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

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

< Show Wisdom Collection: Bitcoin as a solution for inflation. Will Argentina adopt Cryptocurrencies like El Salvador?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 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 avatarBoris B

TECH

Can Bitcoin be the solution for inflation? Why?

Due to its deflationary mechanism ,halving etc and decentralised nature it is stronger chanse of success than fiat currency .Other coins,altcoins through burn process can achieve the same.

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

Well more and more other types of crypto currencies and solutions wil be trusted and accepted globaly.Demand will drive the value .Bitcoin is strongest security in digital currencies,like gold.

article avatarJibril Ahmad Wudil

Community Case management worker, crypto trader

Can Bitcoin be the solution for inflation? Why?

The issue here is that central bank money printing will lead to inflation or the decrease in the value of money over time because the more money printed the further inflation increase as it kills the value of money thereby making goods and services price increase and create hardship for citizens. While Bitcoin, by contrast, has a fixed limit of 21 million coins that can ever be created. This limited supply allows bitcoin to resist inflation. This is why I feel Bitcoin and other crypto currencies could be solution to ending not only Brazil's inflation but world over.

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

It will affect not only crypto world but all other business sectors and it could be both positive and negative as Bitcoin is a highly volatile cryptocurrency that can easily change its price by 5% to 10% and even more in a single day. This creates another issue for the merchants: they will have to change the price of their merchandise very swiftly, sometimes several times per day, which may cause major inconvenience for the business model. Also Bitcoin increase always affects other crypto currencies as when Bitcoin price goes down others follow suite likewise if it goes off so not withstanding something will have to be done to check the volatility if it was to be accepted as legal tender.

article avatarFatunase Ayodele

Junior Account officer

Can Bitcoin be the solution for inflation? Why?

What is inflation in the first instance? Inflation is the persistent and continuous rise in the general price level of goods and services over a given period; inflation generally comes about because of a general decrease in the purchasing power of a fiat currency Bitcoin is a decentralized, peer-to-peer cryptocurrency system that processes transactions through digital units of exchange called bitcoin. It was invented in 2009, and the Bitcoin network has come to dominate and even define the cryptocurrency space, spawning a legion of altcoin followers and representing for some users an alternative to government flat currencies like the U.S. dollar or the euro, or pure commodity currencies like gold or silver coins. Bitcoin is structured technologically to encourage a deflationary attitude and a relatively stable store of value that partially harkens back to the “gold standard”. In this way, the community acts as a place where investors and community participants can raise their hand against the inflationary consensus. It is in this way that we can see Bitcoin and cryptocurrencies like it acting as a true and meaningful hedge against inflation — and the economics and policy thought that drive it. It would be great if we could somehow magically determine when the world will have mass adoption of bitcoin, but we can’t. However, the more fiat currencies fail, which they inevitably will, the more people will choose bitcoin as an alternative. Source: forbes.com, investopedia.com

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

Bitcoin has user autonomy Conventional fiat currencies are subject to multiple restrictions and risks. 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. Bitcoin transactions are pseudonymous - Most online transactions require an array of information to identify the person conducting the transaction. 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. Bitcoin transactions are conducted on a peer-to-peer basis - The Bitcoin payment system is purely peer to peer, meaning that users are able to send and receive payments to or from anyone on the network around the world. Unless they are sending or receiving bitcoin from a regulated exchange or institution, the parties to a transaction do not require approval from an external source or authority. Bitcoin transactions do not incur banking fees While it is considered standard among fiat currency exchanges to charge so-called “maker” and “taker” fees, as well as occasional deposit and withdrawal fees, This means no account maintenance or minimum balance fees, no overdraft charges, and no returned deposit fees, among many others. Bitcoin payments have low transaction fees for international payments Bitcoin transactions are irreversible One of the characteristics of Bitcoin’s blockchain is that it is immutable. Therefore, transactions using the blockchain are irreversible and cannot be amended by a third party, such as a government entity or a financial services agency. Accessibility Because users are able to send and receive bitcoins with only a smartphone or computer, Bitcoin is theoretically available to populations of users without access to traditional banking systems, credit cards, and other methods of payment. Source- Investopedia.com

article avatarANDERSON SANTOS

ASSISTENTE DP

Can Bitcoin be the solution for inflation? Why?

