South African leader wanted Bitcoin and believed it will pay their debt

[pooya87]

If his understanding of the economics and the world is like this tweet then I'd be worried about South Africa if I were South African. There are multiple fundamentally wrong statements in that single tweet.

1. Bitcoin devaluing gold
That doesn't even make sense. First of all bitcoin has nothing to do with gold and is not doing anything to gold! They are completely independent and in fact gold has been on the rise. Even the recent drop showed that it is still strong because the global tensions are still high and on the rise. The world is accumulating gold, you don't want to miss that bus...

2. Inevitable debasing of gold reserve
This dude seems to have forgotten that 2 years ago gold was $1600 ish and now it is over $2000.
As I said with the global tensions rising, gold has a higher chance of continuing that rise than to drop.

3. Liquidate debt using bitcoin
This is the final proof that he has little understanding of economy. The South African National Debt which is in the hundreds of billions is the result of bad economic decisions, government "printing debt" and the GDP being less than a hundred billion not being able to fill the gap.
Introducing bitcoin in the mix will not solve any of those problems. Not to mention that bitcoin's volatility may make things worse. What will he do if bitcoin entered a bear market after the nation bought it? Like a repetition of 2018! Will he tell his people to "HODL" during the 85% drop? That doesn't work in a country... HODL is for individuals and on small scale...

P.S. To be clear I am not against countries adopting bitcoin as national reserve. But for god's sake don't pretend it will magically fix all economic problems.

[Zoomic]

They should fight corruption first in their country because this is the root cause of the problems almost every African country is facing. How sure are they that the country would be any way better when corruption is still there?

Sadly most politicians will say that yet don't do anything concrete because they don't want to fight the system. Not to mention some of them are just corrupt and enjoy the corruption too. I wouldn't be surprised if they say stuff like this just because Bitcoin is the new trend, and even if their plan is successful they'll ditch crypto when the bear market hits.

I won't take anything they say on social media seriously. Just watch what they're doing to analyze what their real plan is. It's better to be cautious, especially when someone plans to use crypto to be free from debt in 2 years.

To be honest, Political leaders now recognising bitcoin would have been something to be excited for,  but here, we are talking about an African politician. Let's just stay calm and see how everything unfolds in South Africa,  the end result will be politicians using bitcoin more for private benefits instead of the benefit of the country. I have read lots of news about African politicians and they all have one thing in common, they are all opportunists. I am afraid for South Africa because if the country turns to bitcoin as the country's economic saviour, no debt will be cleared in that two years and the politicians will have another opportunity to do divert funds.

[Lucius]

If you are South African, you might be familiar with him, as a political figure.

Is it an influential politician or someone insignificant who likes to babble a lot without saying anything? Since politicians from various countries are glorifying themselves on this forum, it would be good to write whether they are part of the ruling party or are they representatives of the opposition.

Although I'm not 100% agree with him about liquidating the debt thru Bitcoin, but still it's a good experiment as well for that country to make Bitcoin as national reserve and it seems to be the trend next year. And obviously, this is the effect of Trump 2.0 in the US.

When a clown from the US says that he will solve the national debt with the help of BTC, some others take it quite seriously - this is the same man who advised people to cure themselves of the corona virus by drinking disinfectants. To me it all seems like a competition of "Who's the craziest in this story?"

[Synchronice]

Bitcoin did not devalue Bitcoin and the prices of Gold is still on the rise.

Just for reference, the national debt of South Africa is in the hundreds of billions, more than 200 billion. His argument is solely on the grounds that Bitcoin will always rise in the future, which may or may not happen. I would think that reducing corruption within their country is a better way to solve their debt issues. If not, Bitcoin would just be an easier way to move money around their pockets.

His argument is very stupid and doesn't make any sense in real world. You can't become rich by holding Bitcoin. Someone has to buy lots of Bitcoins at each step of Bitcoin development and the demand should be very high. Then, you should be able to sell Bitcoin at a high price but in this case someone doesn't become rich automatically, they become rich because someone gave up on their fiat and gave to them in exchange of Bitcoin. How does the crash work? Someone buys at the pinnacle and then the price crashes, buyers buy it at each step of fall and long story short, in the end, imagine a pool where everyone throws money and the ones who take it the first are the winners.
I don't say that Bitcoin is pyramid or any sort of it, don't get me wrong, I simply say that it's impossible for everyone to become rich by owning Bitcoin. I think that it happens on the expanse of others, like early adopters being millionaires and billionaires now but modern adopters can't get that much wealth because Bitcoin won't grow that much anymore.

