Ask Experty: Bitcoin as Legal Tender in El Salvador - impact on the crypto world and future implications
Today, El Salvador has become the first country to adopt bitcoin as legal tender. The price of bitcoin was up 5% shortly after the vote. "The market will now be focused on adoption through El Salvador and whether other nations follow," said Richard Galvin (Digital Asset Capital Management). "This could be a key catalyst for bitcoin over the next two to three years." El Salvador will, according to the law, "promote the necessary training and mechanisms so that the population can access bitcoin transactions”. What impact could it 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.
In April 2017, when Japan enacted a law to provide legitimacy to digital currencies, bitcoin from the sub 2k level went on to reach 20K by Jan of 2018. With a GDP of 25 billion USD, El Salvador is nowhere near Japan with a GDP of 5 trillion USD, however with a law of making Bitcoin a legal tender, it has certainly caught the world's attention. But it cannot be argued that other countries to follow soon. To begin with, since 2001 El Salvador never had an independent monetary policy or a currency of its own and is using USD as its legal tender. So merely adding another currency to its list of legal tenders was much easier. This may also pave way for the countries already using pegged currencies to move towards Bitcoin or stable coins such as USDC or USDT. But for the bigger economies shifting to Bitcoin means losing their control over monetary policy aka printing currencies. So they will be more hesitant and resistant to adopt decentralized cryptocurrencies. That's the reason why countries like Venezuela and Iran even after US sanctions have not started using Bitcoin in a big way though they had tried to create their own cryptocurrencies. When more countries especially in Latin America showing eagerness, the focus will also shift towards the security of the bitcoin network with the recent rumor of the FBI hacking the network to retrieve the ransom paid by the Colonial Pipeline may act as a damper. So El Salvador can become a case study on how to make citizens adopt cryptocurrencies and impart cybersecurity knowledge if it succeeds in its mission. On the Bitcoin price front , the news is definitely bullish. Now the Bitcoin will have more acceptance and more banks will be ready to deal with it. We can expect to be traded in currency markets openly. Also, the El Salvadoran move could make it very difficult for other countries to ban Bitcoin as no country has ever banned legal tender of another currency. Definitely, Bitcoin along with stable coins will be in demand near future. Hope for the moon. ( Salvadorans can enjoy the moon without worrying about the capital gains tax)
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.
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.
I like it. The plan announced by President Nayib Bukele would make the small Central American nation the first in the world to adopt the digital currency, Bitcoin, as legal tender alongside the dollar. It would be a unique and bold step, the first by a sovereign country, and that may well be part of the attraction for Mr Bukele, a young, media-savvy and very popular leader who worries Washington over his increasingly autocratic tendencies. There are still many questions over how the digital currency would become the country's legal tender - a major overhaul of El Salvador's financial infrastructure would be needed with Bitcoin at its heart. But, in essence, it appears that is what Mr Bukele is proposing. Much of El Salvador's developing economy is based on remittances from abroad and the move to a digital currency may allow family members to avoid the costly fees involved in sending money home each month. Either way, it is a move which is likely to bolster Bitcoin's image as the "currency of the future" and President Bukele's standing among his supporters as an innovator.
Making Bitcoin a legal tender in El Salvador will surely boost the legitimacy and international acceptance of the currency for all forms of transactions.
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.
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.
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.
Bitcoin can help boost the economy in different countries. Blockchain technology is a technological innovation that is constantly evolving to try to overcome the problem of centralization. Any juicy News in this month after bad Campaign Elon Musk and China FUD. First, Twitter CEO Jack Dorsey will work with financial company Square Inc to make Bitcoin mining environmentally friendly, because many have criticized Bitcoin mining as not being environmentally friendly. Second, the government of El Salvador, as stated by the President of El Salvador Nayib Bukele at the conference, will make Bitcoin a legal currency. This is the first time a country will use Bitcoin as a legal tender. Interestingly, the currency of El Salvador so far is the US dollar. Developing country problems such as low digital financial inclusion, foreign investment problems and high inflation problems will be well resolved by Bitcoin adopting blockchain technology. No less unique is the plan that the BitMEX platform will partner with a space robot company to actually put Bitcoin on the moon, according to the Bitcoin jargon "to the moon" which means to fly high to the moon. With some good news above, all of these things will continue to grow and increase the demand for Bitcoin. The falling Bitcoin price is a good opportunity to take advantage of the opportunity to buy Bitcoin at a cheaper price than a few months ago. The existing Bitcoin innovation and the willingness of the Government of El Salvador to legalize bitcoin, will make Bitcoin have a higher demand so that Bitcoin has the potential to rise back to a higher level in the future.
