adoption: Bitcoin as Legal Tender in El Salvador - impact on the crypto world and future implications

UX Researcher and Designer

What impact could BTC as a legal tender have on the crypto market in the coming months?

Two days after El Salvador bomb news, both Paraguay and Mexico publicly stated that they were following the same path. Beyond the importance of adoption by the world's governments, it is the answer for those who have always been against bitcoin. Bitcoin will undoubtedly continue to rise since institutional money has not stopped entering and for more dips that we see throughout the remainder of the year, the fate of bitcoin will continue to be upward In the coming months, I predict that many more people will join, and not only in bitcoin, but it will be the entrance to the entire crypto-market where DeFi will also begin to take on a greater role. And if in the end, the environmental impact can become a justification for its non-use, then there is no need to worry because the 2030 Agenda is already within the plans of the crypto community.

A farm and a laboratory that utilize blockchain technology for genetic purposes.

What impact could BTC as a legal tender have on the crypto market in the coming months?

That is a great news for bitcoin and crypto industry in general. Crypto adoption officially have begun. The economy consists of supply and demand but behind the economy peoples are standing. And if government gives green light for some stuff it means a lot. It means that all categories of citizens belonging to certain social formations will gain access to bitcoin, will use it in everyday life, thereby expanding the possibilities of its adoption. If speaks about the impact on the price. I think it will rise through the time. Bitcoin is the type of assets that is so unique as gold or silver, has limited emission, transparency and the only one truly decentralized. I love bitcoin.

Blockchain academic & analyst.

What impact could BTC as a legal tender have on the crypto market in the coming months?

Satoshi Nakamoto, the pseudonymous creator of Bitcoin envisioned it as a globally accessible financial service. As is the case with most of the developing nations, 70-80% of the population do not have access to simple financial services let alone a bank account. Things most of the developed or Western World take for granted. For the developed nations, Bitcoin is mostly seen as a speculative asset and a means to diversify their investments, but for citizens of less developed nations, it is a means of exchange & a store of value. Citizens of nations hit hard by hyperinflation and run by rogue central bank governors and corrupt monetary policies, adopt Bitcoin because it is a clear way to store their wealth and escape the grasp of authoritarian rule. According to EL Salvador's Bitcoin legal tender official decree, there were several considerations that led to such a decision, three points caught my eye; Article III: Approx. 70% of El Salvador's population do not have access to traditional financial services Article IV: The state recognizes its obligation to facilitate financial inclusion for all citizens and fulfill their basic rights Article V: Choosing a digital currency which value is determined by free-market criteria. -------- The primary aim is to provide financial inclusion for all. Adopt a currency that is not controlled by anyone, but accessible to everyone. El Salvador & countless other nations use the USD as legal tender, but have all suffered from the US foreign policies & Bitcoin has finally provided a way out. I can think of many other nations who share the same issues and would benefit from such a move but I would not rush to assume that others will immediately follow as authoritarian rule and politics come into play and when it comes to money & power, the stakes are higher than ever. We are witnessing global shifts in power & central banks of China, the EU & USA are all in a race to launch their very own digital currencies for global financial control. Bitcoin is a decentralized, permission-less, borderless global financial system that offers people an accessible means of exchange & trusted store of value. China, US & EU are aware of its power & it is only a matter of time until they succumb to the fact that it is here to stay and there is nothing they can do about it to prevent other nations to adopt it as legal tender. The crypto market is at its very early days, with a market cap of a mere $1.5 Trillion. Every day more use case & applications are built on the same technology powering Bitcoin, Blockchain. Such news coming out of El Salvador only fuels Bitcoin's power and resilience against false narratives that claim Bitcoin & cryptocurrencies are a scam and will only drive more adoption.

Business Consultant.

What impact could BTC as a legal tender have on the crypto market in the coming months?

Longterm it will be remembered as a game changer for Bitcoin adoption. First country not only adopt bitcoin as legal tender but also as unit of account. What is more, until now, the US dollar was the official currency in El Salvador. That means that you may find products in shops & services priced not only in USD but in Bitcoin as well. This will draw attention of other countries to BTC and start wider adoption around the world.

Blockchain and Crypto Project Consulting

What impact could BTC as a legal tender have on the crypto market in the coming months?

