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

Cyber Security, Blockchain and 3D Printing

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

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.

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.

Engineer

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

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.

Farmer

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

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

Full stack develop

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

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

Businessman

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

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.

Crypto researcher and writer- Copywriter

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

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.

cryptoethusiast

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

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.

Algorithm creator, coder, chem. engineer,trader,investor

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

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.

Front-end Developer / UIX Graphic Designer at KPMG

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

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