Yes. The inflationary fear remains one of the main fears of the market as a whole. In Brazil, inflationary data indicate that the price surge should come to stay. And the dragon is terrorizing every country in the world. It shows its claws, flaps its wings and gobbles up the purchasing power of people everywhere. There is no escape. But there is an asset that can save everyone, a point of salvation, where the mythical beast doesn&amp;#39;t reach. Yes, bitcoin can be considered an information-immune asset. Cryptocurrencies were born with the idea of ​​being an autonomous financial system, without the need for a central bank behind it. Thus, to put new bitcoins on the network, it is necessary to carry out the mining process. This process basically releases new bitcoins into the network, validates as transactions and makes the whole process more secure. There is no backing behind it, unlike traditional coins. In theory, CBs can only issue paper money based on a backing, in gold or dollars, as is more common. &amp;quot;In theory&amp;quot;, because that&amp;#39;s not exactly how it happens on a daily basis. Central Banks are subject to monetary policies, which can change over time. The BC can start printing more currency even without having a backing for it, which will affect the purchasing power of that money. To put it simply, the Central Bank can &amp;quot;create&amp;quot; money, but bitcoin has a possible network limit of 21 million units. Because it is a limited asset, we call cryptocurrency &amp;quot;deflationary&amp;quot;. This means that the purchasing power of the currency increases over time. From the moment the last bitcoin is released onto the network, the law of supply and demand must prevail, reinforcing the deflationary characteristic of this type of asset. Inflation control is one of the issues that worries experts with El Salvador adopting bitcoin as one of the country&amp;#39;s official currencies. As the country does not control the issuance of cryptocurrency, if it is necessary to inject more money into the economy, as the US government&amp;#39;s stimulus program has done with the dollar, it will not be possible unless more currency is bought. Every currency undergoes fluctuations with the economy, whether of an inflationary or deflationary nature. However, there are hypotheses in which bitcoin gains purchasing power against other currencies. Bitcoin&amp;#39;s purchasing power is still small against the dollar, but it is more constant than the US currency. In African countries, where economies are constantly shaken by inflationary shocks, the use of bitcoins is already common. Even Latin America has similar examples: Venezuela and Argentina use cryptocurrencies due to the small purchasing power of their local currencies. The tenants of these countries see that each time the Venezuelan bolivar or the Argentine peso buys fewer items. On the other hand, bitcoin is still valued and worth a lot, despite the fluctuations. Unlike other assets, such as cryptocurrencies, they have not yet suffered their “fire test”, surviving various economic scenarios. Despite this, experts remain optimistic about the use of bitcoin as a store of value and portfolio diversification to keep inflation from rising in recent times.

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

It will be through Central Banks around the world that Bitcoin will be able to see its price soar in the market. The moment that government agencies apply in Bitcoins would seal an expansion of the decentralized market. With these banks investments in digital assets, the cryptocurrency should experience a sudden increase in its price. The Central Banks of several countries can start accumulating Bitcoins as a kind of reserve, it would be a “digital gold fever”. This moment should make the Bitcoin price soar and reach unimaginable values.

article avatarJansugi Goguadze

Driver

Can Bitcoin be the solution for inflation? Why?

No Bitcoin can become. Bitcoin will not stop inflation. Because cash is still dominant in absolutely every country. In order for Bitcoin to stop inflation, countries need to recognize Bitcoin as a state currency.

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

It will be very good for the crypto market. This has led to a strengthening of the exchange rate and a rise in the price of both Bitcoin and other currencies. But some coins that do not have a strong foundation will not be able to withstand the competition and will depreciate.

article avatarOlakunle Ajagbe

Student

Can Bitcoin be the solution for inflation? Why?

