Is Bitcoin a solution for countries with lower economies.
Some analyst say cryptocurrency could be an alternative hard money
While another group feels that bitcoin cannot solve the fiat currency issues.
Can Countries give Bitcoin a Try!
Venezuela, a country agonized by the distressed financial and political condition, needs a good backing from any strong resource. Many people argue that it could be bitcoin.
As the centralized system is collapsing in countries like Turkey and Venezuela, the economy needs a boost from the decentralized structure.
Therefore, the need of the hour is to analyse whether Bitcoin could serve the purpose or no. However, some of the researchers and users feel that bitcoin is not a ‘case study’ for the countries with the lower economic condition.
Meltem Demirros says that bitcoin cannot be case study in Venezuela, Turkey and the Philippines as bitcoin cannot solve all the issues.
She further says that “the countries with the economic crisis, political turmoil, food insecurity, and other humanitarian issues are not ‘case studies’ for bitcoin.”
However, many people agreed with her perception by responding to the ground reality of the countries. However, the bitcoin supporters completely dismantled her claims and said that these countries should adopt bitcoin and it could stabilize the monetary system.
Why do people think Bitcoin cannot help distressed countries?
As in the case of Venezuela, the average earning of a common man is below $50 and hence, they probably cannot afford to spend it on bitcoin. With low educative information about bitcoin and fewer internet facilities, it very tough to adopt bitcoin.
On the other hand, the transaction fees of bitcoin could make the adoption still more troublesome in the countries with the scarcity of food and healthcare. However, bitcoin may be a solution for the long term, but the people need some relief at present.
Turkey allows trading with the exchanges that are registered with the government’s authorities. The exchanges are mostly for the people of the turkey itself and hence, the influence of the international market might be less compared to the other countries.
Collectively, the present economic situation in these countries needs correction, but if it is Bitcoin, its hard to say.