Bitcoin as a solution for inflation. Will Argentina adopt Cryptocurrencies like El Salvador?

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Bitcoin as a solution for inflation. Will Argentina adopt Cryptocurrencies like El Salvador?

Presently, we can notice the deteriorating economic situation in many South American countries. Not only Argentina but Brazil, Panama, and Paraguay also struggle with inflation. Alberto Fernández in his interview included several comments about cryptocurrencies. The President of Argentina suggests that the government is open to adopting Bitcoin into the financial system.
Recently, El Salvador made a brave decision and adopted Bitcoin as a Legal Tender. Should other countries follow their decision?
Covid 19 pandemic has exacerbated already high inflation in Southern America countries. We asked Experts about the effects of adopting Bitcoin as a Legal Tender in Argentina. Also they made their predictions about changing the cryptocurrency market.
President Alberto Fernández did not give a specific date for Bitcoin adoption but he admits that the government is open to making such a decision. According to what President Fernández suggests, let's focus on possible changes that the adoption of bitcoin may bring.

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We have asked 931 Experty community members questions related to "Bitcoin as a solution for inflation. Will Argentina adopt Cryptocurrencies like El Salvador?". We have received many valuable replies, the best ones (based on Experty community feedback) you can read below.

article avatarKen Smith

Enthusiastic

Can Bitcoin be the solution for inflation? Why?

I am a participant and faithful follower of Bitcoin, Cryptocurrencies and the real situation about inflation in my country Venezuela. And the answer is yes. In a country where 1 single commodity exceeds the minimum wage of a normal person is where the Bitcoin enters to be protagonist with the citizen in a country with inflation. The case of the Venezuelan and the Argentinean is similar. The monthly minimum wage is not enough to provide for the common needs, however, if that common person decides to work remotely online and receive earnings in Bitcoin, save them for a while and continue to accumulate, it will certainly improve his life and that of his family unlike working to earn $5 or maximum $10 a month and at the time of going out on the street, you spend $10 on 2 products. I say that because that was my life. Since 4 years ago I decided to go freelance online, my life has improved a lot. I am not affected by inflation in my country being in Venezuela and that is thanks to Bitcoin and Cryptocurrencies. Long live those who make life and economy in it.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

I believe that it would affect in a positive way in countries where inflation exceeds the minimum wage, making people who do not have so much economic possibility, making them even poorer. And it will be even more positive in resource-rich countries. Cryptocurrency adoption is necessary for everyone's future. Without a doubt, it is here to stay in my life.

article avatarYudha Eka Saputra

Web Developer

Can Bitcoin be the solution for inflation? Why?

In my opinion, is NO. Because high volatility on bitcoin price. The price is depends on rates on markets and this is will make more inflation even bitcoin can be "store of value" asset. It's just store the value, but no with the price keep stable. The right thing for replacing traditional money is with CBDC. So, the answer is NO.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

It can affect to other altcoin projects. Altcoin projects can provide a blockchain service such DeFi, CeFi, NFT and IoT to make real usecase in every aspects and can be accessible to everyone.

article avatarsekarat banget

Design

Can Bitcoin be the solution for inflation? Why?

Don’t Count on Bitcoin to Be a Sure-Thing Inflation Hedge. why? 1. Bitcoin has user autonomy Conventional fiat currencies are subject to multiple restrictions and risks. For example, banks are vulnerable to boom and bust cycles in the economy. Sometimes, these situations can end in bank runs and crashes, as has occurred numerous times in the past. This means that users are not really in control of their money. Theoretically, at least, bitcoin promises user autonomy because its price is not linked to specific government policies. This means that users and owners of the cryptocurrency are in control of their money. 2. Bitcoin transactions are pseudonymous Most online transactions require an array of information to identify the person conducting the transaction. For example, transferring money from one person to another can be done only after the identifying information for parties at both ends is verified. Similarly, online purchases also require you to enter identifying information to make a purchase. The verification process may prevent crime, but it also places an intermediary firmly in charge of the transaction, allowing them to control the provisioning of services to select parties. Bitcoin transactions are pseudonymous. While this means that they are not completely anonymous, the transactions can be identified only by using a blockchain address. An individual can have multiple addresses, just as they can have multiple usernames and passwords for a single account. Internet Protocol (IP) addresses or other identifying information are not required to conduct the transaction. 3.Bitcoin transactions are conducted on a peer-to-peer basis 4.Bitcoin transactions do not incur banking fees 5.Bitcoin payments have low transaction fees for international payments

