt Bitcoin?

[Xampeuu]

I have hope that hyperinflation will get to a certain extent whereby many countries will have nothing left for them as an alternative to perfect their economy than in adopting for bitcoin use in the country, because over several years, the fiat system and government couldn't help in the situation of the economic challenge than to create a sustained inflation towards the economy and in which the people are the ones being affected the most.

I do not hope for that lol.

I am hoping that countries allow bitcoin adoption even without their country going into a whole crisis. I don’t want to have to suffer first before being helped. If they only decide last minute that bitcoin could help with hyperinflation, too much damage would have been made and they would have a much harder time to try and fix their economic problems.

The hope for bitcoiners is like that, but what about the government, of course it won't be that easy to legalize bitcoin, even though we have a good idea, but we don't have the power for the country to adjust to what we think. Bitcoin adoption can control the hyper inflation that is currently occurring, because currently the value of Bitcoin can be said to have increased more than inflation, even many times

[electronicash]

I have hope that hyperinflation will get to a certain extent whereby many countries will have nothing left for them as an alternative to perfect their economy than in adopting for bitcoin use in the country, because over several years, the fiat system and government couldn't help in the situation of the economic challenge than to create a sustained inflation towards the economy and in which the people are the ones being affected the most.

I do not hope for that lol.

I am hoping that countries allow bitcoin adoption even without their country going into a whole crisis. I don’t want to have to suffer first before being helped. If they only decide last minute that bitcoin could help with hyperinflation, too much damage would have been made and they would have a much harder time to try and fix their economic problems.

The hope for bitcoiners is like that, but what about the government, of course it won't be that easy to legalize bitcoin, even though we have a good idea, but we don't have the power for the country to adjust to what we think. Bitcoin adoption can control the hyper inflation that is currently occurring, because currently the value of Bitcoin can be said to have increased more than inflation, even many times

this will not be good actually. the idea is to just adopt BTC not crash the government and ruin its financial system. because not everyone in the country knows Bitcoin and has Bitcoin. the fiat currency has to still be working and will work side by side with BTC otherwise there will be no basis for BTC's price.

inflation may rise but people with BTC in their wallets will have the advantage and so gradually the adoption will take place as government also supports its existence.

[el kaka22]

I feel like El Salvador brought to peoples the idea of how governments look at crypto change a bit, because they are quite good at looking towards this situation and that did not end up well for any other nation. Sure they may have made it legal tender, and maybe a few more nations in the future may make it legal tender but these are smaller nations.

I mean we are talking about nations who can put all the money they afford and it is still less than some rich guy at wall street making an investment. We have seen ETF world put tens of times more than what that one nation could, so a small nation making it legal tender means nothing. People however will keep on investing because they think it will be good for them.

[Ultegra134]

The truth is that cryptocurrency are viewed as high volatile in some regions of the world and they hesitate to apply the necessary actions that'll interrelate with the severe instability of their country.Whereas,some citizens consider bitcoin as a safe haven for them and the right tool to secure a safe adventure.

Unstable hyperinflation disrupts the value of people's savings and undermine economic activities.One of the claims from Bitcoin maximalists is that Bitcoin will be a hedge against inflation.The key point here is that while some HYP may last many years,its potentially a good hedge against that but that doesn’t make it a good investment at the time of such emergence.
Emerging unfavorable markets are adopting are causing people to adopt cryptocurrencies at a rapid pace.

But that's the truth, though, isn't it? Don't you remember the backlash El Salvador received when Bitcoin crashed below $20,000? They had bought at a significantly higher price, and the whole nation was practically in debt due to its Bitcoin acquisition. It could have had detrimental effects on the government and in the country as well, as they could have gone bankrupt, and it would shut down any further discussions about Bitcoin becoming legal tender in any other country, as El Salvador would be a prime example of failure for cryptocurrencies. Fortunately, none of these happened, and I'm guessing their economy has seen a boost due to the current price increase, but its volatile nature can be both a blessing and a curse.