A small step for Bitcoin (the cryptocurrency), a giant leap for humanity! The system of the "modern nation-state" started with the Treaty of Westphalia (1648 AD); It's taken them 373 years (From the year 1648 to the present year 2021) to begin to empower their (poor) citizens. As an accountant, I can confidently tell you that "state-issued money" is the underlying basis for every relationship between the citizens of a state and with the state itself. And as a lawyer, every day I see this in the Courts, that every lawsuit is settled in "state-issued money". So, the impact of the present event of "Bitcoin becoming Legal tender (state-issued money) in El Salvador" on the crypto world and our future is " the change in the basis of the language of Power (Law) and the language of Business (Accounting), which was Standards set by the few (Politics) now to Standards set by many (Software Code)". I look forward to this future...
This move could mark the beginning of an open battle between global currencies. The US Dollar dominance is being attacked on 2 fronts, first is the chines CBDC and second crypto currencies, especially Bitcoin. In my opinion this fight is already going behind closed doors, now it is an open and viewable. The outcome depends on whether and when more countries rapidly join El Salvador. The IMF will likely try to intervene for the US and the more countries participate the harder the intervention. If these smaller countries plagued by currency problems accept BTC as store of value, the ripple effect could be huge. Basically BTC value is based on trust and mining so accepting BTC as payment is like saying we trust it at least as much as the US Dollar. Longer down the road this could result in many more and larger countries switching to El Salvador’s approach.
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.
Short term it will not have much impact but long term this could be the first big domino that falls. Although Bitcoin still is very volatile the chance offered to the people of El Salvador is hopefully the first of many.
Countries without fixed foreign exchange rates can partially control how much of their currency circulates by adjusting the discount rate, changing reserve requirements, or engaging in open-market operations. With these options, a central bank can potentially impact a currency’s exchange rate. El Salvador has become the first country to adopt bitcoin as legal tender. Impact for crypto world : This Will increase price BTC and Will High again
I think it will be very positive for the crypto industry. I believe it will futher encourage other nations to adopt crypto for their payments. Especially hyper inflated economies will really benefit from it. For example in Zimbabwe, due to hyperinflation they use US Dollars and since it often comes as 100 dollar bills due to international trade, people give those bills to kiosks and those money go in to their account which is used to pay with sms messages. I think it can be implemented with crypto.
very good and really appreciate what El Salvador has done, I think this is the beginning of the rise of crypto currency because there are countries that dare to admit it and the next impact is that there will be other countries that follow I'm sure that
It won't make any difference, because btc price is always unstable. The correct question is...can the El Salvador government stay stable by holding btc. If they fail then the world will lose hope on decentralised crypto adaptation.
In case other countries following El Savador, it would seem new pump time for Bitcoin for sure. Other example of Bitcoin massive adoption is how it helped countries against financial crisis or financial fighting as we saw with Venezuela's mining plan. As USA tried to crash their economical system, Venezuela's official FIAT was losing value with inflation under any control... By making official Bitcoin mining plan, Venezuela get ability to get money, and coins they get increased. They also created their official crypto airdropped to Venezuelians. As this isn't FIAT money, They avoid USA's abililty to crash it that finally really sound as protection agains financial system that is not fair and free market.... I'm sure lots of institution and countries, all of these which might be afraid about strongest ones would use Bitcoin and crypto's system to get freedom on their economical system. Of course, it would also increase value with new pump season !
While this is good for crypto going forward, I think the impact of this news will be short term and minimal, but off course, the long term future of Btc & altcoins is only in the upward, I don't believe this can be stopped by government or any regulations, the current drawbacks won't last long and new all time high is around the corner. I also expect few other countries to follow the path of El Salvador in the coming months and years. The market is certainly bullish. What a terrific end to the year it will be.
