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

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.

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.

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.

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.

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.

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 !

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

Trader

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

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.

Civil Service

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

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

Information Technologist, Affiliate marketer,Banker

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

It will enlarge crypto community thereby setting it as standard for all transactions. As well as increasing the value of all crypto coin traded

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