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

increase: 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 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 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 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 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 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 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.

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

This should increase adoption and demand, in turn boosting Bitcoin price up. The scale of this will depend on how much will this main street adoption be worth, especially in comparison to institutional holdings.

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

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