[pinggoki]

Probably that could be a part of the solution, I mean look at the core inflation rate of El Salvador, although they're experiencing an increase in the recent months, they were able to keep it low for 15 months so it's probably one of the many solution that could help but the other problem is that there's not a lot of people that are using bitcoin in El Salvador recently so there could be other factors involved in the prevention of hyperinflation, maybe even trying to limit the printing of money and at the same time make it a priority that the country is paying it's debts, that way you can be sure that you're slowly making it easier for the taxpayers as time goes by, maybe doing a little smart budgeting on the funds for the whole year would also work wonders.

[Wind_FURY]

Although true, it's merely a a matter efficiency and incentivization. Those young workers, if they decide not to be "exported" and earn Dollars, would continue to either be non-productive or under-paid. It would be better for them to migrate, be more productive, and remit U.S. Dollar back to their country. I believe that model is already in use by some financially-challenged nations. It helps with the supply of their country's foreign reserves.

That would not help the country and the people left in it though. After all you need a population, specially young generation, to handle different jobs in your own country. If the majority of them are migrating, a lot of things could halt domestically.

It could even lead to more inflation. It's a simple matter of supply and demand.
Take truck drivers for example. If majority of them migrate for a better pay, locally there will be a deficit and the supply chain will be disrupted. The remaining drivers would demand a much higher paycheck to deliver goods like groceries to the grocery stores. So the price of what the end user has to pay for skyrockets too.
We saw something similar to this (supply chain disruption due to lack of truck drivers) in UK after Brexit.

In such a scenario it won't matter how much foreign reserve the government owns...

But it still wouldn't help their country if they stay at home and be unproductive or under-productive. Plus if they don't get paid enough in form of salaries for the labor, then their country probably has too much supply of cheap labor, no? It's better to have those people go through a specialized training program, then be "exported" to a developed nation to become "earners" of U.S. Dollars or Euros that could sent back to their countries.

my country is one example of this. According to the data, our overseas workers contribute cash remittances of up to US$33.5 billion, which is 8.5 percent of the country's GDP.  we travel to every corner of the world, especially in the US. that's why even if USD crashes up, the remittances will still be one of the biggest economic contributors.

OK, that's actually quite impressive. I didn't know that skilled labor could be a massive "export" for a country. 👍

Melei may not look like a competent president but he is an economist afaik. if US is adopting BTC, why shouldn't he not do the same?

Although Bitcoin and crypto has become a political issue in the United States and that it could be making its defining moment under the spotlight, the U.S. is NOT adopting Bitcoin. Yet. But I believe when one entity adopts it to break down the political stronghold of another entity, the other entity will need to adopt it as well.

[pooya87]

But it still wouldn't help their country if they stay at home and be unproductive or under-productive. Plus if they don't get paid enough in form of salaries for the labor, then their country probably has too much supply of cheap labor, no? It's better to have those people go through a specialized training program, then be "exported" to a developed nation to become "earners" of U.S. Dollars or Euros that could sent back to their countries.

Yeah, well when the situation in a country gets worse (specially with an incompetent government) the society is left with only bad options that they have to choose from. Whatever they choose has different negative consequences. There is no good option here except if they get a better government (like what we saw in El Salvador) that tries hard to solve the domestic issues at the root and improve everything in the country so that people start having good options to choose from.

Remember that Bukele didn't improve his country by adopting bitcoin alone. He did a million different things.

[darewaller]

the idea is to just adopt BTC not crash the government and ruin its financial system. because not everyone in the country knows Bitcoin and has Bitcoin. the fiat currency has to still be working and will work side by side with BTC otherwise there will be no basis for BTC's price.

inflation may rise but people with BTC in their wallets will have the advantage and so gradually the adoption will take place as government also supports its existence.

I do agree that bitcoin will grow both in price and adoption as well, because the more people joins the higher the price will be and the more people will want to use it instead. I mean when Fiat currencies suck, people move to bitcoin and other crypto, even if it is just stablecoin. That means that we are going to see more people both buy it, but also they will want to spend/earn that as well which means adoption.

