Bitcoin Is The Way: For People, For Companies, For Countries.

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I am sure by now you have heard the news that El Salvador has adopted a law that makes Bitcoin a legal tender. It is super impressive how the leadership of this country is embracing Bitcoin. I can only say, "Finally, somebody gets it!".

Our own Hive legal mind, @apshamilton explains this phenomenon in details in his El Salvador & BTC - Deep Dive on Momentous Impacts post. Also read his follow up post titled Breaking News: El Salvador's BTC Bill passes by supermajority.

Only a couple of weeks ago I wrote about a story of country taking measures against Bitcoin and crypto and confiscating mining equipment in my Crypto Can Help Countries With Smaller Economies If They Take The Right Steps post. It was disappointing to see how some countries were failing to see an opportunity to lift up their economies and instead taking steps against such advancement in technology and financial improvements.

Now, El Salvador becoming a country first openly and legally to embrace Bitcoin is a great news. We have also seen news from other Latin American countries enthusiasm towards Bitcoin and potential future actions in favor of this technology as a financial solution.

I personally, have no doubt that Bitcoin is a solution for preservation of wealth and personal banking without any middleman. At the same time I am fond of Michael Saylor and company executives that see value in investing in Bitcoin. I didn't think adoption of Bitcoin in a country level would come this soon and openly. But I always thought it would be a great move for any country.

It seems though there will be troubles along the way for a country making Bitcoin a legal tender and making businesses accept Bitcoin. Since it is still a new technology, this process will take time. As we all know, a simple Bitcoin transaction takes longer than a credit card transactions. I hope great minds will be involved in making this work and utilize already available technologies that make such transactions as easy as credit card transactions.

I would definitely wouldn't want to see - 'we tried, but it didn't work' kind of situation. I hope they have thought it through and have capable experts in place to tackle any difficulties that may happen.

El Salvador becoming the first is a great news. But it shouldn't surprise us either. It is one of the few countries that has accepted USD as a legal tender as well. While we may argue about various fiat currencies, the USD has proven to be one of the most strong currencies for decades. Perhaps it is not as strong as Bitcoin when it comes to money, but among fiat currencies it has been a dominant currency in a global stage. El Salvador among few other countries have accepted USD as currencies a while back. That just show how this country is not afraid of taking bold steps to make its economy stronger.

Go El Salvador. It will be great to see this country to become one of the leading economies in the near future. Bitcoin is a right step forward.

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17 comments
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Yeah USD is strong in relative purchasing power versus all others who have to own US dollar debt to finance their countries mine included

The problem with relying on a USD as a non US country is YOU don’t get to divert the inflation

They also don’t get the full purchasing power of the dollar, since the money sent into the country takes all sorts of cuts and inflation so the people there get less of what they would be getting in purchasing power

Bitcoin can help them keep more of it, have excess to save and build! Not saying people will become savers overnight the fiat mindset is a tough one to break even for the middle class so it’s esepcially so for the poor who have all been on a rat race to get dollars for so long

I’m watching this closely I’d it’s a hit which I hope it will then more people will focus on Bitcoin support and Bitcoin only apps which is all we need!

These other coins can take their ball and go home LOl it’s over

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You are absolutely right. I hope Bitcoin will help lift up people as well. It will be an interesting to see how they move forward with implementing the tech.

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(Edited)

See my comment elsewhere on this thread re 3 phases of blockchain. This is just the first 10 minutes of an 90 minute game.
There is no one coin to rule them all, although BTC is undoubtedly very important and the foundation for all others.

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I know other coins will always exist what I'm saying is their impact is marginal. Maybe the developed world wants a place to gamble and have NFTs that have no value

But the rest of the world is craving sound money.

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(Edited)

I don't think so, Bitcoin is not the way for anybody. It is slow, costly, huge fees to transfer, the only good thing about it is the scarcity. The coin for everybody is HIVE, or something like it. The coin for everybody is a fast, ultra cheap or fea-less decentralized coin that offers plenty of real world use case scenarios. Sure I think BTC is here to stay, but not for everyone to actually use. BTC is a novelty, it's the biggest meme coin in the world. Bitcoin is a joke, and the joke is on everyone - haha rofl!

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I don't think bitcoin is a joke. But I do understand your point. It is too slow for regular transactions. That will definitely be challenge to implement it in daily shopping. I am sure there are ways around it as some bitcoin credit cards services have done.

I do agree some other coins can do a better job in fast transactions. But still Bitcoin is and will continue to be the leader in the space.

