Bitcoin will shrink the economy

[As-Soon-As]

I don't think Bitcoin will cause monetary contraction, as geopolitical pressures can affect Bitcoin currency. You will notice that in the country I live in, the basic needs around us can be met with currency, but never with Bitcoin, even though we can use Bitcoin holdings.

We purchase bitcoins with money and hold them, holdings we may have for a few years but not forever. We will eventually sell this Bitcoin holding and transfer it to our local currency.
But since we've held bitcoin for a while it's usually what I've used to grow my money. So I think there will be no economic contraction due to Bitcoin, only the process of using it.

[icalical]

I got your point, if Bitcoin is widely adopted, it could change how we think about and approach economic growth. It might lead to more thoughtful growth focused on saving and investing rather than just spending on unnecessary things. This could result in better investments in new ideas and infrastructure, and avoid wasting resources on things driven by inflation.
However, Bitcoin could also encourage smarter financial decisions and create a more balanced and efficient economy, focusing on essentials and long-term stability. The idea that Bitcoin would hurt the economy doesn’t consider how new financial tools and changes in central bank policies could adapt. Overall, Bitcoin’s impact could be positive by shaping a healthier, more resilient economy aimed at sustainable growth and long-term success.

[Adbitco]

I don't think Bitcoin will cause monetary contraction, as geopolitical pressures can affect Bitcoin currency. You will notice that in the country I live in, the basic needs around us can be met with currency, but never with Bitcoin, even though we can use Bitcoin holdings.

We purchase bitcoins with money and hold them, holdings we may have for a few years but not forever. We will eventually sell this Bitcoin holding and transfer it to our local currency.
But since we've held bitcoin for a while it's usually what I've used to grow my money. So I think there will be no economic contraction due to Bitcoin, only the process of using it.

It may surprised you that people aren't willing to sell their bitcoin no matter how hard things seems to be for them, they would hodl as long as they are still breathing because selling is like wasting one investment and of course people had seen the future of bitcoin and for that they are holding for decades or even till their last breath and could passed to the next offspring.

Bitcoin doesn't have any economic side effects because bitcoin is not a competitor of fiat neither is it created to threaten fiat and besides both fiat and bitcoin works collectively since you can't use bitcoin without having to convert to fiat or you can't have bitcoin without having to convert your fiat to bitcoin so both are working together and there no day one would think of overtaking the other.

[UTON Blockchain]

I think it’s a bit of an overstatement to say “Bitcoin will shrink the economy.” In fact, the emergence of Bitcoin and other cryptocurrencies is not shrinking the size of the economy, but redefining the way wealth is stored and transferred.

[Smack That Ace]

I don't think Bitcoin will cause monetary contraction, as geopolitical pressures can affect Bitcoin currency. You will notice that in the country I live in, the basic needs around us can be met with currency, but never with Bitcoin, even though we can use Bitcoin holdings.

We purchase bitcoins with money and hold them, holdings we may have for a few years but not forever. We will eventually sell this Bitcoin holding and transfer it to our local currency.
But since we've held bitcoin for a while it's usually what I've used to grow my money. So I think there will be no economic contraction due to Bitcoin, only the process of using it.

It may surprised you that people aren't willing to sell their bitcoin no matter how hard things seems to be for them, they would hodl as long as they are still breathing because selling is like wasting one investment and of course people had seen the future of bitcoin and for that they are holding for decades or even till their last breath and could passed to the next offspring.

I don't know about others but honestly I haven't sold my bitcoins yet because I haven't reached my goal. If bitcoins can reach my target, I will sell them immediately and I know my friends will do the same. No one intends to hold bitcoin forever or pass it on to the next generation while our current life is full of difficulties and problems to solve.

Bitcoin is just money, and it will be useless if we fall into trouble and cannot use it or if it does not help us. Investing in bitcoin is to help us have a better life, it serves us, we do not worship or serve it, so holding it until the last breath is a bad idea.

[Onyeeze]

Bitcoin is a currency that is meant for investment and the if a country or any nation accepted to invest in Bitcoin that will help to increase their economy but some country does not understand such because then think about bitcoin is meant for scam people, so that is why some people in their country dislike to invest in Bitcoin not knowing that gold is a digital currency like a Bitcoin but then invest in gold and the gold have been helping them to increase their economy so you have to be the same part bitcoin will play when you invest in Bitcoin especially a country that have money to invest in Bitcoin for long time

[Smartvirus]

If Bitcoin becomes widespread enough that most people hold their savings in it, then it will greatly and permanently reduce liquidity in the financial system, lead to a decrease in consumer spending and cause major ructions in the global economy.