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.
I don't feel bitcoin should be used as legal tender while it's Proof of Work, older crypto networks using POW are killing our Energy usage drastically. So till it changes its algorithm type its going to make the issue worse if countries start adopting Bitcoin as legal tender. Proof of Stake crypto networks with smart contract functionality would be a much better choice to use as legal tender. So that's how I feel in this, also I feel its a bad decision to follow El Salvador adoption.
El Salvador's decision to legalize Bitcoin is a very extraordinary step. This move will be the power and potential of Bitcoin for everyday use on an open network that benefits individuals, businesses, and public sector services. Of course, we hope other countries will also follow this step, especially big countries like China, America, and others. And this will also make everyone aware that Bitcoin has enormous potential in the future, because the supply of Bitcoin is very limited, and it is also very easy to use.
It will not have too many impact on crypto market. Maybe if it was larger country then it would have a big impact on cryptocurrency market. But it's a small country with only 6 millions of people living there.
Japan got credit for this in 2016, though it wasn't technically true (1). It was a boon to the industry and is now part of the ecosystem. This will open doors for El Salvador and provide a hedge against inflation that is readily accessible to all people in Latin America. (1) https://www.google.com/amp/s/mobile.reuters.com/article/amp/idUKL3N1OD35L
The cryptocurrency market provides a long-term opportunity in the face of the current difficult economic conditions; especially in countries with high inflation rates.
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.
El Salvador accepting bitcoin is great news. Currently, there is quite a lot of unfavorable news, making investors confused. But good news like this will make the crypto community feel safe to invest
Fluctuations of 5% cannot be subject of reason in the crypto sphere. as for the recent news considering El Salvador, I believe this is the first move of many to come. first BTC will be adopted by large countries as mean of wealth transfer (recent comment of Senator Lummis) then eventually BTC will be pegged with some kind of a global point/wealth index for international trade. what makes me think this way is a simple calculation product of power consumption ,evaluation ,fees that all together will eventually force BTC to be used only for large transactions. the paradox will be a good layer x solution on BTC that will make Bitcoin money but that's only wishfully thinking as for now.
This will definitely be a key catalyst not only to bitcoin but for all other cryptos. This is because global investors are beginning to heavily eye the cryptocurrency space for sometime now and by letting large amount of people to have access to transact bitcoin will definitely arise to bulk purchases thereby leading to bull runs which will definitely be a plus to some if not all cryptos in the crypto market.
bitcoin’s fixed, long-term monetary policy, which cannot be changed except by a real majority of network participants, may offer an appealing alternative to Fiat currencies.
Bitcoin adopted by El Salvador - A deeper look at the impact on the crypto world. Written by Travis Capps, June 06, 2021 Today, El Salvador has become the first country to adopt bitcoin as legal tender. The price of bitcoin was up 5% shortly after the vote. "The market will now be focused on adoption through El Salvador and whether other nations follow," said Richard Galvin (Digital Asset Capital Management). "This could be a key catalyst for bitcoin over the next two to three years." El Salvador will, according to the law, "promote the necessary training and mechanisms so that the population can access bitcoin transactions”. Lets take a look at the impact this could have on the crypto market, the price of Bitcoin, the citizens, and the economy of El Salvador in the coming months. First, the crypto market: As Bitcoin finally becomes put to use as the nation's main currency, we may see an increase in how many people view bitcoin as a currency globally, as opposed to just an investment. If it does, we could see the price of Bitcoin stabilize and possibly increase. Second, the citizens: Since every citizen now has access to bitcoin, they will be able to have a more direct path between fiat currency and cryptocurrency. This could help put financial stability in the hands of everyday citizens, essentially allowing them to invest without even being aware that they are doing so. Finally, the economy of El Salvador: As I stated before, it is likely that cryptocurrencies will have a stabilizing and uplifting effect on the economy. More money in circulation should help stabilize the economy a bit more and allow for a slow but effective climb out of poverty for many citizens. Perhaps one day we will live in an age where cryptocurrency (like bitcoin) is treated as a commodity instead of fiat currency. This would make things like eliminating taxes a bit easier, and entire economies more reliable. The people of El Salvador have a chance to change the world as we know it and fulfill what some may call a prophetic overhaul of the imperialistic and rampantly fraudulent banking and reserve systems that have kept entire nations at their knees for far too long.