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

I think it's been done by the state of el salvador, What cryptocurrencies have done, is people really embrace the idea of ​​no privacy. Nobody wants privacy anymore. They like the idea that everything is transparent and traceable.” Privacy, in this case, refers to an individual's ability to counterfeit money and evade taxes, activities that governments seek to control. Regarding the central bank's digital currency, Tucker said it was only a matter of time before the Fed Coin was introduced, as well as the El Salvador coin which had been officially announced to be the legal currency in the country.

article avatarBankole Oluwamayowa

Web developer

Can Bitcoin be the solution for inflation? Why?

Absolutely yes. I usually define bitcoin as a social network for smart people who like financial freedom. As such, any country that wants to be financially and economically free should embrace bitcoin. Inflation is an inevitable enemy allcountry will surely encounter, because of the diverse reason that leads to that. Among theses reasons are unemployment, importing more than exporting, deflation of fiat among other reason. If a country therefore embraces bitcoin, its annual transactional fees or charges in foreign exchange will automatically disappear which will help more circulation of fund. Besides, Bitcoin is structured technologically to encourage a deflationary attitude and a relatively stable store of value. Just like the role gold plated in the economy of most countries around the globe in the 20th century.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

Well, everyone around the cryptospace knows quite well that the price of BTC determines the major rise and fall in prices of the alts. Historically, BTC has experience surge in price more and more over time as a result of acceptability. As such, the more BTC is widely accepted, the more it's price surges which will in turn leave a foot print on the alts. In summary, BTC as a legal tender across all countries will enhance swift international transactions and as well leads to surge in prices of all other cryptocurrencies. So it's "a win win game"

article avatarHabibu Abdullahi

Developer Associate

Can Bitcoin be the solution for inflation? Why?

The short answer is Yes! Now the long one, in the case of Argentina and Latin America in general Bitcoin might help but from my experience of 6 years living in Brasil, the political and economic system are the major challenge.

article avatarSean Larkin

Traditional, Blockchain and Crypto CFO - Member of MMBA

Can Bitcoin be the solution for inflation? Why?

Bitcoin as a solution for inflation in Argentina This is an interesting question, as I prefer to look at bitcoin as a solution for inflation everywhere. There have been unprecedented amounts of money printing by central banks, and many countries have been embracing monetary policy that is contributing to inflation. Issues surrounding supply chain and workforce, resulting from a year and a half of bad public policy, are beginning to affect consumer prices as well. The combination of these two factors alone will fuel to increased inflation. Argentina is already behind on next years outlook from an inflation and fiscal policy perspective and 40% of the population is in poverty. There are no U.S. investment dollars coming into the nation, making the outlook even more dire. Meanwhile, the volumes in bitcoin trading within the country are soaring as the number of crypto wallets has done a 10x. If the government is smart, they will take heed of this in what we will call a ‘wisdom of the crowd’ moment. Following the lead of the population, it would benefit the nation to embrace Bitcoin, and the technologies that flow from bitcoin. Creating a friendly regulatory environment, encouraging bitcoin and adding bitcoin to the national balance sheet will do for them what their current monetary policy cannot seem to do.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

Should Argentina make Bitcoin legal tender while we are still in the current bull trend of this cycle, the affect on the larger crypto market would be significantly bullish. It would be reasonable for there to be a positive price impact and could lead to other countries taking the plunge with regards to embracing Bitcoin. Almost more importantly is the fact that this will create 40+ million new individually held, decentralized wallet holders. This is extremely bullish. The internet required that a ‘critical mass’ of individually held email addresses be reached in order for its’ true value to be realized. It is the exact same with the decentralized economy (internet of value). The difference is that, here, we need a critical mass of decentralized wallet holders to be reached. When this happens (and it will), the promises of Web3 and the metaverse will begin to become clear.

article avatarMirb Investments

Crypto Currency Specialist,Analyst

Can Bitcoin be the solution for inflation? Why?

