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

[Z-tight]

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.

[HelliumZ]

Bitcoin definitely plays an important role in the economic development of a country although I live in a country where all activities of Bitcoin are completely banned so I cannot understand the importance of Bitcoin very easily. However, if Bitcoin is approved, the economy of a country will automatically change because if there are tourist areas in those countries where Bitcoin is approved, then if foreigners come to travel to that area, they can easily enrich the economy of that country by making payments through Bitcoin. Moreover, if foreign remittances are sent directly through bitcoins, there will be no other costs that can be easily exchanged with minimal costs.  In this way the economy of a country will continue to change which will be easily realized through Bitcoin.

[CoinFoxs]

Yes it can play a vital role in the economic growth of developed and developing countries but only when these earnings come directly under the finance department of government. Countries generating revenues by implementing taxes on resident’s earnings. So in this scenario taxes should apply on earnings from bitcoin.

[dezoel]

Because the use of Bitcoin can be used as a long-term investment asset because of hedging, it is no wonder that many countries continue to try to adopt Bitcoin in their own way.

Countries using Bitcoin as an investment asset will surely benefit from it if they have blockchain and market experts advising and managing the investments because buying and selling at the right time is the key to making full use of the opportunities to gain as much profit as possible.

If a country is investing at the wrong time and then selling its coins at the wrong time because of the money being reserved for very long, this is only going to make them suffer.

Bitcoin can contribute to a country's economic growth by becoming a country's reserve asset,  using El Salvador as a good example, They started buying Bitcoin when it was around $40k, There Bitcoin portfolio would right now be in a good profit, whereas the profit which has been realized can be used to develop the country and the profit be put in the other areas of the economy, thereby boosting the economy of that country.

Using Bitcoin as a reserve currency can have its pros and cons because its price doesn't move in one direction. It's true that if the price of Bitcoin goes up when a country is using it as a reserve, they will have a lot of profit from this, but if the price goes negative, they will lose money, and I don't think a country would be ready to bear that because the money will be in large numbers.

A country that has a government that works only for the people and doesn't have such thoughts might have economic growth using Bitcoin.

As of now, only oil rich countries are doing like you have mentioned. All other countries are becoming tax heavy which means there would be less chances for letting bitcoin grow in their country. Probably government may try to regulate bitcoin in such a way where they could still tax every bitcoin transactions. I am not seeing any possibility for such innovation to become practice. So, growth of bitcoin might remain without the support of governments.

[fullhdpixel]

In as much as I believe that bitcoin can play a good role in the economic development of the country, I also acknowledge the fact that it does not have direct impact on the economy since the government are not always not friends to Bitcoin. But then if bitcoin can improve the standard of living of the individual citizens of a country, it will indirectly improve the general economy of the country by fighting against inflation and unemployment.

If government can give free hands for bitcoin to co-exist, it will help the country to be identified in the decentralized financial industry.

That will only be true if everyone who invests in bitcoin makes a profit, but is it easy to make a profit in bitcoin and will no one lose money investing in bitcoin? We need to acknowledge that bitcoin is a financial market and it is a battlefield, where weak hands will become liquidity for diamond hands. That means there will be winners and losers, and how will we improve the economy if we lose money?

Bitcoin is just a currency or volatile asset, it does not create jobs so I do not agree that it will be able to reduce unemployment.
Why do we often say that we should only invest what we can lose or we need a job with a stable income before investing in bitcoin...? Obviously, bitcoin cannot play a role in reducing unemployment when it cannot create jobs.

Unfortunately there are many people who loses money with crypto investment. However, do not consider bitcoin as just an asset to invest into, remember that there is a currency part of it as well. What does that mean?

Just like how you would use fiat as payment, like you go to a shop, buy a shoe, and pay with your card and that means you are paying with fiat, imagine a world where everything you do is the same, you still go to the same shop, and you still buy the same shoe, and you still pay with a card, but instead this time crypto is taken away from your account, could be USDT or any other stable if you must. That is the way you should imagine crypto when you think of growth, because this is global currency and not one nation.

It means that you could work and earn money in crypto, and you could spend crypto and all of those equal to you having something much better. We are going to end up with a greater result, we just need time to make that work somehow.

[kro55]

snip

snip

Unfortunately there are many people who loses money with crypto investment. However, do not consider bitcoin as just an asset to invest into, remember that there is a currency part of it as well. What does that mean?