[|MINER|]

El Salvador has done it before, MSTR and Saylor proved their critics wrong, Bhutan sold recently but they continue to mine Bitcoin. So by the looks of it, investing on Bitcoin is sustainable and there are a lot of perks from it.

So if they will have to look at it, there is no question that they will need to execute it. Just imagine if US under Trump could be one of the biggest buyer for this year, how big is the bull run gonna be in 2025. They really need to look at Bitcoin as one of the assets that a nation can invest by next year.

Yes it is true that El Salvador and micro strategy and the Michael Saylor Proved that their critics were wrong but they also didn't do anything like magical. They put their hard earned money as investment on Bitcoin and then we are seeing that their critics were wrong.
And even then it could be possible on the early investor's but for now I don't think it will be that much easy for the South Africa I don't know what is there current debt amount maybe I series some were it is about 300 plus billion US dollar so based on their GDP and per capita income and also in current situation of market I don't think it will be such a wise decision for any country making their all reserve investment on bitcoin mining. But they can start with strategically that will be help for paying their debt.

[Wakate]

https://x.com/MzwaneleManyi/status/1871159105848742196

If you are South African, you might be familiar with him, as a political figure. Although I'm not 100% agree with him about liquidating the debt thru Bitcoin, but still it's a good experiment as well for that country to make Bitcoin as national reserve and it seems to be the trend next year. And obviously, this is the effect of Trump 2.0 in the US.

I think he could be making a sense in a long run if the country can invest in Bitcoin just like El Salvador that have made billions of dollars from investing in Bitcoin. If many countries take the approach, the price of Bitcoin will keep increasing and we could be surprised that Bitcoin will become scarce which will boost the price to keep going bull.

The problem is that many government of the world have not seen the benefits so far investing in Bitcoin, many will learn from El Salvador which had made a fortune from Bitcoin investment. The price of Bitcoin could hit an unexpected height by the time we see more adoption!

[finaleshot2016]

There’s a chance, but who knows, a lot can happen in cryptocurrency, so if they continuously adapt the use of Bitcoin and even invest in it, it could be life-changing.

Imo, right now isn’t a good entry for investment; we’re still on the 90k mark, and major holders still don't want to sell.

Also, the other way around, BTC’s volatility could affect them and add up on their debt.

[Zlantann]

When a clown from the US says that he will solve the national debt with the help of BTC, some others take it quite seriously - this is the same man who advised people to cure themselves of the corona virus by drinking disinfectants. To me it all seems like a competition of "Who's the craziest in this story?"

Clowns indeed. They have kept showing that they have little knowledge about Bitcoin. Mzwanele Manyi is a member of the South Africa Parliament which a policy making body but he cannot do a simple research about Bitcoin. His projections that the country can use investment in Bitcoin to upset national debt in two years is laughable. He has no knowledge about the Bitcoin cycle and could have learned these simple things if he did his research. Donald Trump saying so many things that one will begin to wonder if he understands how national and global economic works. After few months in office it will become clear that most of what he has promised are just wishful thinking.

[m2017]

If you are South African, you might be familiar with him, as a political figure. Although I'm not 100% agree with him about liquidating the debt thru Bitcoin, but still it's a good experiment as well for that country to make Bitcoin as national reserve and it seems to be the trend next year. And obviously, this is the effect of Trump 2.0 in the US.

If earlier individuals wanted to solve their financial problems with the help of bitcoin (instead of working or creating a business), now entire countries are suffering from this disease. If everyone just invests in bitcoin and does nothing, then who will produce goods and services? In my opinion, nothing will help poor African countries (in terms of economy) except trying to develop their economy and production.

I hope that it doesn't turn out that not very rich citizens of this country will have to pay for these experiments. Literally.