Bitcoin, before August 2020, suffered from an appalling lack of a dependable price floor that could have triggered it's mass adoption much earlier. But the turning point came for it when Micheal Sailor of Microstrategy bought into it (https://www.microstrategy.com/en/bitcoin/bitcoin-for-corporations) Ever since its first transaction, and block, bitcoin was wholly in the hands of mostly price speculators who held it for a while and sold it the moment the first couple of dollars in profits was turned. These speculators were purely profiteers who didn't care about what a good strategy for Bitcoin's mass adoption should be, so, with their crave for quick profits denied the coin that all important build up of a price floor. Which was why we can see it record a crash of between 30% to 80% at times, and most businesses refusing to accept it as a medium of exchange. All that would soon become a thing of the past as we have started to see institutions like Microstrategy, other high net worth companies and individuals owning bitcoin. The concrete fortification of this price floor would come when countries, like El Salvador just did, begin to adopt it as a legal tender. That means bitcoin will seep through the nation's commercial and economic fiber triggering it's smooth and unprecedented mass usage. So, welcome to bitcoin mass adoption. But remember a whole lot of it is still in the hands of speculative retail, so, expect it's price to split rise and fall in the short term. This may very well be slow, but make no mistake about it, a progressively higher and stronger floor is been built for Bitcoin henceforth.

Strategic Blockchain Consultant

What impact could BTC as a legal tender have on the crypto market in the coming months?

Since low income countries suffered because of their weak currencies and are also vulnerable to market changes causing inflation, There will be more to follow. El Salvador has showed the way. Bitcoin will be adopted in many more countries. The impact is already reflecting in the market. Cryptocurrencies with utility adoption in general will become a much safer investment in the near future, with less volatility and high demand.

Compliance Engineer

What impact could BTC as a legal tender have on the crypto market in the coming months?

The adoption of bitcoin in El Salvador more importantly recognition as legal tender is that one small step the world needs to expedite global adoption and acceptance as legal tender. Having studied the market and been a part of crypto for the better part of seven years and having lived off of crypto for five years without the need for a dollar I truly understand the convenience of what is now taking place in El Salvador. Honestly speaking however what its impact might have on the market will be nothing more than a blip. May be a five or 10% rise in the price of bitcoin and the alts to follow. But that's nothing more than normal fluctuation. El Salvador is a small country when compared to the global population. Any true impacts you find on the market with relation to bitcoin is most certainly the result of the whales pumping or dumping whatever suits their needs. I feel that El Salvador is just the first in many poor nations or nations with corruption or poor economies that will adapt and recognize bitcoin as legal tender. Any nation or government local or national to deny bitcoin as legal tender at this stage is only killing themselves. Whether you ban bitcoin or love bitcoin, It will remain as it is an outstanding store of value a means to transfer wealth from one to another in the God-given right to do so on your own accord and on your own terms and conditions. Congratulations to El Salvador for being a step ahead of the rest. And if you don't think digital currency's are going to be a mainStay in our lives moving forward then you're only kidding yourself.

Developer

What impact could BTC as a legal tender have on the crypto market in the coming months?

The adoption of bitcoin as legal tender in El Salvador will pave way for crypto currency usage in other countries if it doesn't improve fraudulent activities using bitcoin in the country, then other countries would have a positive view of it and adopt it as a legal tender in their countries thereby increasing the price of crypto currency in coming months. With this new development, more companies and firms will as well follow suit in the acceptance of crypto currency as means of payment which will also create a bullish market in the the crypto market in coming months.

Technologist/Education Consultant

What impact could BTC as a legal tender have on the crypto market in the coming months?

A very positive development for cryptocurrency. I see more countries towing a similar line in the coming months. With this exciting news from El Salvador, I see bitcoin and crypto at large inching closer and closer to mass adoption.

Student

What impact could BTC as a legal tender have on the crypto market in the coming months?

The adoption of bitcoin as a legal tender by the people of El Salvador is going to tremendously uprise the crypto market in the coming months. This is because most of the citizens there were even not having any prior knowledge on crypto, but now that it has been adopted, there will surely be an education of the populace on crypto and this will enlighten them on what crypto is all about, making them start showing interest and start investing and trading in crypto. Also, aside the fact that crypto is an investment platform, it is also used for purchasing goods and services, so a lot of people will sign up and deposit into their wallet and use it for payments especially in this COVID-19 era where everyone is afraid to come in contact with physical currency since the disease is believed to be spreading through that medium. By considering these factors , crypto market is expected to surge upwards in the months ahead.

This is not a financial advice. Please do your own research and consider the risks of trading cryptocurrencies.