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

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.

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"

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.

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?

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

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.

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

Thomas Matkovic

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.

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

trader

Can Bitcoin be the solution for inflation? Why?

yes, because bitcoin has no citizen so anyone can use it, we know bitcoin is not fiat currency so when there is financial inflation, bitcoin is an option

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

because bitcoin is not the same as fiat currency, it uses the latest technology in conducting trades or transfers, considering that for now bitcoin is not fully trusted, but in the future everything will change

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