Just like how you would use fiat as payment, like you go to a shop, buy a shoe, and pay with your card and that means you are paying with fiat, imagine a world where everything you do is the same, you still go to the same shop, and you still buy the same shoe, and you still pay with a card, but instead this time crypto is taken away from your account, could be USDT or any other stable if you must. That is the way you should imagine crypto when you think of growth, because this is global currency and not one nation.

It means that you could work and earn money in crypto, and you could spend crypto and all of those equal to you having something much better. We are going to end up with a greater result, we just need time to make that work somehow.

I don't forget Satoshi's purpose for creating bitcoin was to become a decentralized currency. But even if bitcoin served as a currency, it would not solve unemployment or reduce poverty in a country.

Also, how will we use bitcoin as a currency when not too many countries have legalized it as currency. In my country it is not banned but I have never seen any store accepting bitcoin payments. What about your country?


If you don't use bitcoin and instead use stablecoins as currency, what is the difference here compared to fiat currency? Stable coins like USDT are pegged to USD and use a centralized system. So I don't see any difference in using them as an alternative means of payment, I even have to pay extra transaction fees even for my small transactions. Meanwhile, with bank transfers and cash, I hardly have to pay additional transaction fees.

One more thing, even if cryptocurrency is the world's currency, we still have to work hard to get it, it is not created to be distributed to us for free. Therefore, it cannot help us reduce unemployment, eliminate poverty or help the country's economy develop.

[Yatsan]

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.
Here are some recommendations:

Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.

Financial inclusion of common people: Bitcoin can contribute to the economic growth of a country by including a large population by opening access to savings and buying and selling beyond the limited services like conventional banking system.

Exchange of Remittances: Remittances are very important for the progress of a country. Bitcoin can play a real role in reducing the fees and time of traditional services when citizens of one country send remittances from another country.

From an overall perspective, a country can explore Bitcoin with their economy in the light of wide knowledge of the strategies to increase the holding and increase the scope of transactions and access to the exchange, which can contribute to the growth of that country in a big way.

Looking forward to your more recommendations.

So for me Bitcoin can make a significant contribution to a country’s economic development if it is integrated into traditional monetary systems or through blockchain technology. By developing economic policies and diversifying their economies, countries can become attractive to new technologies that create jobs. Similarly, bitcoin can promote financial inclusion by bringing banking and communications to a population that is underserved by traditional banks. We all know that the feature of Bitcoin can help in transferring funds abroad, reducing the transaction costs and processing time involved, therefore supporting economies based on such transfers. So for sure Countries should then support this by establishing a clear regulatory framework that encourages innovation while preventing security and regulatory concerns and investing in digital infrastructure support to adopt Bitcoin. And thats only my take on this topic but a lot can be done if all countries adopt to this innovations

[Yatsan]

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.
Here are some recommendations:

Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.

Financial inclusion of common people: Bitcoin can contribute to the economic growth of a country by including a large population by opening access to savings and buying and selling beyond the limited services like conventional banking system.

Exchange of Remittances: Remittances are very important for the progress of a country. Bitcoin can play a real role in reducing the fees and time of traditional services when citizens of one country send remittances from another country.

From an overall perspective, a country can explore Bitcoin with their economy in the light of wide knowledge of the strategies to increase the holding and increase the scope of transactions and access to the exchange, which can contribute to the growth of that country in a big way.

Looking forward to your more recommendations.

This can also make a huge difference in economic growth since it combined traditional financial systems with blockchain technology. A developing financial system and robust macro economy, Bitcoin can attract technology-based investors to establish new businesses reflected by El Salvador through its inclusion of Bitcoin in its economy. Furthermore, expanded financial incorporation can be accommodated with Bitcoin, which allows access to savings and services that traditional banking systems are incapable of effectively offering. By reducing remittance costs and timeliness, it avails a valuable alternative to conventional transactions that benefit countries dependent on remittances. For these benefits to be realized, states should produce unambiguous regulatory structures that foster innovation while also ensuring consumer protection and economic stability. Restoration of acceptance of Bitcoin can be fueled through investment in its digital infrastructure and public education. Research into new uses of blockchains for different industries would improve their transparency and efficiency, while global cooperation can bring in very valuable insights and best practices. With these things at hand, countries would be able to use the potential of Bitcoin to boost their economies and integrate it with corresponding meaningful monetary policy actions.

