price: 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)

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.

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.

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.

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.

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

Security guard & Cryptocurrencies Trader

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

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.

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.

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