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

crypto: 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 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.

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

It will bring mass adoption, which will hugely make the crypto market more valuable. Actually, I am very optimistic about the upcoming El Salvador BTC legal tender adoption

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 .

Investment Specialist,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 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 from Port Harcourt, Nigeria

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 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 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 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.

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

Experience Experty at its fullest

Join to unleash the power of crypto wisdom and never feel FOMO again.

Sign up