money: 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.

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.

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...

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.

President - Founder & CTO

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

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.

Student

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

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.

Software engineer

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

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 !

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.

System and Network, VOIP Engineer

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

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.

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