BITCOIN How Inflation Is Stealing Your Money: Can Cryptocurrency Solve Inflation on a Global Scale? PUBLISHED APR 7, 2016 12:55PM EDT How Inflation Is Stealing Your Money: Can Cryptocurrency Solve Inflation on a Global Scale? | NASDAQ This is a guest post by Chris Pardo and the opinions expressed are those of the author and don't represent the views of Bitcoin Magazine or BTC Media. Inflation is one of those read-the-small-print kind of taxes that people don't often think about even though it can have a major impact on their finances and, thereby, on their lives. Rising long-term inflation is more insidious than you might think because it can steadily and most assuredly decrease the value of your earnings/savings - especially, if your taxes aren't indexed to compensate you for the cost of inflation. Inflation has always been the bane of many businesses and individuals alike. One thing is clear: something needs to be done. If cryptocurrency, perhaps Bitcoin, was globally accepted as the world's reserve currency, how well could it manage inflation and provide transparency compared to the U.S. dollar, arguably the world's primary reserve currency ? The world of fiat currency seems straightforward enough: Delegate monetary policy to those elected officials most capable of keeping a standardized and stable medium of exchange going. In practice, however, things get complicated, and often the policies and the mechanisms to carry out the policies are convoluted and not as transparent as they could be. For example, the Federal Reserve System (the Fed attempts to manage inflation by using open market operations , the discount rate , and reserve requirements , but this monetary system has not been able to reduce long-term inflation. Much of this instability in the money supply is due largely to the practice of fractional-reserve banking/lending by commercial banks and lenders and the Fed's imprecise, volatile way of increasing and decreasing the money supply by using bond transactions, discount rates and reserve requirements, which ultimately swings the economy and the money supply exponentially upwards or downwards. With the current monetary system, regardless of how well the Fed tries to plan bond transactions, discount rates and reserve requirements to regulate the money supply, the practice of fractional-reserve banking/lending exponentially compounds the effects produced in response to even the slightest changes made to the money supply using the Fed's three primary monetary tools. Currently the Fed's policy on fractional-reserves requires banks and lenders only to keep meager reserves ranging from 0 to 10 percent, which allows banks to create upwards of 90 percent of their money out of thin air. Think back to the movie "Dumb and Dumber" with the suitcase once flush full of cash that Lloyd and Harry plan on returning to its owner - but they later ended up spending most of the money - leaving behind a pile of napkin IOUs instead. Our current situation is similar to this, but worse; the banks/lenders create upwards of 90 percent of their money by printing digital bank IOUs without there being any cash, "special" Treasury Department/Federal Reserve IOUs , to back up all of the commercial banks'/lenders' funds to begin with. Also, the fact that banks can charge interest on monies created through this process and often require people to pledge real , tangible assets as collateral for these bank IOUs is another issue altogether. But for the purposes of this discussion, the volatility created through managing money in this way seems to ultimately result in rising long-term inflation. In addition, considering the dollar is the primary world-reserve currency, this status creates a unique situation that allows the United States to print excess reserves beyond its domestic needs to help supply the international demand. The excess reserves created in this process can, in turn, potentially distort the very indexes used by the Fed to help manage the money supply, thereby creating a fairly unstable system for managing inflation in the long run. Perhaps it is time to transition to an alternative medium of exchange that is more transparent and effectively manages short- and long-term inflation. Cryptocurrency may be a solution to regain the value of our savings/earnings on a global scale. 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. In fact, a small amount of deflation can actually be a good thing - as suggested by the Friedman rule - and bitcoin would be deflationary until the fixed number of coins are finally minted over the course of time. Because Bitcoin is gradually minted at decreasing fixed rates determined every four years, it creates a deflationary effect, despite there actually being an increase in the money supply during this time which most traditional economists would recognize as a condition of inflation.

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

These characteristics make Bitcoin fundamentally different from a fiat currency, which is backed by the full faith and credit of its government. Fiat currency issuance is a highly centralized activity supervised by a nation’s central bank. While the bank regulates the amount of currency issued in accordance with its monetary policy objectives, there is theoretically no upper limit to the amount of such currency issuance. In addition, local currency deposits are generally insured against bank failures by a government body. Bitcoin, on the other hand, has no such support mechanisms. The value of a Bitcoin is wholly dependent on what investors are willing to pay for it at a point in time. As well, if a Bitcoin exchange folds up, clients with Bitcoin balances have no recourse to get them back.

article avatarIwona Lekka

Sans profession

Can Bitcoin be the solution for inflation? Why?

Specifically, bitcoins are immune to M0/MB inflation, meaning that the money supply itself does not inflate, except at the very beginning while the original 21 million BTC get distributed via the mining process. Once 21 million coins exist, they become deflationary since no new coins are issued and, as naturally occurs, money falls out of circulation as wallets are lost.

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

Bitcoin continues to ride waves of popular interest and market volatility. But behind the swings is an unwavering reality: The largest species of cryptocurrency doesn’t measure up to its promised benefits as a peer-to-peer network, a uniquely quick and efficient payment system, or a store of value. Bitcoin’s risks, meanwhile, are sizable. The creation and use of Bitcoin have been associated with a concentration of power among relatively few operators and owners, high energy consumption, market opacity, significant price volatility, and illicit and illegal transactions.

article avatarercüment temiz

cook

Can Bitcoin be the solution for inflation? Why?

Perhaps it is time to transition to an alternative medium of exchange that is more transparent and effectively manages short- and long-term inflation. Cryptocurrency may be a solution to regain the value of our savings/earnings on a global scale. 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. In fact, a small amount of deflation can actually be a good thing - as suggested by the Friedman rule - and bitcoin would be deflationary until the fixed number of coins are finally minted over the course of time.

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

Because Bitcoin is gradually minted at decreasing fixed rates determined every four years, it creates a deflationary effect, despite there actually being an increase in the money supply during this time which most traditional economists would recognize as a condition of inflation. But it is this fixed money supply that has the potential to move society forward as quickly as the original token system did that moved us out of the barter economy to something more efficient.

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

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