[laijsica]

Yes it can play a vital role in the economic growth of developed and developing countries but only when these earnings come directly under the finance department of government. Countries generating revenues by implementing taxes on resident’s earnings. So in this scenario taxes should apply on earnings from bitcoin.

Of course not. Taxation with Bitcoin is a complex proposition that should be done in coordination with centralized finance. However, a part of the conversion from Bitcoin to fiat is done by local intermediary groups and they pay taxes to the government of that country. There should be no separate taxation and provision of income tax already levied on them by the government and at the individual level. In that case incentives should be taken at the individual level because of adding more additional taxes to the country's economy.

[Nothingtodo]

A country's economic growth will be dictated by taxes and remittances.  But if Bitcoin is illegal in a country then there will be no tax on Bitcoin transactions. Economic development is not possible in a country if there is no tax so for now I think bitcoin will not achieve economic development for that country if bitcoin is not legalized for any reason.

[Lucius]

~snip~
Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.

Are you familiar with the current state of the economy in El Salvador? As far as I know, the number of Chivo wallet users is in constant decline, Bitcoin city is at a complete standstill, and Bukele is negotiating with the IMF for a loan to get out of the financial mess that the country is in and no one remembers since.

Bitcoin is not magic that saves failing economies, so how could it be when it is so volatile that in one day it can lose 50% of its value compared to fiat currencies. El Salvador is a country that renounced its own currency, and Bitcoin is just one more experiment that the current president liked, which does not mean that someone who will succeed him one day will have the same opinion.

My opinion is that Bitcoin is not intended to replace fiat currencies, but to be an alternative to them - and no serious country would ever accept something that it cannot control.

[tranthidung]

Bitcoin is not magic that saves failing economies, so how could it be when it is so volatile that in one day it can lose 50% of its value compared to fiat currencies. El Salvador is a country that renounced its own currency, and Bitcoin is just one more experiment that the current president liked, which does not mean that someone who will succeed him one day will have the same opinion.

Bitcoin market is smaller than stock market and it does now have magical power to fix macro things like global economy or national economy. It is only helpful for people as individuals to find a magic way to get rich or enrich their wealth through investment in Bitcoin for long term.

If a country can add Bitcoin to its national treasury and have good risk management for their treasury, that requires to have some other assets, not only have Bitcoin, they can hold their bitcoins for a long time and see good growth in value. But even so, it does not help to fix a national economic crisis that only can be resolved by government and combined efforts on many aspects in their country.

My opinion is that Bitcoin is not intended to replace fiat currencies, but to be an alternative to them - and no serious country would ever accept something that it cannot control.

Basically governments want to control things as much as possible and they don't suicide by accepting something they can not control but give power to their citizens.

[P3Key]

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.

Any country who own big amount of Bitcoin could also disturb the market which already volatile, for example when Germany sold their confiscated Bitcoin  from Movie2k, a film piracy website, with total amount $3B worth of BTC, it affected the price of Bitcoin to go down.

[Casdinyard]

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.
Here are some recommendations:

Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.

Financial inclusion of common people: Bitcoin can contribute to the economic growth of a country by including a large population by opening access to savings and buying and selling beyond the limited services like conventional banking system.

Exchange of Remittances: Remittances are very important for the progress of a country. Bitcoin can play a real role in reducing the fees and time of traditional services when citizens of one country send remittances from another country.

From an overall perspective, a country can explore Bitcoin with their economy in the light of wide knowledge of the strategies to increase the holding and increase the scope of transactions and access to the exchange, which can contribute to the growth of that country in a big way.

Looking forward to your more recommendations.

In some cases it could bolster a country's economy, I've seen that shit happen in El Salvador, and a couple other countries who accepted bitcoin as a supplementary currency, but here's the thing, why the fuck would you do that?It's not wise, cause it's volatile, decentralized meaning it's not just your citizens who will be playing with the money of your entire country, and furthermore, it's a pretty irresponsible thing to do to say the least. You don't have any other countermeasures as well as plans to support and lift your economy up, so much so that you'd end up crawling and begging to be helped by bitcoin and crypto? That's just stupid. That's no different from individual crypto enthusiasts and maximalists thinking that bitcoin's going to be the solution to their poverty.

