Can Bitcoin crash the high cost of living around the world economy?

[serjent05]

With the high cost living around the world and the nature of fiat fluctuating here and there, can Bitcoin do the unthinkable? Because fiat is no more valuable as it used to be. Bills rising above fiat and the various government around the world grappling to stabilize their economy yet it's not working. Should the government switch to Bitcoin to enable them stabilize the economy?  If the various government around the world accept Bitcoin,it will give Fiat a break and it will bounce back.

One question, if we buy in Bitcoin, do the market prices change?  If I hold Bitcoin, do the commodities around me plummet in price?  If my government invest in Bitcoin, would it alleviate my kind of living?  If the government changes its currency in Bitcoin, would it make me rich without doing anything?

Bitcoin is just a currency, and it does not magically change everything around it when it is acquired.  All the prices and situations are still the same. Remember, acquiring Bitcoin is not free.  Everyone still has to spend an equivalent value to what the seller sees his Bitcoin in fiat currency.  Yes, there are options to work for it or mine it, but still, we need to offer an equivalent value, whether in effort or in hashes.

So if we want improvement, I think the best way is to work for it.  Use Bitcoin as a tool, but never rely on Bitcoin and do nothing to change your life because it is as good as who holds it.

[Furious 7]

With the high cost living around the world and the nature of fiat fluctuating here and there, can Bitcoin do the unthinkable? Because fiat is no more valuable as it used to be. Bills rising above fiat and the various government around the world grappling to stabilize their economy yet it's not working. Should the government switch to Bitcoin to enable them stabilize the economy?  If the various government around the world accept Bitcoin,it will give Fiat a break and it will bounce back.

This possibility can be if every country changes the way of storage in terms of the wealth aspect maybe this can happen but of course this is clearly not going to be possible globally even though we know that more and more countries are currently adopting bitcoin but that does not mean they make this the answer to their storage system especially since their governments already have an initial system where fiat becomes a way for them to continue to regulate their citizens.

So in this case I think our focus should not be too far to the government but enough to ourselves who live life because we will not be able to get out of the government system and their fiat but with the mass adoption of bitcoin by governments and even widespread acceptance makes us able to have other options from securing the value of our wealth and one of the investments bitcoin becomes a hedge that is very worth it today.  We will not be able to force every country to do the same but we can personally do that for our own benefit.

[Ambatman]

With the high cost living around the world and the nature of fiat fluctuating here and there, can Bitcoin do the unthinkable? Because fiat is no more valuable as it used to be. Bills rising above fiat and the various government around the world grappling to stabilize their economy yet it's not working. Should the government switch to Bitcoin to enable them stabilize the economy?  If the various government around the world accept Bitcoin,it will give Fiat a break and it will bounce back.

Well I don't really know what you think about Bitcoin
But rising cost sometimes has to do with supply and other type of inflation
Not necessarily monetary.
There's a reason the Gold standard was stopped
The government believe they need a currency they can create more of to regulate the economy.
And Bitcoin been accepted doesn't necessarily mean Fiat would rise.

[Rebirth01]

If Bitcoin is an asset then government can invest a whole lot into. If government can in bonds in the bank then government can also do the same in the Bitcoin economy. Yes, Bitcoin is volatile but their is nothing government cannot achieve if they really want to achieve it. Government can actually buy Bitcoin and resell it in a subsidizes price to her citizens that way government will make more money and the citizens also will have money. that is why i said government should legalize Bitcoin to make things easier for people.

[gracreavix]

Bitcoin can’t really solve the global cost of living problem. That idea is just hype. There are many other issues that make things expensive in the market. It is definitely not only caused by fiat currency. Production costs, importation and exportation issues, energy consumption, and so on all play a role.

Governments can’t just switch to Bitcoin like that. Even the gold standard they claim money was once tied to isn’t as straightforward as people think.

[retreat]

Should the government switch to Bitcoin to enable them stabilize the economy?  If the various government around the world accept Bitcoin,it will give Fiat a break and it will bounce back.