Bitcoin going mainstream doesn’t mean fiat currencies would be going out of existence. That assumption most individuals seem to have is actually out of place. You wouldn’t imagine any nation loosing that part to its authority and identity to Bitcoin ever.

Again, people do invest in real estates, have it seat there in years for it to appreciate in value and the economy still runs fine. Why should Bitcoin be any different?
Is it because @OP tends to view it for just a currency? What happens to Bitcoin serving as an asset…?

Bitcoin isn’t going to shrink the economy and people will always find means to use Bitcoin in the most beneficial at way.

[justdimin]

I don't know about others but honestly I haven't sold my bitcoins yet because I haven't reached my goal. If bitcoins can reach my target, I will sell them immediately and I know my friends will do the same. No one intends to hold bitcoin forever or pass it on to the next generation while our current life is full of difficulties and problems to solve.

Bitcoin is just money, and it will be useless if we fall into trouble and cannot use it or if it does not help us. Investing in bitcoin is to help us have a better life, it serves us, we do not worship or serve it, so holding it until the last breath is a bad idea.

I might end up passing it to the other generation if I have enough. I am not saying I am nowhere near that of course, I would require like at least 200k in cash (fiat) so that I could live with that forever, and whatever is left could go towards my kids.

But I agree, problems are everywhere in our life and because of that I do not think that we are going to do just fine, and that will result with us selling, I have sold my coins many times over the years just to pay for stuff, not only that but I ended up taking many loans as well so it is not really something that I care at all. I believe that the most important thing in my life right now is to manage how to survive, and if it means not holding bitcoin then I won't hold it at all, but if I can, then I am not against it.

[Gladitorcomeback]

Bitcoin is a currency that is meant for investment and the if a country or any nation accepted to invest in Bitcoin that will help to increase their economy but some country does not understand such because then think about bitcoin is meant for scam people, so that is why some people in their country dislike to invest in Bitcoin not knowing that gold is a digital currency like a Bitcoin but then invest in gold and the gold have been helping them to increase their economy so you have to be the same part bitcoin will play when you invest in Bitcoin especially a country that have money to invest in Bitcoin for long time

Wait, what? Since when did gold become a digital coin like Bitcoin? There might be digital currencies created that are backed by gold, but gold is a physical substance and the physical existence of gold makes it a more secure and trusted investment asset for most people in the world, especially those who are not too much into technology and stuff.

If you ask a person with traditional values about what they would choose for an investment between Bitcoin and gold, they would probably go with gold by telling you that it's more secure since it has physical existence and it cannot just vanish without anyone knowing where it went.

So, even though there is no doubt that Bitcoin is one of the most profitable investment assets of this era, gold has been around for centuries and it is still one of the most trusted forms out there.

[iBaba]

Bitcoin going mainstream doesn’t mean fiat currencies would be going out of existence. That assumption most individuals seem to have is actually out of place. You wouldn’t imagine any nation loosing that part to its authority and identity to Bitcoin ever.

Again, people do invest in real estates, have it seat there in years for it to appreciate in value and the economy still runs fine. Why should Bitcoin be any different?
Is it because @OP tends to view it for just a currency? What happens to Bitcoin serving as an asset…?

Bitcoin isn’t going to shrink the economy and people will always find means to use Bitcoin in the most beneficial at way.

In my humble opinion, saying that bitcoin will shrink the economy is like looking at the economy from a unidirectional point of view and delimiting the potentials or the scope of the economic sector of the world. What I mean is that the economy is wide and big enough to accept emerging technological innovations and solutions and still maintaining the old models and systems.

I don't see the fiat currency facing out at least not now and not in the near future. The massive adoption of the bitcoin and crypto technology won't stop people from using the fiat because they both have their own benefits and limitations.

[serjent05]

I don't think Bitcoin will cause monetary contraction, as geopolitical pressures can affect Bitcoin currency. You will notice that in the country I live in, the basic needs around us can be met with currency, but never with Bitcoin, even though we can use Bitcoin holdings.

Bitcoin can have positive and negative effects on the economy. The economy of a country will shrink if people evade taxes through buying and keeping Bitcoin hiding there yerly gaine to avoid taxes.  Another thing is Bitcoin can also affect the economy negatively if all the resources like investment is pointed to Bitcoin and the rest is neglected.