Some financial experts believe that BTC does not have a long enough history to determine that, but I think that it is necessary to take a smart risk, because based on the overall situation, it could be one of the safer solutions. By July 28, about 18.77 million bitcoins had been mined, there were only 2.23 million left to put into circulation and this is one of the main reasons for BTC to be a haven from inflation.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

A lot of crypto projects were naturally tied to Bitcoin, and BTC has had an unstable path through history. Bitcoin as a legal tender turns on very quickly the accelerated stability and maturation of many crypto projects.

article avatarSergey Arefev

Director

Can Bitcoin be the solution for inflation? Why?

Of course, btc can be seen as a remedy for inflation. After all, its final amount is known and over time, after the end of the extraction of the last btc, they will begin to become less and less and therefore it will only become more expensive!!!

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

Naturally, with the time of increasing recognition of btc as a legal tender, it will only grow as the demand for it will grow accordingly. And then there's a bunch of great altcoins!!!!

article avatarBlessing Alabi

Crypto Enthusiast and Mathematician

Can Bitcoin be the solution for inflation? Why?

Yes, Bitcoin can be a solution for inflation. as we all know, in the world of digital currency today, cryptocurrency(Bitcoin) is taking the lead. Being a decentralised digital currency, Government cannot set a price control policy on it( meaning Government cannot control the price). This fact that government cannot control the price can make it become the solution for inflation.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

If Bitcoin is a legal tender today, it will enable the people around the world to be able to buy and sell physical products easily with digital currency and this will yield a great increase and progress in the crypto market. As we all know that a rise in bitcoin enables rise in many altcoins.

article avatarJames Barcus

IT VP

Can Bitcoin be the solution for inflation? Why?

Simple logic would say yes. Simply because the value is not based on the government, or GDP of the country. It’s value will increase over time compared to their own currency which will decrease in value. This should provide an economic stability that would greatly assist growth and future prosperity.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

The value of Bitcoin would continue to rise and become more stable. Crypto in general is a global economy where the whole world can help to determine its value. This can bring stability to many countries that need it. I also believe that it will aid in reducing corruption and economic dictatorships many governments use for control. It may actually give greater control to those who have large holdings in BTC which may prove to be as bad.

article avatarEbenezer Oyeodini

Crypto Blockchain Technology expert

Can Bitcoin be the solution for inflation? Why?

Bitcoin is the first cryptocurrency that has given mankind total financial freedom since its creation in 2008 and adoption in 2009. Many countries that have adopted Bitcoin in their financial system have seen the positive impact it created in their various countries. Bitcoin has served as the oil of these economies. Most of the banks in these developed countries has used Bitcoin as a form of liquidity in addition to the fiat money. So instead of these countries created more money which would have caused inflation in their countries have adopted Bitcoin to leverage the effect. The Central banks of these counties could not control the flow of Bitcoin because of its decentralized capability and more Bitcoin could not be created because of its fixed amount of 2.1million. This has helped these economies to control inflation in their countries and also help to create more jobs for miners in the crypto sectors, although it reduces banks jobs. So I think Bitcoin can be a solution for world inflation.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

Bitcoin if taken as a legal tender could cause positive impact to the crypto market because Bitcoin is the major determinant of the price movement in the crypto world of business. A major change in the price of Bitcoin could cause a ripple effect in the prices of other altcoins. The countries that have adopted Bitcoin would also know the benefits and uses of other cryptocurrencies, and this will create a sound financial system for them. There will be free inflow of international business using crypto because crypto has no boundary. In fact the adoption of Bitcoin as a legal tender will increase the adoption of cryptocurrencies in these countries.

article avatarJuan Diego Gomez Peña

UX Researcher and Designer

Can Bitcoin be the solution for inflation? Why?