Bitcoin is not a solution to curbing inflation on a larger scale. While it can be used as a store of value, its ability to hedge against inflation remains limited. The most appropriate solution is for governments to implement more effective fiscal policies and for central banks to adjust their monetary policies accordingly. That is the only way to address inflation. Immediate adoption of Bitcoin will only create more complex problems and could lead to the collapse of the country.

[Bitcoin Smith]

How exactly are you proposing that Bitcoin will solve the high cost of living?

Imagine bitcoin itself is highly volatile, so it is not the best thing to use as currency when you want stability in prices. And the solution to the problem that you are talking about is not with bitcoin or any payment mode, it is stabilizing the demand/supply chain of every product. If oranges are not created enough as the world consumes then the price of oranges is going to skyrocket, so the problem is to grow more oranges.

[Floxynice]

If Bitcoin is an asset then government can invest a whole lot into. If government can in bonds in the bank then government can also do the same in the Bitcoin economy. Yes, Bitcoin is volatile but their is nothing government cannot achieve if they really want to achieve it. Government can actually buy Bitcoin and resell it in a subsidizes price to her citizens that way government will make more money and the citizens also will have money. that is why i said government should legalize Bitcoin to make things easier for people.

What benefits would it give for the government to invest heavily in Bitcoin only to sell it to the people at a cheaper price? Selling at a cheaper price means the government would be selling below the market price of Bitcoin. That would amount to losses for the government and add no economic value to the nation.

Again, Bitcoin's principles are against the idea of the government buying Bitcoin for the people and then reselling it to them. What if such transactions between the people and the government come with a price, something like KYC requirements that expose people's privacy and limit their freedom to self-custody?

The government does not need to buy Bitcoin for the people. It should create an enabling environment for people to buy Bitcoin by themselves freely and keep custody of their own Bitcoin.

[Joy- maker]

The fiat system already failed a long time ago, all thanks to the government. The government would not want to do that, switching to bitcoin to fix their economy is just not fixable. They might allow it but not switch completely. Indeed bitcoin would be a good edge against inflation but it's volatile nature might be a good reason for the government to accept it. Before now we had a few number of countries who showed interest and adopted bitcoin into their economy and for the few periods of which they did that, there was a significant boost in their economic situation. Some countries still don't buy the idea of cryptocurrency, some are illegal and even those which it's not illegal adoption is still much lower..

Your comment shows that you have a better understanding of the fiat system, the system didn't only fail it also destroyed purchasing power and weakened people's savings, and this mess was caused by the government.  Although it varies across different countries, it is worse in some countries than it is in others.

However, switching to bitcoin would help a lot as you stated, but i doubt if any country will abandon their currency and start using just bitcoin because it is a big edge against inflation.  And outside bitcoin being volatile in nature most government will not buy that idea, and you know.

[uneng]

With the high cost living around the world and the nature of fiat fluctuating here and there, can Bitcoin do the unthinkable? Because fiat is no more valuable as it used to be. Bills rising above fiat and the various government around the world grappling to stabilize their economy yet it's not working. Should the government switch to Bitcoin to enable them stabilize the economy?  If the various government around the world accept Bitcoin,it will give Fiat a break and it will bounce back.

People can use Bitcoin, but prices will still follow fiat's fluctuations and inflation. What can happen is that Bitcoin continues rising too, so you will need the same amount of Bitcoin or even lower amounts to acquire a same product along the years, while when acquiring it through fiat currency, you will constantly need higher and higher amounts.

To just use Bitcoin isn't the solution, though, as people need to have access to profitable jobs and sources of income. That is the most important thing.

[PrivacyG]

What stops the Governments from doing particularly the thing they have always done as in hyper inflation, replacing the currency, defaulting et cetera once again?  There is NO way they would drop on their own knees and say Bitcoin is better than all the other Currencies we ever had.  It would be exceptionally good for all of us.  But be realistic.  It will never happen.