El Salvador is amazing. In a digital age like today, the exchange of cryptocurrencies is an inevitable need. El Salvador pioneering the exchange of Btc with commercial institutions is a spectacular step forward for the cryptocurrency sector. I always support this. Wish success
Making bitcoin a legal tender I'm el Salvador just shows how far cryptocurrencies have come. I in my opinion think it's a huge huge step in the adoption process. I expect the market to recover losses at a gradual pace. We should also be on the look out for more countries adopting bitcoin, particularly in the south of the Americas for the time being.
That is great news and soon many will be convinced that this is the right move for the economy of El Salvador. Many experts could have predicted success for the state economy that legalizes cryptocurrencies. El Salvador has done that and there will be many examples soon. I am just considering to take an office in El Salvador while the prices are still affordable.
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 can be a very positive and impactful milestone for the crypto community and financial infrastructure. The crypto Community as well as the established financial institution of various Nations should keep an eye on the progress and how this is being adapted and how well it take roof because this could be the start of something really huge for crypto globally. El Salvador can be a role model for the entire world to realize the power and the impact of cryptocurrency.
Bitcoin will not be used in the real world, as long as the price is still volatile. But with newer technology, this may go wrong. One way to make the price of bitcoin go up is to recruit new users or introduce bitcoin to new people. If you don't, the price of bitcoin will continue to fall
Interms on Crypto markets it is a big positive impact el salvorans investors maybe investing bitcoin but the negative side is, they used bitcoin for remittances, what about the volatility of bitcoin its just about a second the price of bitcoin flactuated. Remittance savings is a good potential but El salvador government dealing with a volatile currency that can crash thier economy.
It's one small step for Bitcoin, one giant leap for crypto world! The implications will be huge, not at the short term, because El Salvador is a small country, but can be used as an example for others the way to go for the future.
In July 2021 Bitcoin may heavily boost its price. We assume as high predictable a mass adoption of this cryptocurrency next months. We expect on July 2021 a Bitcoin rise with a strong capitalization and consequently a concrete value per coin increase.
wow Good news 👍 that El Salvador has become the first country to adopt bitcoin as legal tender. I'm sure this will have an impact not only for bitcoin but for the crypto world in general. This will be a consideration to other countries' governments that bitcoin can be a viable means of payment.
This new law change is a remarkable accomplishment and a game changer. Any businesses can accept Bitcoin as legal tender for goods or services in El Savador. Crypto market already reacted positively on this news. In upcoming months, impact will be more because other countries will gonna follow the same step for sure which bring financial innovation and economic development.
I strongly believe that this will result in greater stabilization of the bitcoin price in the very short run and a upward momentum in the long run. The reason is that the adoption of BTC as a legal tender in El Salvador increases its demand. Many people in that country will adopt its use. Also, people in neighboring will use BTC to buy goods and services in El Salvador. This increases its demand, thereby its value. Secondly, its most likely that soon other countries will follow the footstep of El Salvador, thereby increasing its value. However, if the scalability challenges BTC is facing should be addressed in order to keep transaction fee low. The other reason that will push the price of BTC higher is anticipation and expectation. In terms of economics, expectation has a greater influence on the short term price movement, rather than the reality of the ground. As of now, many people may acquire BTC in anticipation that their countries may follow what El Salvador has done. The upward momentum of price of BTC however, depends on other factors. A single factor cannot guarantee its price direction. The environmental argument has weighed down heavily on the price of BTC. Unless the environmental concerns are addressed, the price of BTC is most likely to remain depressed for a longer time. Another determinant of the price movement of BTC is the adoption of its major competitors namely ETH,ADA, BNB and Tether (USDT), as legal tender in other countries. In conclusion, at the moment, there is no certainty about the direction of the price of BTC. If environmentalists and governments act on it as a result of high energy consumption, the BTC may take time to recover. But the most likely result is stabilization of its price before an upward momentum follows.
