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What will happen if some country starts paying all salaries in bitcoins ?

Discussion in 'CryptoCurrency' started by onlinemarketer12, May 23, 2020.

  1. onlinemarketer12

    onlinemarketer12 Elite Member

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    What will happen if some country starts paying all salaries in bitcoin ?
     
  2. Compazz

    Compazz Jr. VIP Jr. VIP

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    I don't think any government is that stupid, for starters it will make
    it hard for people to pay taxes due to the volatility of cryptocurrency.
    the last I checked you're born to pay tax no government will joke with that. :)
     
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  3. Pavan Teja 1

    Pavan Teja 1 Senior Member

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    The bitcoin value will increase and the economy of the country will collapse
     
  4. onlinemarketer12

    onlinemarketer12 Elite Member

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    Why will the economy collapse. They can deduct tax beforehand only.
     
  5. ziko12345

    ziko12345 Elite Member

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    Not happening
     
  6. VSYNC

    VSYNC Power Member

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    - Bitcoin's value would increase substantially, but depending on the country (ie. Zimbabwe vs Germany), the impact would be greater or lesser.

    - A large number of businesses (see "majority") in that country would explore accepting Bitcoin payments, both offline and online.

    - The same would be replicated in related countries (ie. in the case of Germany, many EU countries would see a surge in adoption of Bitcoin payments).

    - Other countries would potentially consider following suit, or doing something similar. Again if it's Zimbabwe, then Australia isn't going to necessarily consider compulsory pay outs of wages/salaries in Bitcoin, but if it's the US then it obviously would.

    - Bitcoin would rapidly penetrate every corner of the social consciousness in that country (and others), with things like Bitcoin movies, TV series, songs, cartoons, clothing and merchandise, tattoos and jewellery all blowing up most likely.

    - There will be a large rush to cash out back to fiat currency, leading to a sharp drop, which would probably be re-bought heavily by larger investors who realise, in that country at least, that the fiat hegemony is taking it's first tangible step to transitioning towards a crypto hegemony (ie. transferring BTC to fiat is useless if everything is being sold in BTC).

    - The concern for volatility may subside if everything is priced in BTC. Volatility is a relative concept - ie. something has to be volatile in comparison to something else. If people can use BTC to buy everything, being volatile to USD (or other fiat currencies) is completely irrelevant.

    - Longterm HODLers will have a collective orgasm when the news of that is released... maybe the best one they're ever had.
     
    Last edited: May 23, 2020
  7. Pavan Teja 1

    Pavan Teja 1 Senior Member

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    Not just tax, anonymity of bitcoin will be a problem. Every Govt. wants to have control over the currency circulation. The bitcoin may float-in or out of the country without them knowing about it.

    Even if the countries start using cryptocurrency, they will start their own instead of using bitcoin, as it will help them estimate the money leaving their country to define current value.
     
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  8. TheVigilante

    TheVigilante Jr. VIP Jr. VIP

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    This is highly unlikely considering there are less amount of Bitcoins right?
     
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  9. VSYNC

    VSYNC Power Member

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    All of that's true, but can you see any way that a government could mitigate the problem with people having pseudo-anonymity, while actually being able to track the movements of "money" in a more efficient way?
     
  10. nakamura

    nakamura Elite Member

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    Not Bitcoin, but other forms of digital money. I am pretty much sure they already work on something like this. Once the paper money doesn't exist anymore we will also have a "digital currency"

    In the long run I believe there will be only ONE currency. This might happen after a very big happening, like a world war 3 or a destructive crash of the system
     
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  11. VSYNC

    VSYNC Power Member

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    If you imagine there are 21 million BTC.. but each one can be split into 100M units (satoshis)..

    So it can down-scale to 21,000,000 * 100,000,000 units all up

    This is the most likely outcome.

    One currency globally provides ultimate economic power for whoever manages the system. A fully digital currency is low cost but high traceability. A war or mass civil unrest would provide the needed catalyst for the transition.
     
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  12. TheVigilante

    TheVigilante Jr. VIP Jr. VIP

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    But still with that many splits not enough for the whole world right?
     
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  13. Viku

    Viku Jr. VIP Jr. VIP

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  14. HoNeYBiRD

    HoNeYBiRD Jr. VIP Jr. VIP

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    This is not a likely scenario.

    Apart from what has been already said, we still need cash. The only close to cashless society is Sweden and it's rather questionable that it's a good thing at all, because of system vulnerabilities (power outages, hacking, electronic attacks) and financial exclusion of the elderly, the impoverished and people with disabilites.
    There are still a lot of people, who don't even own a bank account and banks exist for quite some time now. Explain to these people that from tomorrow there's no cash, no good ol' domestic currency and they need to pay with some digital fairy dust, what they can obtain via digital platforms they don't know and/or have access to.
     
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  15. VSYNC

    VSYNC Power Member

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    I think it would be 21 quadrillion satoshis.. so 21 thousand trillion satoshis.

    That's roughly 2,333,333 units for every person on Earth right now if all of the wealth of the world was divided into satoshis alone.

    Considering that the richest 1% owns half of the wealth of the world, that would be:

    10.5 thousand trillion satoshis for 90,000 people

    For the rest of us, that would mean an average of 1,666,666 satoshis each.

    But 26% of the world's population roughly are under 15, so that would mean that we would have to share that number between all adults, which is 1,666,666 / 0.85 = 1,960,783

    If you compare that to the current fiat system, that's the equivalent by unit of 19,607.83 units (something like $19,607.83) each in order to be able to perform the same function as normal.

    The global medium wealth per adult is $7,087USD (2019), and so this unit capacity would be 3 times more than that if just taken on face value (ie. if everything in the world was bought, sold, traded and held as Bitcoin value).

    It could be possible, but I still think there would be extrenuating circumstances like an inflation in the global population over the coming years and the growth of wealth in typically poorer 3rd world countries that would mean that even if this was enough today, at some point not too far away having 21 quadrillion units to play with wouldn't be enough.

    Today we might, but that's rapidly changing. It's like the guy in 1990's that said that the internet could never replace libraries.. he couldn't see past the present paradigm to realise what the situation would be like only 20 years in the future.

    Now it's laughable to even think of using a library to source information unless you're a student, and even then, most of the time you're online in the physical library anyway.
     
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  16. damewood

    damewood Jr. VIP Jr. VIP

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    Unlike paper currency, bitcoin is limited, so this is not even possible.
     
  17. tb303

    tb303 Senior Member

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    What country has everyone on a salary? My income comes from customers and I pay tax at the end of the year.

    Never going to happen anyway theres a reason they have classed it as property when it comes to tax liabilities. Until that changes its the same as gold and who gets paid in gold these days.

    That said I have just been paid direct by the Uk gov and ive not touched any cash in two weeks, but these are not normal times.
     
  18. akdrei

    akdrei Newbie

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    lot people will starve to death, because they don't know how to pay with coins
     
  19. Cewgg

    Cewgg Regular Member

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    not happening, if some country decides to adopt digital currency they will come up with their own they have full control of
     
  20. TomTheCat

    TomTheCat Power Member

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    Is the same thing as working in U.S. and getting paid in Euros.