[Haunebu]

Not at the moment if you ask me. BTC could help improve a country's economy drastically if its price fluctuations would minimise to a permissible level and if LN acquired mainstream support.

It's very difficult for either of these to happen thanks to which no big government in their right mind would try and utilise BTC for improving their economy.

[AprilioMP]

Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.

I cannot confirm for sure if a country as expected by its economy if it applies Bitcoin like El Salvador. For me this is about their readiness in dealing with all forms of consequences.
If you make El Salvador as an example, then from the investment sector it can help. The Bitcoin system is greater than the traditional financial system, I agree and we can feel it. Back again to the readiness.

We as personal making bitcoin as a long -term investment asset by making routine purchases with confidence will get a large price return when Bitcoin reaches the highest price with a large percentage of the purchase price, of course according to my mind, a country that has power over money sourced from money sourced from money sourced From income it would be better if they changed the fiat into Bitcoin and used as a long -term investment asset.

[Ojima-ojo]

Yes it can play a vital role in the economic growth of developed and developing countries but only when these earnings come directly under the finance department of government. Countries generating revenues by implementing taxes on resident’s earnings. So in this scenario taxes should apply on earnings from bitcoin.

I think the major country that Bitcoin help the economy most as the developing countries, because most of countries that have adopted Bitcoin at individual level are mostly developing countries, take El Salvador for example and also Central Africa republic who have adopted Bitcoin, it all started from the citizens before the government gave Bitcoin the legal tender in those countries.


So Bitcoin economic impact is more on the individual level than government, since most countries are even anti Bitcoin even some goes as far as banning Bitcoin even though the citizens in such countries still use Bitcoin to advance their economic life's.

[BALIK]

~snip~
Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.

Are you familiar with the current state of the economy in El Salvador? As far as I know, the number of Chivo wallet users is in constant decline, Bitcoin city is at a complete standstill, and Bukele is negotiating with the IMF for a loan to get out of the financial mess that the country is in and no one remembers since.

Bitcoin is not magic that saves failing economies, so how could it be when it is so volatile that in one day it can lose 50% of its value compared to fiat currencies. El Salvador is a country that renounced its own currency, and Bitcoin is just one more experiment that the current president liked, which does not mean that someone who will succeed him one day will have the same opinion.

My opinion is that Bitcoin is not intended to replace fiat currencies, but to be an alternative to them - and no serious country would ever accept something that it cannot control.

El Salvador is still trying to implement bitcoin in the country with various plans but so far has not achieved any significant results. Only government investment in bitcoin generates profits but they are insignificant and cannot help the economy. As far as I know their bitcoin investment is generating over $40 million in profit and how will this help a country's economy?

El Salvador's strength is tourism and its fatal weakness is gang violence. Their economy has improved somewhat in recent years as their president has somewhat quelled gang violence and boosted tourism. All of this has nothing to do with bitcoin.

People keep talking about bitcoin in El Salvador but they never take the time to learn about the economic situation there, they always assume that everything there is thanks to bitcoin but they have no proof. Also, the Central South African Republic adopted bitcoin and failed but I don't see anyone mentioning that. Bitcoin cannot improve or contribute anything to the economy, we should accept that fact.

[Lucius]

Bitcoin market is smaller than stock market and it does now have magical power to fix macro things like global economy or national economy. It is only helpful for people as individuals to find a magic way to get rich or enrich their wealth through investment in Bitcoin for long term.

I don't know how much the stock market is worth today, but I remember from before that the total value was about $90 trillion, so we can say that it is worth about a hundred times more than all the Bitcoins in circulation. When you look at the statistics, it is much clearer where BTC is at the moment, but this is a reality that many do not want to accept and live in some kind of illusion that BTC will improve the world's economy.

If a country can add Bitcoin to its national treasury and have good risk management for their treasury, that requires to have some other assets, not only have Bitcoin, they can hold their bitcoins for a long time and see good growth in value. But even so, it does not help to fix a national economic crisis that only can be resolved by government and combined efforts on many aspects in their country.

Many countries have very large gold reserves, and yet they have big problems - just look at the example of Italy, which is among the top countries with gold reserves, but it cannot improve its economic situation with them because the ECB does not allow them to do so. I don't know which serious country would dare to invest in BTC in the long term, given that it is still a risk, not only because of volatility, but also the possibility of hacking, forks and who knows what else.

[Rockstarguy]

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.