Personally, I don't think that El Salvador impact will be huge, for some small countries yes, maybe some of them will follow path of legalization. But as for big countries this impact is almost equal zero. Economy of El Salvador its not strong enough (San Salvador - median salary 390$ usd/m, but rent per month outside city center = 350$ usd/m for 1 bedroom apartment), so I don't think that amount of btc usage in country will be high. Also El Salvador propose to give citizenship to all who invest at least 3 BTC to national economy, so they just trying to get more money to economy and to entice crypto traders/hodlers move to El Salvador and to passive "invest" more money in economy. If we have a look at Interactive Brokers CEO Thomas Peterffy speech at Piper Sandler Global Exchange & FinTech conference (He told that IB will provide BTC futures trading to its customers) it will have huger impact and more influence in "real" finance world. They have around 130 billions USD of clients capital and I think many people will at least try to trade BTC futures.
As an expert in this field, we can say the crypto world had reasons to be expecting the unexpected; which is, a change in the legal view of governments about crypto. Thankfully, the El Salvadorian government took the lead by setting judicial precedence for crypto adoption. Based on these latest developments, it would not be out of place if we see: 1. Removal or lowering of restrictions on buying cryptocurrencies by governments of other countries. 2. New government policies drafted towards the adoption of crypto or digital currencies. These changes could occur quickly in the coming months and overall it would more likely impact the market positively by boosting the confidence of investors, especially institutional investors in these countries. Hopefully, this would be a beautiful ride to watch as the days go by.
In my opinion, we will see other countries take El Salvador's step before the end of 2021, and as for the movement of the cryptocurrency market, El Salvador's decision was not largely positive to the market's movement, and the coming months, in my opinion, will witness more stagnation and market stability and slight movements until the last months of The year that often witnesses a positive movement in the cryptocurrency market.
even though the price of Bitcoin is currently falling and people are more interested in altcoins, Bitcoin is still the most popular crypto asset and has the largest marketcap. The existence of innovations around Bitcoin is projected to encourage the development of these crypto assets. “The existing Bitcoin innovation will make Bitcoin have a higher demand so that it has the potential for bitcoin to rise again to a higher level in the future
I think, very soon, cryptocurrency will replace fiat money. This is not a very near future, but, it will happen soon. The main crypto "tank" (bitcoin) is very strong!)
The future of the Crypto`s in the markets depends on multiple factors but does not stop being promising its scope in short, medium and long term. I believe that in the coming months these changes will be productive in all the economies and markets that this project adopted. We know that in many cases it has become an almost unstable system, by its tall and low, but this is necessary, and even could be attriened for many people, governments, companies and institutions that seeing the ability to monetize their finances and economies They have drowned to use them. Many things have to be corrected, especially the security, but when this system is safer than the same banks no one hazard in appended. The factors that prevent the complete performance of their functions are almost the same ones that influence a globalized economy, imagine the great contribution that could give a society that suffers by poverty or hunger? In culture or in any professional area? The positive affectations you could have in the psychosocial area? You have to see beyond what really is the future of the Crypto`s in the markets because its reach goes further than everything one can think.
I think it's another step in the right direction El Salvador gets to make history being the first country to adopt it as legal tender and I think other countries might follow in the future which will surely drive prices higher an higher
Hopefully soon other country also recognize bitcoin as a legal currency. It can make bitcoin pump up. As El Salvador sees the move as a way of encouraging foreign investment in El Salvador, saying at the time that if just 1% of the world's Bitcoin were to be invested in the country, "that would increase our GDP by 25%."
Massive, because it's about an advise on the economy behind bitcoin.One thing is the money means open exchange ,implementing lighting network.But change a whole country in a bitcoin economy is different. The affect out this and the work we do there will at least lead the country to become as rich as Monaco. This operation will attract a lot of capital to El Salvador but the president's reputation is not the best and the fact he is very young and supports bitcoin doesn't automatically mean there are positive intentions. A huge turnover for sure, El Salvador 🇸🇻 adoption of bitcoin as a legal tender is a big win for bitcoin on its own and also this will play a huge role on the crypto market.