Alberto Fernandez already has laser eyes. I am not very sure if it can be the definitive solution, at least not until bitcoin finds its average price in a few years and its volatility is not an extraordinary case. What I can be sure of, even if I am not an expert, is that bitcoin will undoubtedly help combat inflation in Argentina or in any other country where this problem resides. Especially since 38% of all dollars circulating in the world were printed in the last 18 months. There is no enduring courage. Its intrinsic characteristics, which at this point already sound cliché, make it the most attractive form of value in the modern world and if in the end, a catastrophic scenario can present itself where bitcoin loses all its value, the technology that resides inside bitcoin is the foundation that any administration should always have on the radar.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

I think that with a scenario of this type we could see the price oscillation between smaller and smaller ranges, reaching the average price pattern. But on the other hand, the opposite can happen, since less and less bitcoin will enter the market but its use will continue to increase, causing a significant reduction in the circulating supply in world exchanges and skyrocketing the price to the moon, which in simple terms may be what we all want, but not if the bullrun is parabolic and unhealthy for the market. El Salvador took the leap of faith and it seems that his plan is bearing fruit, but we will see what happens when the obstacles that any new path entails begin to emerge.

article avatarmahdi hosseini

Programming

Can Bitcoin be the solution for inflation? Why?

We can assume Digital Currencies as Next generation of currency in world and this is Inevitable. We can see what happened to universal economy during COVID-19 pandemic. inflation increased in all countries. Central banks print more money to provide more liquidity and in result more inflation happens. At the moment only digital currencies can solve inflation as a economic model because their value won't decrease in abnormal situations same as fiat currencies or maybe people decide to use gold and silver for exchange like first humans. The most important option in digital currency is controlling issued number of them. Watching all transactions and track them. Set better law against money laundering. More transparent finance . issue or burn units as much as we want to keep its value. Bitcoin has the power to be main global currency because it is most popular of them. But the main challenge is about Carbon Effect (fossil based power consumption) in CryptoCurrencies. How much faster we solve carbon effect we can use them in global faster. unfortunately today Digital Currencies are involved with whales and their decisions.so price and value are in fluctuation.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

When fiat money lost price according to inflation, other accepted currencies can raise. Less liquidity results higher price. Bitcoin can collect liquidity and reduce liquidity in society so inflation will decrease.but what will happen if all decide to sell their bitcoin. Who will control issuing a person?a politician?a government?

article avatarHenry Bill

Trader

Can Bitcoin be the solution for inflation? Why?

Yes, Bitcoin sure. It's one solution for inflation. The most current circulating coins are issued and controlled exclusively by the government. And when the government manages the finances and manages the economy in a weak way, inflation will become more and more serious. The traditional currency depreciated because of printing too much out of control. BTC has a small and limited total circulation. And BTC is divided among many private institutions around the world to hold. That makes BTC valuable and inflation-free. There is only one small problem that the cost of BTC mining is increasing day by day. And the fee per transaction also increases as they become scarce. that's not good if BTC wants to become the universal currency. But Currently there are many other alternatives. Those are the Altcoins. The question now is whether altcoins are strong enough to become a popular and accepted currency in many countries. it's a fierce competition. Thank, It's my idea

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

a good question. Everyone know about BTC, but Not everyone knows ETH, BNB, LTC, XRP or any altcoin. BTC has a very important role in the world of cryptocurrencies. Maybe BTC like as gold of cryptocurrencies. So Bitcoin as a legal tender, it will be a huge boost for the crypto market. I believe it

article avatarcrypto hunter

Crypto trader

Can Bitcoin be the solution for inflation? Why?

Yes it has the potential as we have seen through the past years how it manage to increase its value and still going strong and already adopted worldwide as means of payment which pushes its value higher as the demand increases and everyone wants a piece of Bitcoin

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

It will boost and build trust to the crypto market and community as it will encourage more to shift to crypto as alternative to fiat which makes more easier to transact with another without the need to go through centralized bodies/entities which gives more freedom to its users

article avatarFolorunso Daniel

Programmer

Can Bitcoin be the solution for inflation? Why?

Not really because the not all countries will still accept to adopt Bitcoin as their legal tender. To me it only just makes carrying money more flexible without restrictions and charges

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

It will be a good step in the right direction. This will open doors for inter-relationship with any country who also adopts same policy. Imagine going into any mall in the world with your card and you can buy something without having to change to its local currency

article avatarErdin Herdiansyah

Trader

Can Bitcoin be the solution for inflation? Why?

