BITCOIN AND ECONOMY

[Jibdeen]

Bitcoin has many things to do with the current economic situations in different countries,some of these what bitcoin has done to the economic of many countries are -
 first of all it provide employment and source of income thereby regulating the unemployment rate and increasing the efficiency of the economy.
 secondly bitcoin could have hep many countries if they would have acquire some and make it a legal tender years ago.
 thirdly it reduces crime rate in some countries because the reason for some of these crime is unemployment.
 And lastly bitcoin rescues many families and individuals get rid of poverty thereby increasing the quality of life ,helping businesses,and helping the economy in different ways.
Bitcoin has really help the economy , this is just a nutshell of some notable works bitcoin has done to economy of many countries so i don't really see the reason why the government of some countries failed to make it a legal tender till now even after seeing what it has done to their economy.

[348Judah]

Why not move this thread to economy.

Bitcoin has many impacts on the economy and human life as a whole, you can get more to back this up from how it adoption rate have always been increasing form day to day, bitcoin provides the Financial solution to the challenges we face with the use of centralized system and currencies, we could all see that having an alternative currency to fiat will reduce the heating pressure on lives in other to find the economy and financial situation the most suitable one they have always wanted, by starting with the achievement of tier privacy in finances.

[d5000]

I think from today's (2024) point of view you may overestimating Bitcoin's influence. For the future, I agree somewhat, the potential is there.

first of all it provide employment and source of income thereby regulating the unemployment rate and increasing the efficiency of the economy.

I guess this happened mostly in countries like Venezuela, where the local currency was so weak that Bitcoin as an alternative provided more stability for entrepreneurs in some cases. In other countries, it may have helped to create businesses in the crypto sector.

However, I think not even in Venezuela Bitcoin is/was important enough to really "regulate the unemployment rate". We'd be talking about perhaps 10k or 20k people involved in the crypto sector per country, and maybe a similar number of freelancers which would get crypto-related jobs they wouldn't have got if the payment was in USD.

So this is for now more of a "dream for the future", like the idea of "balancing salaries" I've exposed in my thread here.

secondly bitcoin could have hep many countries if they would have acquire some and make it a legal tender years ago.

A pro-Bitcoin policy like El Salvador's can "help" a country in two ways:

1) providing good conditions for a fintech sector dealing with Bitcoin and crypto,
2) as a part of the country's reserves, if the Bitcoin price increases.

But I believe in the current world of 2024 the first point only provides significant benefits for small countries, like El Salvador, because only if the economy is relatively small a strong crypto sector can make really a difference for the local economy. Again, this may change in the future, so a pro-Bitcoin policy is never a bad idea.

Of course if a country bought a substantial amount of Bitcoin in 2013 or so it could be rich now. El Salvador at least made about 30-50% profit for now.

thirdly it reduces crime rate in some countries because the reason for some of these crime is unemployment.
And lastly bitcoin rescues many families and individuals get rid of poverty thereby increasing the quality of life ,helping businesses,and helping the economy in different ways.

I think this, agalin, may have happened in very few countries like Venezuela with really extreme economic problems. But for other countries, this is again currently an overestimation of Bitcoin's influence, see above in my comment about its influence on unemployment.

i don't really see the reason why the government of some countries failed to make it a legal tender till now even after seeing what it has done to their economy.

This is a common misconception.

You don't need for Bitcoin to be "legal tender" for a pro-Bitcoin policy. "Legal tender" does not mean that it's "legal" to use it, it's that merchants have to accept it as a payment method.

I think it's better if people (merchants) can decide for themselves if they want to use Bitcoin or not. El Salvador's "legal tender" policy has for example led to many people without technical understanding to use the Chivo wallet which was affected by a major hack earlier this year.

In general for what you write to happen, Bitcoin must be used much more as a currency, not only as store of value.

[Gladitorcomeback]

thirdly it reduces crime rate in some countries because the reason for some of these crime is unemployment.

I don't think it's true because people who commit crimes because they don't have employment are those who have no knowledge or even money to get into Bitcoin or trading in general, they are not the kind of people who could invest money in Bitcoin or trading and earn money from it.

And lastly bitcoin rescues many families and individuals get rid of poverty thereby increasing the quality of life ,helping businesses,and helping the economy in different ways.