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(Edited)

I agree BTC will go high in price, that is the trend. I just don't think btc has to do anything more to do that, so most likely nothing's going to fundamentally change for it. Sure there will be future dips, crashes, and more spikes to ATH. I own bitcoin, I trade it all the time, I like to dis it a lot just to see what kind of reaction I get. That was a good one from you. Thanks!

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You are failing to understand that all this is being done on the BTC Lightning Network using apps like Strike and Wallet of Satoshi.

It is fast and fee-less, just like Hive.

However it involves a degree of centralisation. These Lightning wallets are all custodial, because it is very technically difficult to set up your own Lightning Node.

Believe me, I have tried and gave up and @brianoflondon has spent weeks getting his Lightning Nodes running for @podping.

There is a real opportunity for Hive in El Salvador which I'm planning a post about, but this law is a huge victory for BTC Lightning Network, not just Bitcoin itself.

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(Edited)

Yeah I've been using the lightning network since the beginning. I used to use it to send btc to bitgo. It was fast just like hive, and cheap. Just not sure why it never took off. Why do I still have to pay high fees to send btc around from exchange to exchange? Maybe because there is a flaw still, that pesky centralization issue maybe? hmm. Thanks for pointing that out, I don't even follow btc that much any more since I rarely use it for transactions these days.

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Lightning only really works for small amounts. 500k Sats is close to its limit according to @brianoflondon.
No good for transfers between exchanges.

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(Edited)

Yeah I was just thinking the same thing, otherwise block trades would have enabled it here by now. Crypto cro too, kucoin, binance. Maybe some of them have the option buried, but there is no awareness. I think the exchanges don't trust each other enough to use it to send from one to another, it's just for internal transactions, it hasn't' caught on yet, so I asssumed it was never going to.

Bitcoin just reminds me of an old baseball card, it appreciates while just sitting there collecting dust, the more you use it, or touch it, the less valuable it gets.

The miners need the fees, I don't seee that trend ending. How in the world are they going to store every single transaction in hard drives forever? It seems like the cost is going skyrocket one day, or network bloat again, or just a full traffic jam that never ends. In 50 years how long will it take to simply sync the btc nodes?? Seems impossible to me. Something's going to have to change eventually, btc's running out of time!!

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The main limitation is the channels: in order to receive 1 BTC you have to open a channel with 1 BTC and then someone else can put their BTC in the other and you'll receive it.

This inbound liquidity limitation is a crushing problem across the whole network.

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the biggest meme coin in the world

That is Dogecoin.

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(Edited)

This is the third phase (People, Companies, Countries) of the first blockchain paradigm shift:

  • BTC: a single trustless digital global currency
  • ETH: Anyone can create their own money, DeFi etc
  • HIVE: a decentralised internet / Web 3.0: the common decentralised back end for everything from content to games to a universal decentralised notification and signalling system (@podping).

The complete transformation of the world by public blockchain technology has a long way to run (as the second two phases are still at the people stage) but national adoption of BTC is a very important step.

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Makes sense to see smaller countries turning to bitcoin first, they have less to lose anyway. I doubt USA will officially acknowledge BTC as a currency anytime soon, but hopefully stuff like this helps somehow.

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It's great when someone 'steps up' and 'leads the way' with a bold move, which El Salvador seems to have done. This paves the way for others to follow suit much easier, whether with bitcoin or other crypto.

It'll be very interesting to see how this all develops and plays out. 🙏

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See... I am very sceptical on this.

First there was no need to go this far and create hype, all you need to do was be ok with merchats accepting BTC payments, that's all, why this legal tender hassels?

Most of the population 70% work in informal sector and they don't even have a good cell phone to own a BTC wallet, why will they care for BTC then?

That president fellow is currupt, sacked 5 judges who were investigating curruption charges on him...and a school of thought says international countries were alledging that he is currupt and maybe sactions were possible. This means well...

that country can't do transactions in USD dollars so maybe he made BTC legal tender.

BTC is digital gold, but it sucks as a payment currency even DOGE coin serves like a better payment currency, there is ripple, even LTC why BTC?

THis guy wants capitalists to invest in BTC and get money, no capital gains tax so you know they can find a way to avoid paying taxes using BTC...

BTC is still new and votatile and it can be dangerous as a national currency you know, especially one with poor people.

So I don't know...

Maybe it will help some people... maybe they will hold BTC and safegaurd their wealth and be happy. Maybe youth will find more jobs...but you see it will be capitalism, the poor who don't have good phone and internet connects won;t benifit and these politicians will get rich for sure, already currupt now its just appreciation for curruptio when having BTCs.

No...its all hype dear girl...simpily making news...that's all, over hyped stuff.

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