Why we may continue to see a slow adoption of Bitcoin in developing countries.

[CTO114]

When we look at the advantages of Bitcoin, we point towards the ease or would have on solving the problems of flat currencies in the economy of developing nations, instead we see a strong resistance to follow the lead of nations like El Salvador and fully adopt Bitcoin.

This could be a reason why;
It's no news that highly infected economies use the inflationary trends to pay less dept in their nominal currency and then apply for more debt.
But with Bitcoin, this would not be possible because;  Bitcoin has a fixed supply, it's impossible to inflate it to service a debt, is not dependent on a state's fiscal policy, and can't be manipulated by a government.

Bitcoin makes it impossible for governments to inflate debt obligations. It forces a system where Fiscal policy in honest.

Hence a resistance to its increased adoption!

[Chifather247]

Your point hits the nail on the head. Many governments in developing countries resist full Bitcoin adoption because it ends their ability to print money and inflate away debt. With fiat currencies, they can create more cash to pay off loans in cheaper terms over time this is a common trick to avoid tough reforms like cutting spending or raising taxes.Bitcoin's fixed supply stops that completely. No printing, no manipulation by policy, no easy escape from honest budgeting. Governments lose this powerful tool, plus control over capital flows and the money supply itself.That's why we see bans, heavy taxes, or warnings from bodies like the IMF instead of following El Salvador's path. The resistance isn't about not understanding Bitcoin's benefits dear, it's about protecting their own power and shortcuts dear

[nakamura12]

Another thing is that government failed to fully take control of bitcoin that's why other governments from different countries find a way to make use of it like regulations for example where a platforms are forced to follow to avoid making it illegal especially exchange platforms like implementing KYC which in the past didn't have. Before there's no exchange that requires KYC especially casinos and taxes from other platform that's why it exists so the government can earn money by doing that.

[serjent05]

When we look at the advantages of Bitcoin, we point towards the ease or would have on solving the problems of flat currencies in the economy of developing nations, instead we see a strong resistance to follow the lead of nations like El Salvador and fully adopt Bitcoin.

Bitcoin does not solve the economic problem of a country like magic, yes, it may open new ventures, but somehow the government needs to do lots of work in order to take advantage of the potential in Bitcoin, but that is not a sure thing. One example is the country of El Salvador.  Did it prosper yet?

This could be a reason why;
It's no news that highly infected economies use the inflationary trends to pay less dept in their nominal currency and then apply for more debt.
But with Bitcoin, this would not be possible because;  Bitcoin has a fixed supply, it's impossible to inflate it to service a debt, is not dependent on a state's fiscal policy, and can't be manipulated by a government.

The main reason is that the government can't control Bitcoin due to its decentralized nature.  And probably the government can't find any advantage if they adopt it as legal tender.

[Odogwu-Blockchain]

The transparency of Bitcoin transactions alone can never let government use it for any financial management in any institutions, the system of Fiat lets them transfer money from government account to private account and vise versa without the consent of the masses, that's what birth the depth of theft in a country.

If there should be a system where the Fiat spending and tracking can be checked on an explorer, just like Bitcoin is, there will be a very big change in the government sector.

[7juju]

Government adopting bitcoin in developing countries doesn't stop them from using fiat in doing their normal businesses such as borrowing and debt repayment with fiat. Government can make bitcoin a legal tender in a country and still don't use it for any of their transactions. Adopting it is just a way of making the citizens have other options, and the government don't want that. They want everyone to be dependent on the fiat system they control. Non adoption of bitcoin in developing countries is a well calculated measure by the government to keep the masses totally dependent on their fiat system to make it easier for them to control the people.

[notocactus]

When we look at the advantages of Bitcoin, we point towards the ease or would have on solving the problems of flat currencies in the economy of developing nations

Bitcoin was not created to fix governments, their central banks, their fiat currencies' inflationary issues and common declines of purchasing power over time. You are very wrong if you think that Bitcoin can fix everything related to and created by governments, central banks and economy in nations globally. These things are in controlled of governments that create problems and must be the entities that fix such issues in their nations for their citizens.

Bitcoin has its mission to give people their "own Bitcoin banks" - with open-source & non-custodial walelts - and financial freedom for people who can take advantage of Bitcoin unprecedented value and price growths.

Fiat currency purchasing powers all decline with time, for example the US. dollar, while very oppositely Bitcoin has its purchasing power increases exponentially with time.
Declining purchasing power of the US. Dollar over time.

This chart is for Satoshi per dollar that presents the purchasing power of satoshi over years but it also presents the purchasing power of Bitcoin as we know that satoshi is one of Bitcoin units.


https://charts.bitbo.io/satoshi-per-dollar/

[TastyChillySauce00]

It doesn't need the government to adopt bitcoin directly, the citizen could always adopt bitcoin by themselves, when they see their fiat is inflationary at high rate, people will switch from bad money to good money and that good money is bitcoin.
We're seeing similar case in venezuela where people are switching to crypto because the inflation rate is high. At the end of the day if given choice people will choose the better option. All of your points are spot on though and definitely the reason why developing countries government are hesitant.