I personally hope that we can see a lot better results and greater returns with time, that has to be the most important part. I believe that we can get better with time. We just need to end up with a logical time shift, we can't have it from today until tomorrow, it will take longer than that and will slowly grow.

there is a working banking system in the country which means that Gold, Silver, and Bitcoin, will only work when there is already no financial system that is working. This sounds like chaos already. If you are to prepare for what is to come would you wait for the chaos to start?

Yeah, waiting until the collapse of the existing economic system to adapt bitcoin is not making any sense to me as well. If those people are aware of bitcoin and its core purposes then switching to bitcoin will benefit them for sure. At least holding 20- 40% assets in bitcoin will help them on the event of undesirable things to their own economy.

[Huppercase]

The hope for bitcoiners is like that, but what about the government, of course it won't be that easy to legalize bitcoin, even though we have a good idea, but we don't have the power for the country to adjust to what we think. Bitcoin adoption can control the hyper inflation that is currently occurring, because currently the value of Bitcoin can be said to have increased more than inflation, even many times

Do you know we are the government, everybody that is a citizen is a government and if indeed they practice democracy that says government of the people, by the people and for the people. So let's say the fact and the fact is that Bitcoin can't be adopted as a currency. The volatility kills the economics of fiat and for this reason, it wouldn't work. Fiat might be a garbage but the fact that it's what government want, Bitcoin is out of game for them, maybe individuality can adopt but not on the government level.

The government prefer gold and other financial instruments for it's people, you can see the battle Bitcoin has faced and the ones it's facing currently, there is developments with ETF but yiu can see it's written all over their face, they are not happy with but because individuals want it but fear the concept of not holding the main Bitcoin, they opted for that at discretion and risk but for government, forget it because it wouldn't happen.

[Volimack]

As far as I am concerned many countries economy is getting worse due to inflation they are looking for alternative ways to improve the economy of the country so maybe adoption can reduce the pressure on the economy of each country. But the government will not accept these currencies so easily because they are outside the government's control and fiat currency may become worthless. The government will usually solve the problem within its powers.

[Wind_FURY]

But it still wouldn't help their country if they stay at home and be unproductive or under-productive. Plus if they don't get paid enough in form of salaries for the labor, then their country probably has too much supply of cheap labor, no? It's better to have those people go through a specialized training program, then be "exported" to a developed nation to become "earners" of U.S. Dollars or Euros that could sent back to their countries.

Yeah, well when the situation in a country gets worse (specially with an incompetent government) the society is left with only bad options that they have to choose from. Whatever they choose has different negative consequences. There is no good option here except if they get a better government (like what we saw in El Salvador) that tries hard to solve the domestic issues at the root and improve everything in the country so that people start having good options to choose from.

Remember that Bukele didn't improve his country by adopting bitcoin alone. He did a million different things.

But is the option of migrating for work actually "bad" for everyone concerned though? For the individual's personal productivity and self-fulfillment, it's positive. For its impact on society from the country he/she is from, it's positive because of U.S. Dollar remittances. For the country where he/she is working in, it's also positive because he/she is providing a service/producing something.

[Marvell1]

The truth is that cryptocurrency are viewed as high volatile in some regions of the world and they hesitate to apply the necessary actions that'll interrelate with the severe instability of their country.Whereas,some citizens consider bitcoin as a safe haven for them and the right tool to secure a safe adventure.

Unstable hyperinflation disrupts the value of people's savings and undermine economic activities.One of the claims from Bitcoin maximalists is that Bitcoin will be a hedge against inflation.The key point here is that while some HYP may last many years,its potentially a good hedge against that but that doesn’t make it a good investment at the time of such emergence.
Emerging unfavorable markets are adopting are causing people to adopt cryptocurrencies at a rapid pace.

But that's the truth, though, isn't it? Don't you remember the backlash El Salvador received when Bitcoin crashed below $20,000? They had bought at a significantly higher price, and the whole nation was practically in debt due to its Bitcoin acquisition. It could have had detrimental effects on the government and in the country as well, as they could have gone bankrupt, and it would shut down any further discussions about Bitcoin becoming legal tender in any other country, as El Salvador would be a prime example of failure for cryptocurrencies. Fortunately, none of these happened, and I'm guessing their economy has seen a boost due to the current price increase, but its volatile nature can be both a blessing and a curse.