Wrong again. Bitcoin isn't a magic wind that you move and money comes out of it, to have access to Bitcoin or to tools and platforms where one can trade or invest and earn money require one to have necessary resources. Someone with no money and resources such as good devices or internet connection can barely have access to things such as Bitcoin or an exchange. So there is no way a poor person having no money or necessary resources can earn money using Bitcoin.

[FinneysTrueVision]

Bitcoin has not yet been adopted enough that it has a large-scale effect over any country’s economy. As small as its impact might be right now, if we see more initiatives similar to what has been going on in El Salvador then it could have massive benefits in the future. Elementary school kids are learning about Bitcoin and many of them could go on to become entrepreneurs. Bitcoin education has to be coupled with other measures dealing with crime reduction and fostering innovation so that people have options besides becoming gang members.

Even though Bitcoin has struggled to gain adoption, I believe El Salvador is doing the right things that will pay off in the long term. Other countries with high poverty and crime should emulate the good things that they have done.

[SilverCryptoBullet]

Bitcoin has many things to do with the current economic situations in different countries

Bitcoin has many things to do with Bitcoin communities but it has NOTHING to do with economic situations in many countries. These national economic problems belong to governments that are responsible to solve problems in their countries under their administration.

first of all it provide employment and source of income thereby regulating the unemployment rate and increasing the efficiency of the economy.

Bitcoin is not a source of job, not a job bank, not free ATM for everyone to come, get jobs and withdraw money.

secondly bitcoin could have hep many countries if they would have acquire some and make it a legal tender years ago.

The national economy and national treasury are big and Bitcoin can not help. Governments if put all national treasuries to Bitcoin, they will take very high risk and I am sure citizens will not support the idea.

You as a single investor can invest your money in Bitcoin, get profit from it or lose money with it, but effect is on you only. But if something went wrong with a national treasury, that is very terrible.

thirdly it reduces crime rate in some countries because the reason for some of these crime is unemployment.

Maybe in your imagination or illusion.

And lastly bitcoin rescues many families and individuals get rid of poverty thereby increasing the quality of life ,helping businesses,and helping the economy in different ways.

Bitcoin is not a part of financial, poverty rescue team. You can work, learn to get better job, work with better jobs and get better salary. Then invest your money in Bitcoin, hold it long term to get profit and change your life. But Bitcoin itself can not rescue anyone if the person does not do anything to change himself, knowledge, work, salary, nothing.

[BlackBoss_]

You don't need for Bitcoin to be "legal tender" for a pro-Bitcoin policy. "Legal tender" does not mean that it's "legal" to use it, it's that merchants have to accept it as a payment method.

I think it's better if people (merchants) can decide for themselves if they want to use Bitcoin or not. El Salvador's "legal tender" policy has for example led to many people without technical understanding to use the Chivo wallet which was affected by a major hack earlier this year.

Legal tender forces merchants in that nation to mandatory accept bitcoin from customers but are merchants happy with this law enforcement?

I guess most of merchants are not happy with this enforcement in El Salvador because some articles said that they were not happy to receive bitcoin, and lack of plan to hold or convert bitcoin to fiat, then price corrections, bear market affect their business fund. It does not help Bitcoin adoption in a sustainable way with simple thinking that if you have Bitcoin legal tender, you have all you need.

[Publictalk792]

Bitcoin has many impacts on the economy and human life as a whole, you can get more to back this up from how it adoption rate have always been increasing form day to day, bitcoin provides the Financial solution to the challenges we face with the use of centralized system and currencies, we could all see that having an alternative currency to fiat will reduce the heating pressure on lives in other to find the economy and financial situation the most suitable one they have always wanted, by starting with the achievement of tier privacy in finances.

Yes that is right Bitcoin is making big difference in economy and people lives. More and more people are using it which shows it is becoming more important. Bitcoin helps solve problems with traditional money and banks. It gives people another option which can reduce financial stress and give them more control over their money. Bitcoin also lets people keep their financial transactions private which is basic right. As Bitcoin keeps growing I think it can bring positive change to how we think about and use money.

[Helena Yu]

first of all it provide employment and source of income thereby regulating the unemployment rate and increasing the efficiency of the economy.

Bitcoin doesn't provide employment and source of income, can you show me which a trusted faucet site where I can claim at least 0.0001 BTC per hour? I consider earning $5 is already enough to live.

secondly bitcoin could have hep many countries if they would have acquire some and make it a legal tender years ago.

No one can know if countries where Bitcoin is banned will not "secretly" accumulate Bitcoin, making it a legal tender doesn't necessary mean people will use Bitcoin for paying bills and any other small transactions.

thirdly it reduces crime rate in some countries because the reason for some of these crime is unemployment.