There might also be the time when Bitcoin is globally accepted and dominates the financial system, government and bank may loss control over the financial system and may lead to financial instability.

We purchase bitcoins with money and hold them, holdings we may have for a few years but not forever. We will eventually sell this Bitcoin holding and transfer it to our local currency.
But since we've held bitcoin for a while it's usually what I've used to grow my money. So I think there will be no economic contraction due to Bitcoin, only the process of using it.

True, like supply and demand, a shortage of fundings to support ventures due to Bitcoin-focused investment can also cause economic and financial instability.

[CageMabok]

I think it’s a bit of an overstatement to say “Bitcoin will shrink the economy.” In fact, the emergence of Bitcoin and other cryptocurrencies is not shrinking the size of the economy, but redefining the way wealth is stored and transferred.

I also think that Bitcoin has not shrunk the economy and instead can make many people understand how to see the value of money and also the economic growth of a country when they start to adopt Bitcoin. This means that Bitcoin has provided more good opportunities for everyone who believes in it so that the presence of Bitcoin has helped more people who are economically difficult and also people who have difficulty finding money through their certain jobs, although it will not be easy for many people to earn money by relying only on Bitcoin.

[Marvell1]

Bitcoin going mainstream doesn’t mean fiat currencies would be going out of existence. That assumption most individuals seem to have is actually out of place. You wouldn’t imagine any nation loosing that part to its authority and identity to Bitcoin ever.

Again, people do invest in real estates, have it seat there in years for it to appreciate in value and the economy still runs fine. Why should Bitcoin be any different?
Is it because @OP tends to view it for just a currency? What happens to Bitcoin serving as an asset…?

Bitcoin isn’t going to shrink the economy and people will always find means to use Bitcoin in the most beneficial at way.

In my humble opinion, saying that bitcoin will shrink the economy is like looking at the economy from a unidirectional point of view and delimiting the potentials or the scope of the economic sector of the world. What I mean is that the economy is wide and big enough to accept emerging technological innovations and solutions and still maintaining the old models and systems.

I don't see the fiat currency facing out at least not now and not in the near future. The massive adoption of the bitcoin and crypto technology won't stop people from using the fiat because they both have their own benefits and limitations.

We just have to think that if the adoption of bitcoin and cryptocurrencies shrinks the economy or reduces the appeal of fiat, governments will seek to discourage or eliminate cryptocurrencies immediately. Because fiat is a representation of government power and is the perfect tool for them to control the world economy as well as us. They would not be foolish enough to sit idly by or let someone who threatens their power become popular, that would be like shooting themselves in the foot.

Honestly, I don't see bitcoin playing any significant role or impact on the economy, let alone threatening the world economy.

[alastantiger]

I don't see the fiat currency facing out at least not now and not in the near future. The massive adoption of the bitcoin and crypto technology won't stop people from using the fiat because they both have their own benefits and limitations.

People mightn't accept Bitcoin instantly because they're used to using fiats all their lifes but as the adoption goes on, people will used Bitcoin. Bitcoin can't shrink the economy but it'll improve it. Everybody owning Bitcoin will make them to have a different thinking about money and will become more functional to the society, be financially informed and not just a liability. Having Bitcoin makes you an investors and that's how people will begin to reason and it affects other things in life. I don't see anyhow having the thinking of an investor is going to shrink the economy. I'll improve it as people begin to invest in businesses and start up theirs  making more job available for people to work, add value to the economy and everybody is happy. With more job creation, the economy will be the one benefiting the most of ias money keeps circulating in and out.

[nakamura12]

No bitcoin won't shrink the economy because all the money just circulates since you are paying fiat to the seller and the seller received the money. What do you think the seller will receive after selling his bitcoin? Does seller received another bitcoin for that matter? I don't think so that's why bitcoin won't shrink the economy when fiat would still exists as there are people who still doesn't in technology stuff like ourselves.

[adaseb]

You dont realize how big the entire world economy is. I don't think it will suck out any liquidity. Everyday people put money into their retirement and that money enters stocks and crypto and doesnt cause a dent in the reduction of world liquidity.

As much as I would want it to happen, I dont think the effect will be that large. Look today, we got good ETF flows, at least for BTC, but the price looks like it wants to head to the $45K area which is the area when the ETFs were first introduced. People are buying but price is not going up. Why? Because at the same time people who bought during the FTX crash at $15K are taking profit. Its why everything stays balanced.