Limit supply and can't hack or manipulated. It’s helpful here to define inflation and look at a few historical examples. In general, inflation is a general increase of services and goods in a country over a sustained period of time. That’s the Wikipedia definition, but it’s helpful here to understand why this might be the cause: inflation generally comes about because of a general decrease in the purchasing power of a fiat currency. It is termed hyperinflation if the decrease in purchasing power reaches a critical inflection point where the decrease in fiat currency value and increase in prices for goods and services happens in a very rapid period of time.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

Price fluctuations in the bitcoin spot rate on cryptocurrency exchanges are driven by many factors. Volatility is measured in traditional markets by the Volatility Index, also known as the CBOE Volatility Index (VIX). More recently, a volatility index for bitcoin has also become available. Known as the Bitcoin Volatility Index, it aims to track the volatility of the world's leading digital currency by market cap over various periods of time.

article avatarSubhi Ash Shalih

freelancer

Can Bitcoin be the solution for inflation? Why?

No! Bitcoin an adverse impact on the environment, the extreme volatility (using the US dollar as a reference, Bitcoin 11 times more unstable than pounds and 3 times more volatile than the price of oil). This is the main point of the future of bitcoin. For example, in June 2021, the United States experienced a rise in inflation after legalizing bitcoin as a means of payment. This increase tends to bring chaos or instability to the world economy. However, I believe the future will be born environmentally friendly digitial currency that can replace the bitcoin to maintain stable inflation.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

First, we need an agreement on the legality of the digital currency as legal tender. Furthermore, countries should encourage people to use crypto currency "other than the bitcoin", which is certainly more environmentally friendly.

article avatarbong rat

labourer

Can Bitcoin be the solution for inflation? Why?

bitcoin will help because bitcoin is a store of value that will increase in value over time and will be far better then the ever decreasing in value fiat currency that they currently use. Bitcoin will save and help improve the lives of millions

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

it will create the price to go up because lots of people will use it and as it becomes part of everyones daily lives it will become more trusted and used widely

article avatarThomas Matkovic

blogger

Can Bitcoin be the solution for inflation? Why?

If Bitcoin were accepted as the world's reserve currency, this could potentially create an environment that could curb inflation and introduce a moderate amount of favorable deflation until all 21 million bitcoin are eventually minted.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

Bitcoin must be accepted by international financial institutions , world bank etc... before bitcoin might be in a position to become legal tender. It's not quite sure how El Salvador will deal with international pressure regarding this problem. Main idea is to use bitcoin to any debt settlement such as taxes, public or private charges and business dues. Legalizing Bitcoin as legal tender means governments will have to give sovereign backing to the cryptocurrency. Except El Salvador no other country has so far given Bitcoin, or any other cryptocurrency, the status of a legal tender. One of the major reasons for yet not legalising cryptocurrency as legal tender could be their highly volatile nature and the unpredictability of the disruption that they may cause.Legalising Bitcoin as legal tender will mean businesses must accept Bitcoin as a payment method, alongside the fiat currency – such as the US dollar, Indian rupee etc.

article avatarJackto Oghale

Self employed

Can Bitcoin be the solution for inflation? Why?

Yes bitcoin can solve the inflation problem in that what we term inflation is price increment. So what government of these country should do is to have a fresh start on all price fixing for all its goods and services using bitcoin as the principal legal tender, all bitcoin for all exchanges and trades within and outside its territories.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

Bitcoin as a legal tender will have a positive impact in the world economy. The crypto market will be affected by mass increase in users, increase in the spread of the crypto intelligence all over the world and the gains of other digital currencies as a result of bitcoin adoption and universally acceptability.

article avatarALABI ADEOLA MARTINS

COO

Can Bitcoin be the solution for inflation? Why?

Yes, Bitcoin and other capped crypto currencies can be termed as store of value compare to the native fiat which losses value overtime. With the current tide and trend in Bitcoin, massive adoption means more liquidity and more liquidity means more value storage

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

Bitcoin as a legal? This is a positive and first steps to economic growth and development. The crypto market will blossom and the adoption will give room for growth in the market

article avatarAQUARIUS HEAVEN OFFICIAL

CEO

Can Bitcoin be the solution for inflation? Why?