Lol no, there are many crimes happened and the criminals use cryptocurrency to receive the money. Crime happens due to unemployment and it also happen due to greediness.

And lastly bitcoin rescues many families and individuals get rid of poverty thereby increasing the quality of life ,helping businesses,and helping the economy in different ways.

Bitcoin doesn't help anything, it depends on "ourselves".

If a company is seeking for senior programmer with $200K salary and they can only pay in USDT, but another company is also seeking for senior programmer with $10K salary and they paid in BTC.

If I'm a senior programmer, I would choose the first one, I can convert my USDT to BTC in few second.

Now the question is, do these poor people have a programming skill and have experience?

[pooya87]

I disagree specially for bigger economies. For starters bitcoin is still too small and its adoption is too low to have a strong impact on the economy.
Also you have to make a distinction between income and employment. One may start trading bitcoin or invest in bitcoin and make a lot of profit (which could be called income too) but employment requires jobs, bitcoin related ones. And there aren't that many available yet because there aren't that many bitcoin related businesses created yet to be able to address the employment issue. For example currently there are about 3 million jobless people in Spain, while there aren't even 3 million bitcoin related jobs worldwide to be able to cover that in one country alone.

[swogerino]

I agree that Bitcoin has helped a lot but I think has done so not in major economies, where I live now it has helped a lot during covid times as people who had saved or used it as a store of value was the people that did not felt that big the stopping of all activities and the government support was ridiculous giving out very small monthly amounts to support the families, so in extreme cases like covid when everything was halted it can help a lot. Best use case for me is for Bitcoin to be used as store of value.

[ethereumhunter]

How come Bitcoin provides employment to people while Bitcoin is not like a job. If they want to earn Bitcoin, they must search a job that paid them in Bitcoin or fiat. If they can earn Bitcoin from their job, that is because they work in that job and not because Bitcoin. Bitcoin is just almost like currency which you can accept. The potential of Bitcoin to be used as legal tender still be there but that will need to wait for the acceptance from every government so we must wait for more.

Crime is not related to Bitcoin because if they are unemployment and doesn't have a source of income, they may commit a crime because they want to have money to fills their daily needs. If they can have a job that can give them source of income, they may not risks themselves to commit a crime.

If a family want to use Bitcoin as their investment, they will have a chance to make a profit in the future. That is why they need to have money so they can invest in Bitcoin to prepare their future.

[examplens]

OP, what you wrote sounds like the empty promises of a politician.

first of all it provide employment and source of income thereby regulating the unemployment rate and increasing the efficiency of the economy.
 

How exactly is Bitcoin increasing unemployment on a more significant scale?
If a programmer moved from CSS programming to blockchain, it is not a reduction of unemployment, but retraining.
On what basis did you conclude that a large number of unemployed in a country will find a job because of Bitcoin?

*I say a large number because for this to be considered a serious factor, it must be in a higher percentage so that it is not considered an isolated cases

secondly bitcoin could have hep many countries if they would have acquire some and make it a legal tender years ago.

And this is quite confusing and general.
It is now clear to everyone that if they had bought Bitcoin 10 years ago, they would be rich today. A good part of poor countries (even poor individuals) do not have the luxury of investing today and waiting 10+ years to get new wealth. Certainly, poor countries need new and fresh profits the most, much more than rich

[kro55]

There is nothing wrong with you and some bitcoin investors wanting bitcoin to become something important in the world or play a role in the national or world economy. But we also have to be realistic and not be too delusional: we need to accept the fact that bitcoin has not had any significant impact or contribution to the economy of any country. It's too early to tell because bitcoin is still too small, not really popular, and not as widely used as we imagine.

How can Bitcoin create jobs, reduce unemployment and reduce crime rates as a currency or a risky investment? Stop exaggerating everything about bitcoin, Satoshi didn't create bitcoin to be a god to save the world.

[hd49728]

I disagree specially for bigger economies. For starters bitcoin is still too small and its adoption is too low to have a strong impact on the economy.

Bitcoin market cap is smaller than stock market cap and caps of other markets too. Its capitalization size in a national economy is very small and even I believe Bitcoin will continue to grow in adoption, value and price in future, it will not come to a time with great impact on national economy and global economy.

