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

value: 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 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 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 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 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 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 avatarALABI ADEOLA MARTINS

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

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

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