[iBaba]

With the high cost living around the world and the nature of fiat fluctuating here and there, can Bitcoin do the unthinkable? Because fiat is no more valuable as it used to be. Bills rising above fiat and the various government around the world grappling to stabilize their economy yet it's not working. Should the government switch to Bitcoin to enable them stabilize the economy?  If the various government around the world accept Bitcoin,it will give Fiat a break and it will bounce back.

I don’t really think switching entirely to bitcoin would automatically stabilize an economy, because while bitcoin has a fixed supply of 21 million coins and is protected form inflation that is caused by excessive money printing. It is still highly volatile asset and government really need a certain level of flexibility in managing monetary policy, especially when there is economic crisis.

Honestly, I do believe that bitcoin can serve as hedge against currency devastation for individuals. Living in a country where the local currency has lost it significant purchasing power over the years has made me appreciate the importance of having alternative stores of value. Many people are turning to bitcoin not because it can replace the currency overnight, but because they want to protect part of their wealth from inflation. Bitcoin and fiat will likely coexist for a long time. Bitcoin can complement the financial system, but it is not a magic solution to all economic problems.

[Josefjix]

If Bitcoin is an asset then government can invest a whole lot into. If government can in bonds in the bank then government can also do the same in the Bitcoin economy. Yes, Bitcoin is volatile but their is nothing government cannot achieve if they really want to achieve it. Government can actually buy Bitcoin and resell it in a subsidizes price to her citizens that way government will make more money and the citizens also will have money. that is why i said government should legalize Bitcoin to make things easier for people.

If government is buying Bitcoin then they are supporting the fact that Bitcoin is above Fiat system, aren't you aware the government doesn't like cryptocurrency because it disrupt their plan, aren't you aware crypto lets the users to be their own bank, and stop depending on a centralized entity for survival? Aren't you?

If the government is buying Bitcoin, then they are doing it in a private and secret manner, for their own benefit not for the citizens.

[Darker45]

First off, the idea of a "government switch to Bitcoin" is far-fetched. If in the far future money is eventually separated from the state, there might not be absolute separation and so Bitcoin is less likely the replacement.

Second, except for those countries whose main problem is the indiscriminate printing of money which results into hyperinflation, I don't think Bitcoin alone drives a country's economy toward stability. Bitcoin doesn't make government leaders competent, honest, productive, and so on. Bitcoin doesn't create jobs, develop industries, strengthen production, and so forth.

Finally, thus far, Bitcoin is an asset that beats inflation. Prices of goods and services are rising, in fiat. In Bitcoin, they're falling. So, spend in fiat and save in Bitcoin.

[yhiaali3]

We have a real-life example of adoption in El Salvador. What has the official adoption of Bitcoin done for the Salvadoran economy? Have the economic problems been solved? Has the country suddenly transformed from a poor country burdened with economic problems into a rich country free of economic problems?

Yes, adopting Bitcoin may contribute to improving the economy somewhat and combating inflation, but it alone is not enough because the decline in the value of the currency is not due to the currency itself, but rather to the economic problems present in the country.

[Iranus]

I'll use myself as an example. I live in a country with a struggling economy, and any fiat currency I have devalues ​​daily. Bitcoin has improved my financial situation; whatever its price, it doesn't compare to the rate of fiat currency devaluation in my country. So, Bitcoin has been improving the finances of its users for a long time now.

Without Bitcoin, things would surely be worse. That's a proven fact, especially in developing countries with terrible economies.

If you have knowledge of finance and investing, even if you do not hold Bitcoin and invest in other financial market. You can still improve your financial situation.

In my opinion, Bitcoin is just a tool, and it offers a mix of opportunities and risks like any other financial instrument.

Improving your financial situation does not necessarily have to come from Bitcoin itself, but from your knowledge and your ability to make sound decision.

