This partly FUD,of course there are regulations needed - but there are also some assumption from Hanke that are generally pessimistic. He states even though, BTC should become a public tender he states that there will always be conversions from BTC to USD to buy stuff in brick and mortar stores. Then he states that 78% not even have an savings account. Well if BTC becomes an legal tender you can use BTC in stores LIKE the USD.
They might be already facing unprecedented problems that they didn't expect, though they have to deal with the problem properly if not this could hamper the image of crypto from other countries also thinking of adopting it
We can't really be sure about that, if it is always positive these governments would've already adopted bitcoin years ago, volatility is not and will not always be good for the economy , volatility in a business is the worst thing a business wants
I don't think so. It would have effected only the major economies. At first there will be some reaction in the economy but later it will be settled out. Only time will tell, we can just wait and watch.
I guess other countries will possibly make El Salvador a case study to be properly observed before acting on the thoughts of adopting bitcoin. I really hope it works out well for them for the sake of everyone else.
It would make sense for the other countries to only take action after they see the outcome in El Salvador because that will lower their risk. To be honest, i was expected Venezuela to be the first country to officially legalize it, given their stance on crypto.
yeah I think so too, and I think salvador depending on how el salvador's economy gets after a few months and how they regulate and adopted crypto the specificz might also impact the decision of other countries
The normal flat currency is also volatile because of inflation and currency devaluation ,so I see no reason and difference in between as how it might affect negatively .crypto even help to reduce inflation
Great one from you, they monetary policies will be a good one for them , I also feel that since they adopted cryptocurrencies during the bearish moment it is an advantage for them because when the market rise most of them will be richer in which they can invest on other offline business to serve as secure measures against volatility of cryptocurrencies.
The normal fiat currency though has lower volatility movement if you compare it to cryptocurrency which can move up or down to 200% , or even 1k% in a week
That's the fact and that is why people are rushing into cryptocurrency because of the gains you can easily make in a very short time despite the risk in it.
It depends on the country,there are country that the price volatility of their currency is high and inflation level and crypto is the next option to consider ,because a price of an it's flunctuates on a dailys
Countries like venezuela had very poor currency value so cryptocurrencies became their best option, El-Salvador had to burn their Currency to adopt dollar and eventually cryptocurrencies.
think venezuela have to just adopt the use of crypto currency to prevent instance of more depreciation in their currency value ,since they faced huge inflation
if you look at the history of hyperinflation, it often ended by changing the inflating currency against another often called dollarization. Unfortunately, without preparation its not possible to switch to crypto as an legal tender, but this change always needs a surprising moment, that not single individuals can benefit from. Also, a currency switch needs stiff controll on the monetary system - which is not possible if you look at crypto (I need to admit, I didn't study stable coins to much)
Earnings Disclaimer: All the posts published herein are merely based on individual views, and they do not expressly or by implications represent those of BeerMoneyForum.com or its owner. It is hereby made clear that BeerMoneyForum.com does not endorse, support, adopt or vouch any views, programs and/or business opportunities posted herein. BeerMoneyForum.com also does not give and/or offer any investment advice to any members and/or it's readers. All members and readers are advised to independently consult their own consultants, lawyers and/or families before making any investment and/or business decisions. This forum is merely a place for general discussions. It is hereby agreed by all members and/or readers that BeerMoneyForum.com is in no way responsible and/or liable for any damages and/or losses suffered by anyone of you.
