Post
Topic
Board Bitcoin Discussion
Re: how bitcoin and blockchain technology can be of help to poor countries.
by
tbct_mt2
on 26/02/2025, 15:24:51 UTC
But you also need to pay attention to the volatility of bitcoin, the volatility of bitcoin is unpredictable and you will suffer heavy losses if during the transfer, bitcoin suddenly drops 5-10%.
Volatility of Bitcoin especially in bearish months is challenge and it's not wanted by small businesses and merchants in El Salvador. They did not have plans to hold bitcoin as investors, and they lacked of strategy to deal with Bitcoin volatility. Additionally, for small transactions between merchants and customers, it's hard for merchants to convert bitcoin to for example fiat currency or stable coin, because it will cost them more in on chain transaction fee and trading or conversion fee.

Quote
Honestly, I don't see bitcoin bringing much benefit or having a positive impact in improving the economy for poor countries. It is just a volatile currency or investment, it cannot create jobs, cannot attract foreign investment into the country...how can it improve the national economy when it cannot solve the fundamental problems of the country?
It won't bring big impacts as poor countries have many big problems to solve, and Bitcoin can not change severity of corruption, bad governance and many social problems in those nations.

Their governments have to do more things to fix bigger problems and improve life quality in their countries, before doing something with Bitcoin that mostly relates to economic growth in their countries but only somewhat.