Their economy has improved significantly, but that is because Nayib Bukele has found a way to improve social security and boost the economy in many different ways, they do not rely entirely on bitcoin investment to improve the national economy. I remember Nayib Bukele once said they only used a small part of the national budget to invest in bitcoin and if it failed, it wouldn't have a big impact on them.

Bitcoin is just a volatile asset, a financial market, it's funny that some people think that if they accept bitcoin then inflation will go away. Or even if bitcoin becomes a currency, how will inflation disappear if people do not work and do not increase their income?

[bitLeap]

Argentina's government can mine Bitcoin if ever they want and it's not related to the hyperinflation that they're having because it is just another source or business that they're having.

And most of the countries that are into hyperinflation, they're using other currencies that they can accept. Like for Venezuela, they're accepting US dollars and people there are using bank transfers for every purchase they make.

So, going with Bitcoin as their alternative currency for payments, it's not impossible just as in other countries. They've got merchants that are accepting payments in Bitcoin.

Instead of fixing the country economic problems, he instead looks for reasons to avoid them by saying he wants to adopt Bitcoin. There is nothing wrong with that, but a country is risking the entire fate of its citizens. Not all citizens will be friendly in accepting Bitcoin as a second option, but it is necessary to reconsider whether the initial problem of inflation in the country was the result of the greed of the government which was unable to improve its financial system. If from the start this inflation leads to the financial sector, then the Argentine government must not abdicate its responsibility. Solve the economic problems first and the mounting debt, then after that start the infrastructure by updating the financial system.

[South Park]

Their economy has improved significantly, but that is because Nayib Bukele has found a way to improve social security and boost the economy in many different ways, they do not rely entirely on bitcoin investment to improve the national economy. I remember Nayib Bukele once said they only used a small part of the national budget to invest in bitcoin and if it failed, it wouldn't have a big impact on them.

Bitcoin is just a volatile asset, a financial market, it's funny that some people think that if they accept bitcoin then inflation will go away. Or even if bitcoin becomes a currency, how will inflation disappear if people do not work and do not increase their income?

People that say that probably do not have an idea about how the economy works or they are too optimistic about bitcoin and what it can do, adopting bitcoin could bring foreign investment to that country and as such improve its economic situation, but it is not going to be enough, even in a country that is relatively small like El Salvador, so a government looking to improve its economy cannot just focus on bitcoin, and instead it needs to try to focus on the entire economy and solve whatever issues it may be slowing it down.

[tabas]

As far as I am concerned many countries economy is getting worse due to inflation they are looking for alternative ways to improve the economy of the country so maybe adoption can reduce the pressure on the economy of each country.

And they don't see adopting Bitcoin as one of the big impact contributor to their economy and that's why, if it's about adoption. It's either they don't care and let their citizens adopt it without having legal implications. Many seem to be very welcoming to this kind of adoption and only few countries aren't willing to adopt and accept Bitcoin as a store of value and a new type of currency. Otherwise, the rest are just neutral.

But the government will not accept these currencies so easily because they are outside the government's control and fiat currency may become worthless. The government will usually solve the problem within its powers.

They have no control on it and that's why the battle against centralization and decentralization have begun when Bitcoin was made by Satoshi. But I don't think that even if they adopt BTC, there's no way that their fiat will become worthless.

[cabron]

As far as I am concerned many countries economy is getting worse due to inflation they are looking for alternative ways to improve the economy of the country so maybe adoption can reduce the pressure on the economy of each country.

And they don't see adopting Bitcoin as one of the big impact contributor to their economy and that's why, if it's about adoption. It's either they don't care and let their citizens adopt it without having legal implications. Many seem to be very welcoming to this kind of adoption and only few countries aren't willing to adopt and accept Bitcoin as a store of value and a new type of currency. Otherwise, the rest are just neutral.

