Economic crises are a threat to all citizens, regardless of where you’re from. In the past, people had very few options to escape inflation and bad policies, as the markets were mostly tight to national currencies. Luckily, it’s safe to say people have other options nowadays.
How can crypto help countries in crisis? Could someone survive inflation with crypto? Those are some of the questions this article will be answering.
How can Crypto help countries in crisis?
Crypto has been a very viable alternative for countries prone to hyperinflation, primarily because it acts as a gateway to other currencies. Once you convert your national currency to crypto, you can now turn your crypto to any digital or fiat asset.
In the case of Bitcoin, this cryptocurrency is rapidly growing and is compared (in terms of value) to gold. Its finite existence sets a very interesting supply/demand battle that, throughout the years, have skyrocketed Bitcoin’s price to higher levels.
From a long-term perspective, saving money on Bitcoin would increase the worth of your investments considerably, while fiat currencies tend to decrease it.
Benefits of Bitcoin
- Bitcoin transactions are a matter of minutes. No matter the amount, no matter the destination.
- Bank deposit fees can cost you a lot of money. When doing it in bitcoins, the cost is cents or even free in some cases.
- You can send bitcoins to any country in the world. Bitcoin, like the Internet or email, has no borders. This, with the guarantee of respecting the freedom of its users, makes Bitcoin the first global currency that really works.
- No government or central bank can control or interfere in the valuation of bitcoin, neither in its creation nor in its distribution. With Bitcoin, money is depoliticized, it is made from the people, thus eliminating the control that FIAT money exercises over the population.
- Your bitcoins are yours alone. The money belongs to you and cannot be intervened by anyone. With Bitcoin you can be your own bank.
Countries that have been helped by crypto
Recently countries like El Salvador and the Central African Republic adopted Bitcoin as a legal tender in their territories, which has shown how far crypto adoption can go.
Globally, many countries in Asia and South America have emerged thanks to cryptocurrencies. Countries like Argentina, Venezuela, Vietnam, Singapore, Peru and many more have recorded high volumes of crypto transactions.
Although this does not mean that they have legally adopted crypto, many users are definitely improving their economy with digital finance.