Also you have to make a distinction between income and employment. One may start trading bitcoin or invest in bitcoin and make a lot of profit (which could be called income too) but employment requires jobs, bitcoin related ones. And there aren't that many available yet because there aren't that many bitcoin related businesses created yet to be able to address the employment issue.

I very agree with you on differentiation between income and employment and many people misunderstood these terms.

There are jobs in Bitcoin and cryptocurrency industry but compares to traditional job markets, probably it is a smaller job market similarly to aforementioned comparison between Bitcoin market and traditional markets as well as national or global economy size.

Cryptocurrency job list can help someone to find remote job in Bitcoin and cryptocurrency field.

[Rockstarguy]

I disagree specially for bigger economies. For starters bitcoin is still too small and its adoption is too low to have a strong impact on the economy.
Also you have to make a distinction between income and employment. One may start trading bitcoin or invest in bitcoin and make a lot of profit (which could be called income too) but employment requires jobs, bitcoin related ones. And there aren't that many available yet because there aren't that many bitcoin related businesses created yet to be able to address the employment issue.

Bitcoin haven't improve any economy yet because it doesn't generate income just like that, what will can say about the impact of bitcoin since it existence is that it has been a good benefit to individuals as a store of value and also as an opportunity for people to invest and trade to obtain profit.

People should understand that bitcoin is here right now just to add value to the money we already have individually.   If the government decide to adopt bitcoin as a legal tender their is no doubt about the benefits it is going to yield but I doubt if it can be something that the economy can depend on. For me I think the main essence of bitcoin is just to assist the traditional currency and to help people to be financially stable as they invest in bitcoin.

[Finestream]

Why not move this thread to economy.

Bitcoin has many impacts on the economy and human life as a whole, you can get more to back this up from how it adoption rate have always been increasing form day to day, bitcoin provides the Financial solution to the challenges we face with the use of centralized system and currencies, we could all see that having an alternative currency to fiat will reduce the heating pressure on lives in other to find the economy and financial situation the most suitable one they have always wanted, by starting with the achievement of tier privacy in finances.

Bitcoin has certainly a lot of advantages that majority of the people haven’t realized yet. And up to this moment, despite of the lapses of fiat that may lead to its depreciation of value in the next possible years, still people or let’s say the government still prioritize fiat over bitcoin.

Lack of public education about bitcoin could be the most probable reason why these people are closed minded about bitcoin, when we all know that bitcoin could be the best answer to create progress on the country’s economy, most particularly for our individual’s economy.

[Nothingtodo]

Bitcoin and the economy complement each other because when a country's spontaneous use of Bitcoin increases, economic development will automatically build. But if Bitcoin is legalized along with the banking system, then spontaneous use of Bitcoin will only increase and the government will get the opportunity for economic development.

[Spaceman1000$]

Bitcoin has many things to do with the current economic situations in different countries,some of these what bitcoin has done to the economic of many countries are -
 first of all it provide employment and source of income thereby regulating the unemployment rate and increasing the efficiency of the economy.
 secondly bitcoin could have hep many countries if they would have acquire some and make it a legal tender years ago.
 thirdly it reduces crime rate in some countries because the reason for some of these crime is unemployment.
 And lastly bitcoin rescues many families and individuals get rid of poverty thereby increasing the quality of life ,helping businesses,and helping the economy in different ways.
Bitcoin has really help the economy , this is just a nutshell of some notable works bitcoin has done to economy of many countries so i don't really see the reason why the government of some countries failed to make it a legal tender till now even after seeing what it has done to their economy.

OP I don't understand what you mean by Bitcoin has provided employment, you didn't explain how Bitcoin has made such employment, so you can throw more light on that for clarity.
 I will agree with you that bitcoin is a source of income for investors that have made investment over the years and are getting their reward and interest from the investment, but this was not explicitly explained in your  remark as more flesh was needed to be added in your remark for us to understand what you are driving at.

About government making bitcoin their legal tender, don't forget that government of many countries already have existing legal tender that they use, so the acceptance of Bitcoin as a legal tender will come as a gradual process over time, and I hear that there are examples of countries that accept Bitcoin as payment for service made and the rest of it, so I believe is a gradual process.

[retreat]

Bitcoin only affects a few individuals globally and the amount is not as massive as you might imagine, because Bitcoin is mostly used as a transaction or investment, and its adoption is also limited, so let's just think rationally and don't exaggerate the presence of Bitcoin to the point of reducing unemployment rates, crime rates, etc., because that is not proven by concrete data.