But the government will not accept these currencies so easily because they are outside the government's control and fiat currency may become worthless. The government will usually solve the problem within its powers.

They have no control on it and that's why the battle against centralization and decentralization have begun when Bitcoin was made by Satoshi. But I don't think that even if they adopt BTC, there's no way that their fiat will become worthless.

When they already have a banknote that says 10 Trillion Pesos, that's the time they will realize their fiat is worthless. If it happened in Germany or Zimbabwe, it's not going to be surprising if it also happens to any country today that keeps printing because they have no Plan B.

There has to be a plan B, for the government's fallback. You know when they saw the US government collecting tax from crypto and seizing BTC, it should be understood by now that the government saw BTC to be valuable to which other country should also see it this way.

[tabas]

But the government will not accept these currencies so easily because they are outside the government's control and fiat currency may become worthless. The government will usually solve the problem within its powers.

They have no control on it and that's why the battle against centralization and decentralization have begun when Bitcoin was made by Satoshi. But I don't think that even if they adopt BTC, there's no way that their fiat will become worthless.

When they already have a banknote that says 10 Trillion Pesos, that's the time they will realize their fiat is worthless. If it happened in Germany or Zimbabwe, it's not going to be surprising if it also happens to any country today that keeps printing because they have no Plan B.

You're right and I stand to be corrected. But they're not going to rely on Bitcoin even that happens to their own fiat because they'll rely on another fiat just like other counties that have adopted USD as their currency aside from their hyperinflated local currency.

There has to be a plan B, for the government's fallback. You know when they saw the US government collecting tax from crypto and seizing BTC, it should be understood by now that the government saw BTC to be valuable to which other country should also see it this way.

I don't think that's how they see it. When the US government does all of those seizing of BTC, the context there was that they've been seized due to illegal activities and that's bad money in the impression of the government so they have to actually take it. And that's why I don't think those countries that are into hyperinflation will see it that there's something valuable with it. What they'll still do is to find an alternate currency where their economy could rely on. I'm a pro BTC but this is what happens in most countries that are experiencing hyperinflation but I'm hoping that someday that aside from El Salvador, there will be more countries to legalize Bitcoin as their legal tender.

[Marvell1]

Their economy has improved significantly, but that is because Nayib Bukele has found a way to improve social security and boost the economy in many different ways, they do not rely entirely on bitcoin investment to improve the national economy. I remember Nayib Bukele once said they only used a small part of the national budget to invest in bitcoin and if it failed, it wouldn't have a big impact on them.

Bitcoin is just a volatile asset, a financial market, it's funny that some people think that if they accept bitcoin then inflation will go away. Or even if bitcoin becomes a currency, how will inflation disappear if people do not work and do not increase their income?

People that say that probably do not have an idea about how the economy works or they are too optimistic about bitcoin and what it can do, adopting bitcoin could bring foreign investment to that country and as such improve its economic situation, but it is not going to be enough, even in a country that is relatively small like El Salvador, so a government looking to improve its economy cannot just focus on bitcoin, and instead it needs to try to focus on the entire economy and solve whatever issues it may be slowing it down.

A country with a developed economy needs to have good domestic and foreign policies, attract a lot of capital and create many jobs for people...Besides, national security also needs to be prioritized as in the case of El Salvador, the country with the highest crime rate in the world even though it is only a small country. Developing a country's economy has never been easy but people seem ignorant and naive to think that simply adopting bitcoin can improve a country's economy.

Let's also not forget that bitcoin is not the only anti-inflation asset in existence, gold is also a pretty good anti-inflation asset. If stopping inflation were just about using an asset with a limited supply, governments would have done it long ago without the help of bitcoin.

[target]

Their economy has improved significantly, but that is because Nayib Bukele has found a way to improve social security and boost the economy in many different ways, they do not rely entirely on bitcoin investment to improve the national economy. I remember Nayib Bukele once said they only used a small part of the national budget to invest in bitcoin and if it failed, it wouldn't have a big impact on them.