Bitcoin has been used as a hedge against inflation. Fortunately, El Salvador becomes the first nation-state to approve Bitcoin as legal tender that is really good news because it can inspire other nations to start research to follow a similar track. If other countries get rolled out to approve Bitcoin, it increases additional demands of Bitcoin, and based on the supply and demand ratio, the equilibrium price of Bitcoin will be lifted upwards and it will help to increase the adoption. I see the long term impact in the Bitcoin price due to the step taken by El Salvador as it creates buying opportunities for Bitcoin because it can be used for various purposes but for the coming months, I do not see its remarkable impacts in Bitcoin's market because just legalizing Bitcoin as a legal tender does not force anyone to accept Bitcoin as the main currency. In addition, China is trying to crack down the Bitcoin mining as Qinghai becomes the third province to ban Bitcoin mining. You know, the majority of hashrate was coming from China, and mining ban will also affect the price of Bitcoin. So despite the positive news coming from El Salvador, Bitcoin should struggle to achieve another ATH in the coming months.
This is great news for crypto developments and one of the boldest breakthroughs. because in the world there are many countries that consider bitcoin a taboo subject, but with this news it might boost the country's economy even though there will be many obstacles later.
Positive impact: Bitcoin becomes legal tender and makes economy active in some more countries. Negative impact: Confusion is seen at payments due to the price volatility or because some shops are not prepared for bitcoin payment.
This is a major step towards adoption of cryptocurrencies and other countries will certainly be joining El Salvador. The power of blockchain technologies inevitability becomes the standard for transactions on a global scale. It’s bigger than a trend— here is the future of all things financial.
This will definitely boost the price of Bitcoin to an extent but as a drop can't make a ocean, we will still need more countries and institutions to embrace this movement. I believe strongly that whales are behind this massive downturn and this will continue until the available BTC is sold by individual holders and retailers who are concerned about their losses. But after the down moment is completed, the bull run will begin. In summary, the price will still go down following the script except countries and institutions come together in agreement to make BTC a legal tender and encourage a mindset term I call "hodling till dust" . Bitcoin is everyone's birthright and not for whales and manipulators only.
In an unprecedented milestone in the world, El Salvador, a small Central American country known for its mountainous landscapes, home to 170 volcanoes, and attractive beaches for surfing, seeks to break through to the technological and financial forefront by positioning itself as the first and only nation on the planet that makes Bitcoin a legal tender in the country, whose main currency is the US dollar.
any item that a debtor can always depend on to discharge his or her debt. Say Jack borrows $20 from Charlie. The debt comes due. Legal tender is a government-approved list of instruments that Jack can always rely on to cancel his $20 debt. In the U.S., banknotes and coins are legal tender. Importantly, not a single type of digital money makes it onto that list. So if Charlie asks Jack to pay him back the $20 with a Zelle or Venmo transfer, Jack can refuse. Instead, Jack can force Charlie to accept a $20 bill, or 80 quarters, or 400 nickels. Because these items are legal tender.
I believe that cryptocurrency is taking much impact to market. I'm a newbie with this but to what i observed in social media platform, they are taking so many people starting to invest with this.. Sooner or later, crypto currency will be known by many and embrance by humanity.. reat investment indeed with a high security with your money..
Any nation that legitimises crypto currencies and specifically mainstream coins like bitcoin can only enhance DeFi in general. Once legitimised - doubters start to look shortsighted and out of touch.
If the community accepts and uses bitcoin as their payment methods, or any other form of transaction, then that would mean a much more bitcoin cycle and it will be a positive impact to the crypto market as we all know bitcoinis the king of all cryptocurrency. If bitcoin is uptrend, so as the other coins.
Since the adoption, it means that the demand will be high and supply decreases so the price of Bitcoin will surely increase. This will surely affect other altcoins to make them to markedly increase too. But this will take time for the market to be bullish again because market is bearish now. Also the legal tender will also make it increase because it will be used in different ways.
It will enlarge crypto community thereby setting it as standard for all transactions. As well as increasing the value of all crypto coin traded
From an investment perspective, the El Salvador news should raise eyebrows. One view of BTC is as a cheap call option on a future money system. A sovereign nation making BTC legal tender derisks the thesis. And as a long-dated "option", even a small derisk can have a big impact.