[kro55]

I don't see the fiat currency facing out at least not now and not in the near future. The massive adoption of the bitcoin and crypto technology won't stop people from using the fiat because they both have their own benefits and limitations.

People mightn't accept Bitcoin instantly because they're used to using fiats all their lifes but as the adoption goes on, people will used Bitcoin. Bitcoin can't shrink the economy but it'll improve it. Everybody owning Bitcoin will make them to have a different thinking about money and will become more functional to the society, be financially informed and not just a liability. Having Bitcoin makes you an investors and that's how people will begin to reason and it affects other things in life. I don't see anyhow having the thinking of an investor is going to shrink the economy. I'll improve it as people begin to invest in businesses and start up theirs  making more job available for people to work, add value to the economy and everybody is happy. With more job creation, the economy will be the one benefiting the most of ias money keeps circulating in and out.

Bitcoin will neither shrink the economy nor improve the world economy. As far as I know, global GDP is over 100 trillion while bitcoin capitalization is only 1 trillion, how could it significantly impact the economy?

Bitcoin is not the only investment or the only inflation hedge in the world. If people still don't have a basic understanding of finance, of how the world economy works...then even if bitcoin is adopted and becomes more popular, it can't change that.

To improve a country's economy, we need to create more jobs and help people earn high incomes. I want to ask, how can you use bitcoin to create more jobs when it is just a currency or an asset?

[maydna]

Even if Bitcoin become widespread and many people saves their money in Bitcoin, that doesn't reduce liquidity in the financial system, lead to a decrease in consumer spending and cause major ructions in the global economy. People have their minds and will do their money for their life and their family so they will spend their money to fills their needs. Perhaps they found Bitcoin as their investment but they make the economy wheel will still running and their government will also use their regulation to make sure they can control their country. If people face an inflation, they will figure out how they can survive in the hard situation and perhaps they will tighten their seat belt until the situation back to normal.Bitcoin will not not shrink the economy although perhaps the economy may be change different than the past.

[Blitzboy]

I don't see the fiat currency facing out at least not now and not in the near future. The massive adoption of the bitcoin and crypto technology won't stop people from using the fiat because they both have their own benefits and limitations.

People mightn't accept Bitcoin instantly because they're used to using fiats all their lifes but as the adoption goes on, people will used Bitcoin. Bitcoin can't shrink the economy but it'll improve it. Everybody owning Bitcoin will make them to have a different thinking about money and will become more functional to the society, be financially informed and not just a liability. Having Bitcoin makes you an investors and that's how people will begin to reason and it affects other things in life. I don't see anyhow having the thinking of an investor is going to shrink the economy. I'll improve it as people begin to invest in businesses and start up theirs  making more job available for people to work, add value to the economy and everybody is happy. With more job creation, the economy will be the one benefiting the most of ias money keeps circulating in and out.

Traditional money thinking (spend, save, and occasionally the stock market) has held people behind for too long. Bitcoin alters all that. It makes you think like an investor. Now you're holding a growing asset instead of cash. You focus on the market, news, and technology. You become part of something greater. This is potent.

Suppose everyone has a stake in the game. Where everyone values long-term planning and responsible investing. We're talking about constructing a stable, successful future for everyone, not simply becoming rich. Old system doesnt work. Inflation, debt, and poverty are problems. Bitcoin offers escape. Take charge of your finances and develop something for yourself and your family. Yes, I believe. Bitcoin might transform the world. It wont happen overnight. It will take time, education, and people like you and me spreading the word.

[GiftedMAN]

I think it’s a bit of an overstatement to say “Bitcoin will shrink the economy.” In fact, the emergence of Bitcoin and other cryptocurrencies is not shrinking the size of the economy, but redefining the way wealth is stored and transferred.

Cryptocurrency has nothing to do with the economy because the crypto market is mostly dominated by individuals are investing in the market to make.momwy because the market is always volatile. The government too is investing in crypto just like the El Salvador that make Bitcoin legal tender for citizens to trade without any restrictions. Bitcoin was created to ameliorate the bank stress that many of use undergo to make transactions with lot of interest. If we check the record, we can see that since the since the launch of Bitcoin, it has appreciated more than 500% and it's still counting. If we check, we can see that their are countries that own Bitcoin that are even more than most of the big whales holdings.