[Die_empty]

We have a real-life example of adoption in El Salvador. What has the official adoption of Bitcoin done for the Salvadoran economy? Have the economic problems been solved? Has the country suddenly transformed from a poor country burdened with economic problems into a rich country free of economic problems?

Yes, adopting Bitcoin may contribute to improving the economy somewhat and combating inflation, but it alone is not enough because the decline in the value of the currency is not due to the currency itself, but rather to the economic problems present in the country.

El Salvador benefitted from investing in Bitcoin since they are making profit for hodling. Making Bitcoin a legal tender gave citizens an alternative and also contributed to an increase in government income from tourism. But like the rightly said Bitcoin is not the only solution to a country's economic problems. If the necessary positive economic processes are not in place in a country, Bitcoin might do little or nothing to help the situation.

Several economic factors like interest rates, fiscal policy, or money supply affect the inflation rate of a country. Bitcoin can be used as a hedge against inflation in a Fiat economy, but not a remedy.

[Oasisman]

If the various government around the world accept Bitcoin,it will give Fiat a break and it will bounce back.

Can you explain more about this?
When the vast majority of governments start accepting Bitcoin as legal tender, do you think people would hold more to fiat when it continues to inflate? Fiat would most likely collapse rather than bounce back. Of course, people would choose to hold Bitcoin more, as it has a limited supply and it won't gradually lose value like fiats do. Governments don't want that to happen, nor do they want to replace fiat with something out of their control.

[SilverCryptoBullet]

Can you explain more about this?
When the vast majority of governments start accepting Bitcoin as legal tender, do you think people would hold more to fiat when it continues to inflate? Fiat would most likely collapse rather than bounce back. Of course, people would choose to hold Bitcoin more, as it has a limited supply and it won't gradually lose value like fiats do. Governments don't want that to happen, nor do they want to replace fiat with something out of their control.

Bitcoin is a favorite asset for many people who want to have something against inflation issues and decrease of purchasing power of fiat currencies, that's very right.

However, it is too optimistic about the future like "vast majority of governments start accepting Bitcoin as legal tender" as you discussed in your post, in your opinion and speculation, when will it happen?

Governments can allow using and owning bitcoins in their nations but making Bitcoin as legal tender is too much with them. I am very doubtful that in the future, most governments will make "Bitcoin legal tender".

Positively, the legality status of Bitcoin globally at the present is good enough.
https://newhedge.io/terminal/bitcoin/legality-map

[Swordsoffreedom]

We have a real-life example of adoption in El Salvador. What has the official adoption of Bitcoin done for the Salvadoran economy? Have the economic problems been solved? Has the country suddenly transformed from a poor country burdened with economic problems into a rich country free of economic problems?

Yes, adopting Bitcoin may contribute to improving the economy somewhat and combating inflation, but it alone is not enough because the decline in the value of the currency is not due to the currency itself, but rather to the economic problems present in the country.

El Salvador benefitted from investing in Bitcoin since they are making profit for hodling. Making Bitcoin a legal tender gave citizens an alternative and also contributed to an increase in government income from tourism. But like the rightly said Bitcoin is not the only solution to a country's economic problems. If the necessary positive economic processes are not in place in a country, Bitcoin might do little or nothing to help the situation.

Several economic factors like interest rates, fiscal policy, or money supply affect the inflation rate of a country. Bitcoin can be used as a hedge against inflation in a Fiat economy, but not a remedy.

Tourism was already an important part of El Salvador economy before the country adopted Bitcoin. Recognizing Bitcoin as legal tender only provided a modest boost to the sector by attracting Bitcoin enthusiasts and increased international attention

El Salvador made Bitcoin legal tender but in reality, 95% of its citizens do not want to use bitcoin in that way. They still prefer the USD and traditional payment method

The biggest benefit the Salvadoran government has gained since legalizing bitcoin has come from investing in it. However, so far they have only been buying and buying, never selling to serve the national interest. Therefore, it can be said that Bitcoin has not yet made a significant contribution to or improved their economic situation.