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

Business Analyst /Blockchain Enthusiast

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

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)

BlockChain Polymath

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

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...

Doctor

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

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.

Junior stake

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

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.

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.

Freelancer

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

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.

Crypto Enthusiast

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

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

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.

Engineer

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

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.

Teacher

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

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