Post
Topic
Board Bitcoin Discussion
Re: How can third-world countries counter inflation using bitcoin?
by
Gyfts
on 24/09/2023, 20:48:33 UTC
Bitcoin alongside other cryptocurrencies has aided the economic development of many countries.
How has BTC done that, as far as i know BTC doesn't directly help in the general economic development of a country, it can make cross-border payments easier for people of any country and it could also help some people make some profit if they can hold on to BTC for the long term, but BTC cannot bring a country out of inflation for example or better their standard of living. Governments wouldn't even adopt BTC, they'll prefer to print billions in fiat backed by thin air to make inflation better for the short while, and worse in the long term.

I'm a bit surprised at how critical people are with Bitcoin and inflation.

Once inflation has already hit, and the currency someone holds no longer has the purchasing power that it once had, then yes, Bitcoin isn't helpful. However, would someone holding Zimbabwe dollars in 2017 benefit from trading some portion of their dollars in exchange for Bitcoin? Seemingly yes, as Zimbabwe dollar inflation would hit 500% just a year later.

Bitcoin should be used as a precaution for inflation. Certainly citizens of third world countries would benefit from using it, even if it's a small amount. Their currency isn't as reliable as first world currency.