It Came Out Of Nowhere But It's Here To Stay
Who would have thought a small country from Central America with a bit over 6 million inhabitants will adopt Bitcoin as a currency? I bet no chart and analyst has forecasted that. It’s Official: El Salvador’s Legislature Votes to Adopt Bitcoin as Legal Tender.
With 64 out 82 votes, the law proposed by Nayib Bukele to adopt Bitcoin has been passed, all he needs now is to sign it. Will he do that?... I guess so, and I also believe that many other countries will follow suit. For the moment Paraguay comes to my mind that seems to be stepping on the same path and there are a bunch of others as well that I read about on twitter recently.
But sir, Bitcoin is volatile, how are gonna merchants handle volatility?
Quite simple...
“If there’s an ice cream parlor, he doesn’t really want to take the risk, he has to accept bitcoin because it’s a mandated currency but he doesn’t want to take the risk of convertibility, so he wants dollars deposited in his banking account, when he sells the ice cream, he can ask the government to exchange his bitcoin to dollars. Of course he can do that in the markets also but he can ask the government to do it immediately.”
-Nayib Bukele, president of El Salvador
The trust that will be created at the Development Bank of El Salvador will hold $150 million to deal with volatility and merchants that can't afford it(the volatility) and need cash more than Bitcoin. I believe that in a decade from now that fund won't even exist, but for now as the new payment method is greased in they have a buffer for that.
According to Binance seems that the president of El Salvador will encourage mining as well. Now, I first hard of this president of El Salvador just a couple of days ago, but this man has accomplished so far what most of the planet hasn't. Bitcoin as a legal tender...
Wasn't designed as such by the inventor himself, Satoshi Nakamoto? I guess it was. As funny and odd it may seem, although Bitcoin is gradually turning into a store value, its purpose was somehow right from the beginning to be used for purchasing ice cream. A question that might arise right now is: what about fees and transaction speeds? Well, I guess that's when the lightning network kicks in.
Even if having Bitcoin as a currency won't be much of a success in El Salvador there are always crypto alternatives at hand. At least this country has made the step forward in adopting crypto as a legal tender in their country. Some others will probably follow. I doubt China will do that as it's against its communist totalitarian dogma, but some European ones will for sure follow suit.
I don't think the US will rush to follow El Salvador's example, but who knows, maybe they will at least change perspectives. Bitcoin came out of nowhere, but it's here to stay. I'm 100% sure about that. Considering the social crisis that humanity is currently going through there are definitely gonna be more and more individuals moving their savings and earnings into crypto.
Crypto is the ultimate panacea that we've had so far for a corruptly designed global monetary system. At this point the price doesn't even matter anymore and there's no doubt that it's here to stay.
Thanks for attention,
Adrian
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I can't express enough, how much joy is in my heart while I'm reading all these news.
Been waiting for this so long...almost a decade.
Well done, El Salvador !
I get you. If I'm happy about it and only close to four years in the game, what can I say about you. I guess it's somehow a fulfillment knowing that you're one of the few believing in it and also seeing it actually happening.
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Yep. It all keeps adding to the pile. The tentacles of crypto are spreading a lot further. There is no turning back now. Add in a couple more countries and we will see how things radically shift on a global stage.
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Am I missing something? How is this newsworthy? Bitcoin already is a worldwide digital currency and is already used to buy millions of things in every country around the world...
Naming bitcoin though just seems like a big publicity stunt honestly. It's the slowest and one of the heaviest fee laden cryptos it can't be used for everyday transactions.
They can always change that and use other crypto that suits the purpose better. What's important is the example that they show to the world. That's why it's a news.
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Good stuff, I've just been doing this since 2013 that it feels like ehhh It's always been an active currency lol but yeah that makes sense and starts to legitimize crypto even more. Imagine the boom crypto will see once more countries start following.
You're a true OG if in crypto since 2013.
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It does seem you are missing something here. True, the utility aspect of this is not the important factor. What it does is it sets up another country pitted against any that are against bitcoin and crypto. This brings it to the forefront. Do you think the 6 million in El Salvador were aware of Bitcoin before this announcement. Once it goes into effect, they all will know about it.
The key is to have other countries follow. As more side with El Salvador, they will help to negate whatever moves some of the bigger ones have in mind.
It is vital to look at this from a geopolitical point of view.
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Good news good news!!
Bravo
Thks Adrian!
Thank you to for appreciating the post.
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Huge
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When Greece?
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Actually they are using it in the same time with the dollar. But still, is good for them, as the dollar with have bigger inflation.
Definitely. I doubt any county will rely entirely on crypto in the near future.
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Paraguay seems to be next. Many will follow in the next few year, I believe.
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True
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Get the total number to about 50 million in terms of the populous of the countries who recognize Bitcoin as legal tender and you will see a different environment.
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https://leofinance.io/@apshamilton/el-salvador-and-btc-deep-dive-on-momentous-impacts
I think if you read this it explains why it is required. Bitcoin becomes a legal currency like the USD and EURO because of this.
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No the US wont rush to follow suit. What is interesting is El Salvador is one of the countries that does use the USD as its main currency.
It is all a step forward. If some others follow suit, that will only solidify things a bit more. This is a process and we are starting to see it unfold.
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I think this is already having an effect. As I write now (June 9th 15:29 UTC) Bitcoin has made 16 pct daily jump (with going almost 2000 US$ upward in last 15 minutes or so). It seems that El Salvador story will finally end FUD and bear market talk, at least for a day or two.
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It's the mainstream news that are impacting the price.
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So far so good.
As long as Bukele doesn't have freak accident with an AR-1 armed US CH-5 Drone, the Crypto world will look rosy again in no time.
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Even if that does happen he's an example.
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Like when the late Libyan President Gaddafi floated the idea of a gold Dinar and the late Iraqi President Saddam Hussein wanted to sell Oil in other than USD that kind of example?
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Hopefully not.
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Should we all move to El Salvador
I don't know much about it. I am thinking once in a while to leave this country inhabited by idiots.
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lol
Its the first I heard of them supporting mining as well but I think it makes sense. You might get more BTC circulating inside your country.
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