[Lucius]

When a clown from the US says that he will solve the national debt with the help of BTC, some others take it quite seriously - this is the same man who advised people to cure themselves of the corona virus by drinking disinfectants. To me it all seems like a competition of "Who's the craziest in this story?"

Clowns indeed. They have kept showing that they have little knowledge about Bitcoin. Mzwanele Manyi is a member of the South Africa Parliament which a policy making body but he cannot do a simple research about Bitcoin. His projections that the country can use investment in Bitcoin to upset national debt in two years is laughable. He has no knowledge about the Bitcoin cycle and could have learned these simple things if he did his research. Donald Trump saying so many things that one will begin to wonder if he understands how national and global economic works. After few months in office it will become clear that most of what he has promised are just wishful thinking.

I myself hope that at least some of the promises that we have heard for months will come true, because some people are completely convinced that BTC will become part of the strategic reserves of the US, and after that the same will happen in other countries - and that by the end of 2025 the price of 1 BTC will be at least $500k.

Of course, we can't rule out such a possibility, but people need to understand that BTC has a market cap of "only" $2 trillion, and the US public debt currently stands at over $35 trillion - in other words, even if the US owned all the BTC in circulation, they wouldn't be able to pay off even 10% of their debt with that money.

On a global scale, Bitcoin is still worth very little compared to the gold or stock market.

[retreat]

For Bitcoin to devalue gold is just a public deception, because gold is used by many countries in the world as an asset that backs up their currency and it is still used by many industries as their raw material - so its adoption is still high and that is what keeps its value stable and increasing in the long term. And also Mzwanele did not explain in detail how he plans to use Bitcoin to liquidate their debts, because if they hope that Bitcoin can liquidate their debts in 2 years, it means they are hoping for something uncertain, since no one can know for sure how the price of Bitcoin will be in 2 years, whether it will increase or remain at 100k.

So I think he is just talking without understanding the context of what he is talking about and it is nothing more than just public deception. If people were smarter, they should not believe what he says.

[|MINER|]

Any such move to use bitcoin to wipe out debts must run for at least 20 years minimum, maybe 50 years for optimal results. So the effects of this will not be seen in most people's lifetimes. Halvings take time to correct the price.

Actually now we will see many people who will promote Bitcoin because most people only talk about something when its price increases. This is not only applicable to Bitcoin. If we see that when the price of gold also increases, we see a lot of talk or a lot of news about it on TV media.
But in the case of Bitcoin, we see this more after halving on the bull season. Now people will spread Bitcoin as if Bitcoin has no volatility. And as a result we will see many people making wrong investments, I am sure that many people have invested in Bitcoin after giving such status to that African leader, even when the market is bullish.
I hope that when Bitcoin market correction appears, meaning that Bitcoin is already undergoing on a correction, those people will not face losses by selling under the effect of FUD. 

[Miles2006]

Another wrong impression as seen, at first bitcoin is perfectly fine for the economy growth not the other way round when investing at the moment it’s still not satisfying rather the real aim why investing is for paying off debt. We can all agree they never had plans to hold not until the price is doing well meaning if bitcoin fall presently he’ll say same negative words about bitcoin. Bitcoin correction is at the corner and what if everything never went as planned, I think at this moment any government or organization using bitcoin to clear their debt should be careful because it’s more perfect if they hold this asset for feature purpose.

[Mpamaegbu]

Bitcoin did not devalue Bitcoin and the prices of Gold is still on the rise.

I believe you meant gold there.

Honestly, I think so too. I'm kind of taken aback when people insinuate Bitcoin will displace either gold or fiat. I think they all will coexist and be subject to market dynamics of demand and supply. It's a choice people will make and we know how not everyone is glued to the internet or knowledgeable about using it. To those folks, how is Bitcoin going to be a preferred choice?

I would think that reducing corruption within their country is a better way to solve their debt issues. If not, Bitcoin would just be an easier way to move money around their pockets.

That's apt! I think this reckless corruption and financial impropriety is the bane of development for third world countries, not the lack of capital. We've more of selfish than selfless leaders in Africa, thieves who masquerade as leaders just to get into office to steal their people blind.