The impact of this declaration could be phenomenal as it legitimises bitcoin as a contender in the battle for global currency dominance. It all depends how many other nation states follow suit and/or work to suppress popular access to bitcoin.
With regard to the information in El Savador, I think that in the future, bitcoin's future will be even more glorious because if many countries have followed the El Savador country (using bitcoin as a legal tender) then it is not impossible for bitcoin to be an option or to become a favorite payment instrument legal worldwide.
I think bitcoin will rise to the $100,000 mark, certainly the crypto market will grow strongly by the end of the year Good information and market trends with investors are very supportive of bitcoin growth
República de El Savador is a country located in Central America and is the most populated country in its subcontinent with an estimated population of over 6,000,000 inhabitants. Currently, the official currency is the Dollar, which was implemented in 2001, this has not changed the situation of poverty and social inequality that is still fighting hunger. Adopting bitcoin as an economic alternative raises the hope that this country will be able to undo the shackles imposed by financial institutions and the corruption that exists in countries with a fragile economy and political framework.
Actually we have hard time on crypto market in these days, I was waiting a decline for today on the market. Because the China is giving negative feedbacks. In this side on El Salvador may need the power of the cryptocurrency market assets, but in the other powerful country like China the situation is a little bit different. Also the US parliament is give bad news today like China, as negative effects of mining machines to the green world. In my opinion like El Salvador countries' needs won't effect positively to the market. Because the China and Us will be seems to first enemy of the cryptocurrency. They are making money with humans' dreams.
While it is interesting news, I'm not sure how much it will, or even should nudge the price of bitcoin. Much like Elon's tweets, ideally actions like the one in El Salvador are simply signs of mass adoption, rather than things that should, in 5-10 years time, push up the price of bitcoin by 5%. The challenge at the moment is the degree of volatility, and also sharp trading by whales and those looking to profit from violent price swings. Personally I love El Salvador, having spent time there, and I wish them well, but, going forwards I would hope that moves like this have less and less impact on crypto prices.
Accepting bitcoins as a means of payment has a number of advantages for sellers. First, the commission must be paid by the sender; the seller pays nothing for receiving the funds. The commission charged is significantly lower than that charged by traditional payment systems. Bitcoin allows you to make payments around the world without being tied to any currency. Since bitcoin transactions are irreversible, the buyer will not be able to cancel their payment, which reduces the risks for the seller. Unlike traditional bank accounts and payment systems, there is no monthly subscription fee or account maintenance fee for using Bitcoin.Using bitcoin, you can easily make large payments, there are no restrictions on the amounts. Some payment systems charge a higher commission for large amounts or limit the maximum transaction size, which can create difficulties for those who sell expensive things.Buyers also benefit from using bitcoin. The system provides fast enough confirmation of transactions-within 10 minutes. This is very convenient for international transfers of funds. When using the bitcoin network, the total cost of the buyer for the purchase of goods can also be reduced due to the fact that the seller does not need to pay high fees for servicing their accounts. Bitcoin wallets can be used on any electronic device-Android, Apple or PC. You can store your wallet on a USB flash drive. The security of transactions between individual bitcoin network users selling something to each other has increased significantly with the introduction of multi-signature escrow services.
Increasing trust is crucial for widespread adoption. Probably this time the impact wouldn’t be so decisive, but still it goes in the right direction and many of these decisions will come. For the cryptocurrency I see a bright future.
Bitcoin as a whole is an embodiment of impact in the financial sectors of the world. The crypto market has experience a high tendency of profitability in the coming months dues to the reality on ground around the shift in price and the stability in the market right now.
The fact that Bitcoin is recognized by El Salvador as the official legal currency, it already means the greatest achievement in the crypto world! 👏 I think in the future this will give impetus to many other similar small countries to attract investments in Bitcoin and develop the economy, which is naturally a prerequisite for the exchange rate increase in the near future. However, I personally do not expect a significant increase this year 🤷♂️🤝
5% it is not a very big deal. A single situation is not a rule. It is nothing like an impact, I think. But that is a good sign. The way I see it government is looking for an opportunity to dealing with BTC as a value. Its much more good news for the government itself than for people
This step is considered to be able to lift the economy of El Salvador and solve the problems of the developing country. This is the first time a country will use Bitcoin as a legal tender. Interestingly, the currency of El Salvador so far is the US dollar. Developing country problems such as low digital financial inclusion, foreign investment problems and high inflation problems will be well resolved by Bitcoin adopting blockchain technology. This means that this technology will continue to grow and increase the demand for Bitcoin. The price of Bitcoin is going down this is a good opportunity to take advantage of this technology and the opportunity to buy Bitcoin at a cheaper price than the beginning of last year. The existing Bitcoin innovation will make Bitcoin have a higher demand so that Bitcoin has the potential to rise back to a higher level in the future.
