It's well over a year since the country of El Salvador adopted Bitcoin as legal tender and in the midst of all the financial turmoil in the world, I'm starting to hear some folks discussing the economy and talking about going back to the gold standard, central banks switch to CBDCs from dirty fiat and so on.
As I have said in many of my previous posts, I consider CBDCs to be total crap. These are basically the rat poison Warren Buffet was trying to make Bitcoin look like, a while back.
You don't get much news regarding El Salvador and its Bitcoin relationship lately. There were talks of some volcanic energy mining facility to be built there, Bitcoin bonds, a Bitcoin city, and so on, but all of these were popping out of nowhere mostly during the bull market when almost every idiot made money, except me of course :).
Nayib Bukele however was mocking the Bank of England the other day for the outstanding performance the British Pound has recorded over the past few days. It's somehow a response to the concern the Bank of England had just about a year ago when El Salvador made Bitcoin legal tender.
Now I don't want to be the goat of the landscape but El Salvador becoming a Bitcoin maxi hasn't probably solved many problems over there. 40% of the individuals over there are living in poverty and whoever held the BTC they got for their services since it was introduced as a currency is poorer than it was a few months or a year ago.
If one is a HODLer then that's no problem at all, but if you had some sats as savings instead of cash and you now need to use these savings, then you're in deep shit right now cuz Bitcoin temporarily devalued steeper than cash. The problem of El Salvador IMO was that it rushed towards making Bitcoin legal tender instead of educating the people on adopting crypto as a whole.
How many El Salvadorans are on Hive right now? I personally know none... I know people from America, Spain, Greece, Venezuela, Nigeria, and many other countries who are active on Hive but no El Salvadoran at all.
If these people would have been thought about how to earn crypto and leverage their crypto savings rather than just use BTC for daily transactions, El Salvador would have been in a way better position right now...
They rushed things for a bit and that IMO is their main mistake in dealing with Bitcoin. Don't get me wrong, I applaud their decision and boldness for showing the middle finger to IMF with what they did, but they should have taken a different approach. It's not that lucrative to be a Bitcoin maxi...
In some regards, alts do better than Bitcoin. What do you think?
Thanks for your attention,
Adrian
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Everyone should be on Hive right now.
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True
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I think El Salvador has shown the way what is possible with Bitcoin. Even if 40% of the population is poor, they have a choice.
True. They should have "diversified" imo
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😏 Bad timing of El Salvador. If they had made that move a year earlier they would be still looking good. BTC was around 10k back then. Hope they Hodl until we are through the bear market, then Phoenix has a chance to rise.
👍🏻 And you are right, BTC only is maybe not the best investment strategy within Crypto.
I'd say they will HODL. They basically have no chance at this point.
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Think so too. 👍🏻
You're not an idiot :)
The state of El Salvador is still buying the dip so they are doing quite good, I think.
As for education ... It's way easier to try to have short terms benefits (paying in BTC) than the long-term solution (education). Besides, how many (poor) people have the patience to try to learn about anything, crypto included?
@tipu curate
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Oh, believe me, I am an idiot... I don't need anyone to tell me that...
If you are just using BTC for everyday transactions and remittances (as most El Salvadorans are) then the day to day price doesn't matter. They are spending the BTC soon after receiving it, not saving it.
I bet most of them are doing that, but wouldn't be good if they would have been educated more about crypto and not just somehow get "forcefully convinced" that BTC is good for them and that every business should accept it.
Like you said earlier, Nayib didn't educate his citizens about Bitcoin and people trusted it less too. According to research shows it's citizens where not comfortable with the president decision to make Bitcoin legal tender and he went ahead to channel all the country's resource to Bitcoin form. That majorly caused the drain but if crypto education is carried out before adoption, there would be more good than harm. Thanks for sharing
Just hold.
It is all matter of perspective. Hanging onto Bitcoin during bear market makes anyone look like an idiot only to make him look like genius when the next bull run comes.
It could have been worse for people of El Salvador, though. Imagine what could have happened if Bukele were Ethereum instead of Bitcoin maximalist.
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He shouldn't be maximalist at all.