[Luzin]

Bitcoin makes it impossible for governments to inflate debt obligations. It forces a system where Fiscal policy in honest.
Hence a resistance to its increased adoption!

Imagine if all countries used Bitcoin and then they needed fiat funds. Then if they all throw it into the market, what would happen? As a policymaker of your country, you have to think from every angle. Risk management is necessary because this concerns the lives of all its citizens. The value is unstable and its nature is still in the minority, which will make it difficult for countries to adopt it directly. There will be various problems they will face, unless indeed the whole world has agreed, in which case the risk will be smaller.

[X-ray]

It's mainly as you said, they want control. The reason every countries have their own fiat is so that they can control their economy through fiscal and monetary policies, with bitcoin they lost that control.

And also, it's the same way some countries only limit legal tender to their own currency only. They know it might disrupt their economy and therefore they don't want to take risks.

Bitcoin being decentralized currency, doesn't go well with some countries' way of controlling their economy.

[GreatArkansas]

I somewhat agree with OP, in developing countries, yes. For the best example is here in our country, the Philippines. The Philippines is a developing country, and right now it has a lot of issues, which for me is much priority to solve these issues especiall corruption, rather than doing things that will help the country to adopt more Bitcoin.

But what El Salvador is a superb move as they became role model to other countries, like that move to start accepting Bitcoin as legal tender, it's just like movement where your country will be more known and a lot of people appreciate it but others not.

[goldkingcoiner]

When we look at the advantages of Bitcoin, we point towards the ease or would have on solving the problems of flat currencies in the economy of developing nations, instead we see a strong resistance to follow the lead of nations like El Salvador and fully adopt Bitcoin.

Bitcoin does not solve the economic problem of a country like magic, yes, it may open new ventures, but somehow the government needs to do lots of work in order to take advantage of the potential in Bitcoin, but that is not a sure thing. One example is the country of El Salvador.  Did it prosper yet?

El Salvador did not correctly implement Bitcoin adoption and kind of just left their citizens to their own devices to figure it out. Nobody really knows what to do, all they know is they got free money from the government. No plan, no motivation, no creativity and no actual adoption.

But does El Salvador profit from it's Bitcoin holdings? Obviously.

[SilverCryptoBullet]

El Salvador did not correctly implement Bitcoin adoption and kind of just left their citizens to their own devices to figure it out. Nobody really knows what to do, all they know is they got free money from the government. No plan, no motivation, no creativity and no actual adoption.

That was done by political willingness of El Salvador government while their citizens mostly were not ready, like your post says, most locals did not know what to do with bitcoins airdropped to their Chivo wallets, and with customers who paid bitcoins, and other things in their opinion were very inconvenient and not profitable for their business.

The 'adoption' in El Salvador years ago was very unnatural and inorganic so it was not sustainable.

But does El Salvador profit from it's Bitcoin holdings? Obviously.

The tracker on El Salvador portfolio shows that national portfolio's current value and ROI.
https://nayibtracker.com/
https://intel.arkm.com/explorer/entity/el-salvador

[TypoTonic]

When we look at the advantages of Bitcoin, we point towards the ease or would have on solving the problems of flat currencies in the economy of developing nations, instead we see a strong resistance to follow the lead of nations like El Salvador and fully adopt Bitcoin.

In my country, half of the total population is still unbanked, but despite this, we still don't have a strong adoption for Bitcoin. I believe it's mostly due to the lack of education and financial literacy. Majority of the population still don't have a basic understanding of what Bitcoin is or how it works. It also often gets tied to ponzi schemes and other crypto scams, which is why some people have a negative perception about it.

Even our famous tourist spot, Boracay, which was labeled as the "Bitcoin Island", has barely any merchant now that accepts bitcoin as payment. We even had a discussion about this recently in our local, and someone shared this video explaining why it didn't work.

[davis196]

When we look at the advantages of Bitcoin, we point towards the ease or would have on solving the problems of flat currencies in the economy of developing nations, instead we see a strong resistance to follow the lead of nations like El Salvador and fully adopt Bitcoin.

This could be a reason why;
It's no news that highly infected economies use the inflationary trends to pay less dept in their nominal currency and then apply for more debt.
But with Bitcoin, this would not be possible because;  Bitcoin has a fixed supply, it's impossible to inflate it to service a debt, is not dependent on a state's fiscal policy, and can't be manipulated by a government.

Bitcoin makes it impossible for governments to inflate debt obligations. It forces a system where Fiscal policy in honest.

Hence a resistance to its increased adoption!

What do you mean by "highly infected economies"? Do you mean the economies of underdeveloped countries? I don't know about any underdeveloped countries, that are paying their debts with their national currencies. Their debts are mostly in US dollars. No country would ever agree to pay it's national debts by using Bitcoin. BTC is highly volatile and national debts should be denominated in relatively stable fiat currencies like the US dollar(yes, I know that the US dollar is losing value as well, but the process is slow and the US dollar isn't volatile).
There are other reasons why BTC/crypto isn't adopted at a large scale by the underdeveloped countries, this has already been discussed multiple times on the forum.

