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

price: 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 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 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 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 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 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 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.

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

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