Can Bitcoin play a role in the country's economic growth?

[icalical]

I agree that Bitcoin can contribute to economic growth in the fields of investment and reaching out another division of the financial sector. El Salvador boasts of being the first country in the world to use Bitcoin as its legal tender since 2021. It is too early to say anything for sure but the country has seen a high number of tourists and an increase in the inflow of money from abroad due to its attraction of Bitcoin users. According to the World Bank, the amount of money sent home by Salvadorans who work abroad may be as high as 24% of El Salvador's GDP. Bitcoin could make money transfer cheaper by reducing the fees, hence sending more money to the people.

But there is a flip side too. Critics of Salvadoran Bitcoin trial often say it has boom-and-bust cycles that can hurt those who cannot afford any loss at all. Furthermore, not all nations possess sufficient technological capacity or expertise to enable smooth entry of Bitcoin. On the other hand, if done cleverly Bitcoin may help diversify economies and give banking services to people excluded by traditional banks.

[Minor Miner]

I agree with the op about the potential use cases of Bitcoin. Attracting foreign investment, creating jobs, allowing more financial opportunities for the unbanked or insufficiently banked, and saving up on international transaction fees are all good points.
But when we talk about Bitcoin, it's also important to consider the risks and challenges. One of them is that Bitcoin largely is not accepted directly as payment, so people often need to sell it for local fiat to make use of it. Also, storing it on centralized platforms poses a big risk of losing your funds, whereas storing coins yourself means that if you lose your password, passphrase or whatever, nobody will be able to help.  

I think this challenges can still be bypass with good understanding, even with all these challenges Bitcoin still have good advantage that will be beneficial to people. If the government are ready to accept Bitcoin from their heart it will definitely make a good impact for the people and some people can also use it directly in exchange to gain other things. I think bitcoin has the capacity of making an impact to the economy somehow if the government really knows what they are doing and what they want.

I think people have little understanding of bitcoin better compare to some years back. It is known to most people that bitcoin is volatile now because cryptocurrency is known to people very well which the volatility of the market into be strange.

How will Bitcoin impact the economy? We need to show concrete impacts if we want to convince the government, they don't need vague and unclear ideas.
I wonder, how can bitcoin attract foreign investment? How to create more jobs from accepting bitcoin when it is just a decentralized currency, a means of payment?
Honestly, I can't imagine what role bitcoin will play in the economy or how it will help a country's economy grow. According to the white paper, all I know is that Satoshi created it to be a peer-to-peer currency that helps us protect our privacy. It was not created to save the world economy, don't exaggerate its power too much.

[Ale88]

Bitcoin can potentially play a role in the economic growth of a country which can make a huge difference in the multifaceted progress of that country. If Bitcoin can be integrated with the way in which the traditional financial system of the country is growing, the global economic system can be radically changed.

It can surely play a role but I think it could have a noticeable impact mainly if very small countries decide to use it/promote it. We all know about the El Salvador case, the experiment is going pretty well but at the end of the day we're talking about a small third world country. Let's say Brazil try to do the same, do you think it could have the same impact? For the moment, I would say no, it won't. I wish Argentina would do something about, that would be interesting.

[fuguebtc]

Bitcoin can potentially play a role in the economic growth of a country which can make a huge difference in the multifaceted progress of that country. If Bitcoin can be integrated with the way in which the traditional financial system of the country is growing, the global economic system can be radically changed.

It can surely play a role but I think it could have a noticeable impact mainly if very small countries decide to use it/promote it. We all know about the El Salvador case, the experiment is going pretty well but at the end of the day we're talking about a small third world country. Let's say Brazil try to do the same, do you think it could have the same impact? For the moment, I would say no, it won't. I wish Argentina would do something about, that would be interesting.

We do not have full and accurate information about what is happening in El Salvador. Their economy has indeed improved but is it due to the impact of bitcoin adoption or is it due to the wise economic policies of the country's leaders? Or even if bitcoin does play some role in improving their economy, that is not enough to assert that bitcoin can play a significant role in improving the economy of a country or the world.  Because besides El Salvador, the Central African Republic is another country that has accepted bitcoin as legal tender but as a result they have failed miserably.

So we can't just look at El Salvador and jump to the conclusion that bitcoin can play a role or has the potential to improve a country's economy .

[Smack That Ace]

Isn't it still quite risky for a country to reserves their fund in BTC? because of its volatility, especially for a third world country, unless the country will hold it with in a very long time.

I don't think it is even so good for countries to have a lot of BTC's in their reserves, yeah i know the network is censorship resistant and anyone can buy BTC, but governments are centralized and if they control a lot of the BTC's in circulation, it may not be good for the decentralized network, and could leave it open to manipulation. However, i don't even think too many countries are interested in storing BTC in their reserves, it is decentralized and it cannot be printed nor controlled, so it is not an asset they may be interested in.

They don't care about bitcoin, they don't add it to the national reserve assets not because it's decentralized or they can't control it. The simple reason is that it is not reliable as a store of value, especially when it comes to a country's reserves.

Bitcoin's volatility only benefits speculators, who are willing to take risks to get rich quick. Meanwhile, what the government needs is a stable and safe asset to guarantee when needed in emergencies. That is why governments increase their gold reserves whenever the world economy becomes unstable. They don't need a volatile and risky asset like bitcoin, we need to accept the truth.

[LDL]

It is okay for Bitcoin to greatly aid in the economic development of a country but there must be acceptance of Bitcoin in the political or economic context of that country. Bitcoin is like remittance if the people of the country can use it properly but most of the countries work against the acceptability of Bitcoin.

The economy of a country mainly depends on the manpower, especially the more productive the manpower, the more economically prosperous the country will be. I would not consider a country's economic prosperity to be directly dependent on Bitcoin, but if Bitcoin is legalized in that country, it will certainly be correlated with that country's economic prosperity. If the bank approves Bitcoin, then if the foreign remittance is exchanged through the bank, the government will definitely get a certain part from Bitcoin, that will be one of the ways to increase the economic prosperity of the country.