[melinoe]

When we look at the advantages of Bitcoin, we point towards the ease or would have on solving the problems of flat currencies in the economy of developing nations, instead we see a strong resistance to follow the lead of nations like El Salvador and fully adopt Bitcoin.

In my country, half of the total population is still unbanked, but despite this, we still don't have a strong adoption for Bitcoin. I believe it's mostly due to the lack of education and financial literacy. Majority of the population still don't have a basic understanding of what Bitcoin is or how it works. It also often gets tied to ponzi schemes and other crypto scams, which is why some people have a negative perception about it.

Even our famous tourist spot, Boracay, which was labeled as the "Bitcoin Island", has barely any merchant now that accepts bitcoin as payment. We even had a discussion about this recently in our local, and someone shared this video explaining why it didn't work.

Thanks for sharing.

Truly, for some, it's hard to differentiate between genuine projects like BTC and real ponzis or coins created just to drain you.. It's part of the process to find out why that's wrong to take BTC as the rest of them coins.

[Somegory]

I am from a developing country and trust me when I say that we are one of the biggest adopters of Bitcoin, almost everyone here is buying and selling Bitcoin, although I don't have proof that they are all long term holders but the simple truth is that developing countries need Bitcoin the most.

In a country where your struggles isn't getting nowhere because of the conditions of the country and it's economy crypto have been a way to escape poverty for many, there are high numbers of people who have turned around their lives because of Bitcoin and crypto, this is why I believe that developing countries need innovation like Bitcoin to survive.

So many of them are trading on centralised exchanges, some are through p2p trade just to make little amounts of money per day to survive, while others are in for the long term.

[john_egbert]

I am from a developing country and trust me when I say that we are one of the biggest adopters of Bitcoin, almost everyone here is buying and selling Bitcoin, although I don't have proof that they are all long term holders but the simple truth is that developing countries need Bitcoin the most.

In a country where your struggles isn't getting nowhere because of the conditions of the country and it's economy crypto have been a way to escape poverty for many, there are high numbers of people who have turned around their lives because of Bitcoin and crypto, this is why I believe that developing countries need innovation like Bitcoin to survive.

So many of them are trading on centralised exchanges, some are through p2p trade just to make little amounts of money per day to survive, while others are in for the long term.

I wouldn't say it can save you from poverty.. You can't go into the crypto without funds or good income, and in countries like that that can be a big issue.. But if you are settled, you can try going into it to change the situation.

[Iranus]

Bitcoin does not solve the economic problem of a country like magic, yes, it may open new ventures, but somehow the government needs to do lots of work in order to take advantage of the potential in Bitcoin, but that is not a sure thing. One example is the country of El Salvador.  Did it prosper yet?

Indeed, Bitcoin has potential and can benefit a country's economy if they know how to apply it correctly. However, Bitcoin is not a magic wand that can solve all problems or boost the economy solely by relying on it.

The national economy is entirely different and far more complex than the economy of individuals or organizations. We cannot apply financial solutions designed for individuals to the economy of an entire country.

The main reason is that the government can't control Bitcoin due to its decentralized nature.  And probably the government can't find any advantage if they adopt it as legal tender.

That is definitely the reason. Because instead of viewing the problem from the people's perspective, if we should view it from the government's perspective. Clearly, the use of decentralized currency and limited supply does not offer them any advantage.

[Yaunfitda]

I am from a developing country and trust me when I say that we are one of the biggest adopters of Bitcoin, almost everyone here is buying and selling Bitcoin, although I don't have proof that they are all long term holders but the simple truth is that developing countries need Bitcoin the most.

In a country where your struggles isn't getting nowhere because of the conditions of the country and it's economy crypto have been a way to escape poverty for many, there are high numbers of people who have turned around their lives because of Bitcoin and crypto, this is why I believe that developing countries need innovation like Bitcoin to survive.

So many of them are trading on centralised exchanges, some are through p2p trade just to make little amounts of money per day to survive, while others are in for the long term.

I wouldn't say it can save you from poverty.. You can't go into the crypto without funds or good income, and in countries like that that can be a big issue.. But if you are settled, you can try going into it to change the situation.

Yes, I think nobody says that Bitcoin can save us from poverty, nowhere in the Whitepaper that you can find it. Nevertheless, it's our option to get out and be financially independent if we really look closely as how it grows in the last couple of halvings and if someone just hold on it for 4 years or more, they could be rich if they are living in a developing country. So I guess it depends on the situation, of people who are living in such developing countries are smart enough, then maybe they could have adopted it. But in order to fully embrace by the nation, government is the first one that should push it to their population. Like what El Salvador lead, a President who understands Bitcoin until IMF wanted to stop them.