Post
Topic
Board Bitcoin Discussion
Re: What if the government of a country is irresponsible?
by
avikz
on 28/12/2022, 06:36:24 UTC
What if the government of a country is irresponsible and issues a large amount of currency to buy Bitcoin?

That's probably their step to curb high inflation and to right against the currency devaluation. Which country you are referring to? El-Salvador?

Quote
No matter what the reason is, inflation is already very serious now. If some unscrupulous governments print a lot of money in order to repay debts and fight inflation, of course it will not be one time. Credit money no longer has credit.

Money printing is not a solution to repay debts. That leads to hyper inflation like Zimbabwe and Venezuela. Rather adding bitcoin as a reserve currency, may help that country to repay their debt during next bull cycle. Probably that's another reason the government is adding bitcoins in their reserve.