Bitcoin is a solution for sure ! As of all crypto currency’s cause it gives the lower class and poor a chance to earn so having more financial free people can only boost the economy of any country

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

It will only affect it in a positive way the more global the use the better for the market But the energy consumption problem would need alternative

article avatarLuca Magrone

Student

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

It would certainly bring value to the crypto markets, therefore increasing prices for various cryptos. Other than that being a legal tender doesn’t necessarily mean that it’s something accepted as a payment method.

article avatarDavid Filip

Product Manager

Can Bitcoin be the solution for inflation? Why?

Yes, for sure. The main advantage of the decentralized currencies is that it cannot be ruled and influenced by the national banks or states. It is clever way how to avoid the quantitave easing of national currencies. On the contrary you are unable to influence national economy via monetary policy. The potential of BTC is especially true with the more authoritarian states. It can help fight poverty, help unbanked and more. It is an option how to enter international trade and it will help to balance basic income across whole world. It will balance prices also. From the economical standpoint it is the true meaning of laissez faire.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

This will be helpful for other projects to get the recognition. There will be more use cases for other more smart contract oriented coins such as ETH and its competitors. I think that there is a room for growth of multiple platforms which will push for competition and in the end innovation. There can be a situation where we can have more legal tenders than BTC.

article avatarHasan Tolaema

chief executive officer

Can Bitcoin be the solution for inflation? Why?

If the world uses Bitcoin, there will be no more QE, and if so, many Superpowers will go bankrupt (in the subprime, if the US doesn't QE, the US is bankrupt by now, Japan and the Euro as well). The whole world uses Bitcoin like gold. no hard money No currency intervention, no Forex market to trade. We fly to Japan and use Bitcoin to buy ramen just like in Thailand using Bitcoin to buy boat noodles.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

When it was introduced to the world over a decade ago, Bitcoin was supposed to be a revolution in the finance ecosystem. But that revolution has hardly come to pass. The cryptocurrency’s tumultuous first decade has been marked by scandals, missteps, and wild price swings. After achieving a record high price of more than $63,000 in April 2021, BTC has fallen by 24% to nearly $48,000 as of August 30, 2021.1 But investors and the cryptocurrency’s enthusiasts have doubled down on their optimism regarding its future. As such, the coming decade could prove to be pivotal to Bitcoin and cryptocurrencies more broadly.

article avatarPrzemysław Tumidajewicz

Consultant

Can Bitcoin be the solution for inflation? Why?

In my view - it can`t. Inflation - or lack of it - is a product of many factors, but they mostly come down to responsible policy. If Argentina is unable to have this (as it has proven time and again), including Bitcoin in the financial system will not do much on its own. Bitcoin may however serve as a store of value if the Argentinian Peso crashes.

article avatarBhijan Neupane

Full Stack Developer

Can Bitcoin be the solution for inflation? Why?

Yes, as a crypto enthusiast I say, Bitcoin can be the hedge against inflation due to so many reasons. Bitcoin has a limited supply of 21 million and it is not like traditional finance in which paper banknotes can be printed according to the demand. Once 21 million bitcoin is mined, there will be no additional supply of BTC and this scarcity inspires Bitcoin to be digital gold to act as a hedge against inflation.

How Bitcoin as a legal tender could affect the crypto market if this solution is used more and more?

Recognizing Bitcoin as a legal tender means it also helps to increase the use-cases of cryptocurrencies with the increased adoption. You know, Bitcoin influences the price of so many pair strengths of the crypto in the cryptocurrency markets.

Summary

As you could probably guess, the opinions of experts are different in both topics. Talking about inflation we can't make clear predictions but the suppositions are worth reading.
There is a fixed amount of Bitcoin which allows circulation in the crypto market so the inflation won’t grow. Moreover, cryptocurrencies are not restricted by any government so the value of Bitcoin is equal in every county. That can be a milestone in online transactions. Also we need to remember that cryptocurrency has much volatility in price. This aspect makes Bitcoin a good store of value but not a payment method.
Predictions about the future of the cryptocurrency market are promising. Adopting Bitcoin on a large scale means enhancing swift international transactions, simplifying online transactions, or more stable and higher cryptocurrency value.
El Salvador, Argentina, and maybe other inflated countries can gain a lot if the government uses the possibilities of bitcoin wisely. Isolated cases of bitcoin adoption can make a difference in the cryptocurrency market. We can only observe the current situation and learn from it.

This is not a financial advice. Please do your own research and consider the risks of trading cryptocurrencies.

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