A Single Spark Can Start a Prairie Fire~~~~ There's a saying that I think is very true: It's not that Bitcoin needs El Salvador, it's that El Salvador needs Bitcoin. A healthy economy and a sound currency are supposed to go hand in hand. These small countries in Central America, and indeed the backward countries of the world that are still in dire straits, have a lot to do with their inability to effectively develop their economies and their lack of a sound currency to keep the dollar from invading and looting them. Dollar-dependent economies shape authoritarian regimes, making the leaders of these countries easy agents for the U.S. to buy. When their power comes not from the people, but from the dollar. Marx argued very eloquently that the economic base determines the superstructure. Bitcoin is expected to transform and revolution just starts to begin!
It is clear that Bitcoin is an acceptable currency between most people in the world. However, if this popularity continues to increase the recognition event on the basis of countries, Bitcoin can be the largest and most common currency. In this period, especially if it spreads the diseases of the manifestable monetary and derivatives, virtual payment systems and especially Bitcoin will take himself to the fore and will be placed to the top.
We will see. The ability to use BTC as legal tender does not translate to adoption. If BTC is actually used in conjunction with other BTC based projects like Stacks, which would allow contract implementation, we might see the price of BTC begin a very steady upward trend.
The market is reacting positively from El Savaldor's news. Many people will think this is a good time to open a SHORT but that would be a mistake. AWe have had a nightmare month since 15th May and next time 16th June will probably be bullish again . A lot of people are waiting for $BTC to go back to $27,000 but I know that can't happen right now. and if $BTC goes down to that price they won't buy and continue to be scared. They will have to buy at a higher price. It's part of the game
It can be example for other governments around the world as real cases using crypto. El salvador is pioneer of using crypto in governmental activity, which has added legal value of bitcoin in government
El Salvador has shown us that Bitcoin is as good as a tender note. This major adoption lead by a state or government creates a big impact in our financial systems as well as a Big Opportunity for the whole crypto space. Thus, this will serve as a good solid basis for cryptocurrency and the cryptomarket in general. The trend in digital currencies presented a lifelong good example of Bitcoin's usability , effectiveness and importance in today's financial world. Bitcoin is still King and is the gift of technology in our current financial challenges and shortcomings. Who will be the next State or government to adopt Bitcoin? Will there be more? These are the questions that we will be pondering. A remarkable phase in financial history has taken place and we are blessed to experience in our time!
Depending on how it works out short term I do believe that if it is doing good more countries will follow shortly after. After last months crash this could be the best thing and the market could explode. I doubt it will skyrocket but it will grow quickly with more people actively making transactions with all the different cryptocurrencies.
Blockchain tecnology and especially Bitcoin will have a huge impact on all of us. For countries with high inflation rates this will be a safe heaven. The decentralization is a key part of the whole equation. Finally the impotance of the USD as the most important currency will diminish and Bitcoin will be used as the main one. It will also take away the power of the rich(banks, Rothschild`s and the like). Bitcoin is much more than a store of value - it is a change/shift in mindset. Finally :)
The most direct, now everyone will start accepting bitcoin as El Salvador, which will lead bitcoin to the national currency in many countries
Bitcoin in El Salvador has a promising future in that country .The more people trust bitcoin as the money of the future will decide if the money will circulate and used by everyone in everyday transaction.
it could give Bitcoin and other cryptocurrencies another foothold in the mainstream financial world by making it easy to pump and be valuable.
I think the value of bitcoin will rise again and it will be stable by then up to end of this year. And more country will adopt this digital cryptocurrency. There will be more investors in Cryptocurrency.