Bitcoin is just a volatile asset, a financial market, it's funny that some people think that if they accept bitcoin then inflation will go away. Or even if bitcoin becomes a currency, how will inflation disappear if people do not work and do not increase their income?

People that say that probably do not have an idea about how the economy works or they are too optimistic about bitcoin and what it can do, adopting bitcoin could bring foreign investment to that country and as such improve its economic situation, but it is not going to be enough, even in a country that is relatively small like El Salvador, so a government looking to improve its economy cannot just focus on bitcoin, and instead it needs to try to focus on the entire economy and solve whatever issues it may be slowing it down.

A country with a developed economy needs to have good domestic and foreign policies, attract a lot of capital and create many jobs for people...Besides, national security also needs to be prioritized as in the case of El Salvador, the country with the highest crime rate in the world even though it is only a small country. Developing a country's economy has never been easy but people seem ignorant and naive to think that simply adopting bitcoin can improve a country's economy.

Let's also not forget that bitcoin is not the only anti-inflation asset in existence, gold is also a pretty good anti-inflation asset. If stopping inflation were just about using an asset with a limited supply, governments would have done it long ago without the help of bitcoin.

Why is it that all of a sudden replies are anti-Bitcoin?  El Salvador already has paid its debts from IMF. Ony a few countries did that. I am not sure if it's because of BTC but Bukele definitely made the right choice after all, he lifted the country's economy by getting more investors in the country because of the Bitcoin bonds.

He made the country an easy place to go for Bitcoiners. Bitcoiners can even stay there and become a citizen with an easy to achieve conditions.

[Marvell1]

Their economy has improved significantly, but that is because Nayib Bukele has found a way to improve social security and boost the economy in many different ways, they do not rely entirely on bitcoin investment to improve the national economy. I remember Nayib Bukele once said they only used a small part of the national budget to invest in bitcoin and if it failed, it wouldn't have a big impact on them.

Bitcoin is just a volatile asset, a financial market, it's funny that some people think that if they accept bitcoin then inflation will go away. Or even if bitcoin becomes a currency, how will inflation disappear if people do not work and do not increase their income?

People that say that probably do not have an idea about how the economy works or they are too optimistic about bitcoin and what it can do, adopting bitcoin could bring foreign investment to that country and as such improve its economic situation, but it is not going to be enough, even in a country that is relatively small like El Salvador, so a government looking to improve its economy cannot just focus on bitcoin, and instead it needs to try to focus on the entire economy and solve whatever issues it may be slowing it down.

A country with a developed economy needs to have good domestic and foreign policies, attract a lot of capital and create many jobs for people...Besides, national security also needs to be prioritized as in the case of El Salvador, the country with the highest crime rate in the world even though it is only a small country. Developing a country's economy has never been easy but people seem ignorant and naive to think that simply adopting bitcoin can improve a country's economy.

Let's also not forget that bitcoin is not the only anti-inflation asset in existence, gold is also a pretty good anti-inflation asset. If stopping inflation were just about using an asset with a limited supply, governments would have done it long ago without the help of bitcoin.

Why is it that all of a sudden replies are anti-Bitcoin?  El Salvador already has paid its debts from IMF. Ony a few countries did that. I am not sure if it's because of BTC but Bukele definitely made the right choice after all, he lifted the country's economy by getting more investors in the country because of the Bitcoin bonds.

He made the country an easy place to go for Bitcoiners. Bitcoiners can even stay there and become a citizen with an easy to achieve conditions.

I'm not against El Salvador using bitcoin as legal tender, what I want is more evidence that bitcoin is a key factor in improving their economy. Because to my knowledge, I don't see bitcoin being created with a mission or being useful in helping a country's economy avoid hyperinflation whether it serves as a currency or an investment. 
If you also don't have evidence that bitcoin has helped their country pay off its debt, or that it's because Bukele's policies have helped their economy revive, you can't say I'm against bitcoin. As I said, it is not simple for a country to have a developed economy, and I also do not believe that their national economy has improved solely because of the adoption of bitcoin. What I want to say is that we don't need to exaggerate about bitcoin, I don't see any benefit in us exaggerating about it.