[shield132]

https://x.com/MzwaneleManyi/status/1871159105848742196

If you are South African, you might be familiar with him, as a political figure. Although I'm not 100% agree with him about liquidating the debt thru Bitcoin, but still it's a good experiment as well for that country to make Bitcoin as national reserve and it seems to be the trend next year. And obviously, this is the effect of Trump 2.0 in the US.

Gold is a real-life asset, Bitcoin is a virtual asset. We aren't at the highest level of digitalization because many people don't have access to the internet and many people, especially the older generation don't know how to use smart gadgets and the internet. People in governments are mostly above 40 years old, so they aren't good at digital products, so I think that it's early for us to move from Gold to Bitcoin. It might happen after the passing of several generations.

South Africa won't be able to liquidate their debt with Bitcoin within 2 years because no country is stupid enough to pump the price of Bitcoin for South Africa to later let them sell it at a high price.
I think that it will be good if they copy El Salvador's strategy of buying 1 Bitcoin every day but that doesn't mean they'll be debt-free in 2 years.

[Lucius]

~snip~
I think that it will be good if they copy El Salvador's strategy of buying 1 Bitcoin every day but that doesn't mean they'll be debt-free in 2 years.

Tell me what that strategy brought to El Salvador after years of investing in BTC? They have about $300 million in unrealized profits, an even higher poverty rate, and are dependent on IMF loans. Any government or politician who thinks that they will solve the economic situation of their country by investing in BTC has a big problem in their head or they don't know what they are talking about.

Bitcoin is primarily a currency, and even if some consider it exclusively something else, the times when you could earn a lot with a little money by investing in BTC are long gone.

[$weetne$$]

If you are South African, you might be familiar with him, as a political figure. Although I'm not 100% agree with him about liquidating the debt thru Bitcoin, but still it's a good experiment as well for that country to make Bitcoin as national reserve and it seems to be the trend next year. And obviously, this is the effect of Trump 2.0 in the US.

In Africa I do not see how they can make Bitcoin their reserve and it will work out perfectly for them when they have mostly corrupt leaders that only want to steal money from the government and use for their own businesses. The politicians will always want to steal money and Bitcoin will make it easier for them since they can move money in a large quantity and nobody will be aware that they are stealing money. Investing money into the economy and increasing interest from foreign investors to come into the country to invest in the infrastructure in place will help them more but they have to be true about what they want to achieve and have trustworthy leaders in power before they can achieve this, but as they keep electing bad leaders, they would not be capable of paying off their debts.

[sunsilk]

While that's a good encouragement for the Bitcoin community but there's more way to eradicate their debt through his leadership and going on with Bitcoin is just one step.

It won't be the total solution to their problem but at least he's got some enthusiasm on it just like us. But we have to face the reality that when it comes to these leaders.

There are hundreds if not thousands of ways for them to get out or lessen the ballooning debt of their country.

[bettercrypto]

Bitcoin did not devalue Bitcoin and the prices of Gold is still on the rise.

Just for reference, the national debt of South Africa is in the hundreds of billions, more than 200 billion. His argument is solely on the grounds that Bitcoin will always rise in the future, which may or may not happen. I would think that reducing corruption within their country is a better way to solve their debt issues. If not, Bitcoin would just be an easier way to move money around their pockets.

I agree with what you are saying, because assuming they can reduce their debt or pay it off if the corrupt officials in their country don't disappear, their debts will still remain large. Then I also believe that there are still too many corrupt people in their government today.

so I think they will never be able to get rid of their debt, they will be stuck there and stagnant in that situation in their country, but if their leader is not corrupt, Bitcoin can really be a tool for their problems little by little.

[Webetcoins]

There are more and more nations who are going up this path and I am quite happy about it because that's more money in bitcoin and that is why I believe that we are going to end up with a much better return without a doubt.

However, we are also talking about how we could end up with a much better return without realizing what kind of return that could be, and because of this we are going to end up with something much better, it is not going to be simple and it is not going to be easy, but we could make more money if we could convince our own nations as well. Americans somehow convinced Trump to support Bitcoin, Bukele at El Salvador did that before, and now this news. If we can all convince our own governments to support like this, we could see bitcoin growing even more in the future.