Salvador and Bitcoin

[Anis Boukezzoula]

The President of El Salvador announced the country's purchase of 150 bitcoin units, bringing the state-owned to 700 units.


What do you think about this step from the President?

For me, I think it is hazardous to mortgage the economy of an entire country on cryptocurrency.

 

[Trexxxy]

This was a huge mistake and it is evident now. The only result that is going to come out of this is your local currency will crash because it isn't a strong currency in the first place, introducing the use of crypto only makes things worse for your currency because the prices of crypto are very volatile and can't be relied upon. If you pay a worker 50 dollars in bitcoin prices drop the next day, the same 50$ is worth around 30$ how is this going to help the economy?

 

[Stnicholaz]

This was a huge mistake and it is evident now. The only result that is going to come out of this is your local currency will crash because it isn't a strong currency in the first place, introducing the use of crypto only makes things worse for your currency because the prices of crypto are very volatile and can't be relied upon. If you pay a worker 50 dollars in bitcoin prices drop the next day, the same 50$ is worth around 30$ how is this going to help the economy?

I agree with you.. I don't he was fully advised before taking such decision of investing such amount on cryptocurrency. I think there should be regulatory measures that they need to enact to protect their local currency.

 

[Trexxxy]

I agree with you. I don't he was fully advised before taking such a decision of investing such an amount in cryptocurrency. I think there should be regulatory measures that they need to enact to protect their local currency.

I agree I think what they should have done is to find a way to boost the local currency either by investing more in infrastructures and boost local production as well as help businesses and the local economy, not mortgage the whole economy on bitcoin.

 

[Blessedsam60]

Sigh! This can be a two a way thing. I don't know if there's another plan set aside to ensure the security of the country's currency as crytocurrency reliance could cripple the whole thing in that country

 

[harrypaul]

The adoption of Bitcoin as a legal tender by the Salvador government was a huge mistake.
With the current lose in the Bitcoin price, automatically there is a great lose in the economy of the country.
The president ordered that any individual or company who doesn't accept Bitcoin would face the law which is so dangerous.
A Bitcoin worth $100 last week, today it may not worth up to $80 because the market is deep, so actually the economy of that country is going donlwn with Bitcoin as wel

 

[Joymax]

This was a huge mistake and it is evident now. The only result that is going to come out of this is your local currency will crash because it isn't a strong currency in the first place, introducing the use of crypto only makes things worse for your currency because the prices of crypto are very volatile and can't be relied upon. If you pay a worker 50 dollars in bitcoin prices drop the next day, the same 50$ is worth around 30$ how is this going to help the economy?

I totally agree with you. There should be a kind if balance in this things. El Salvador local currency is not even strong and crypto currency prices are not stable.

 

[Nomad]

If the country bought 150 bitcoins for the price of $50,000 and if the price per coin becomes $100,000 in a couple of months, people in El Salvador will thank the president. However, if it drops back to $30,000, they will curse the president.

 

[tyrim88]

I think the step taken by the president of the country will have a far reaching effect in the nearest future,because the curency they are promoting is a volitile one,and can make those with the coin to be rich within a few days,and the tide can go the opposite as well.

 

[Monster Masterpiece]

It is matter of lack so if price is down then they will not sell and if price is high than before they will sell it is strategy so it is possible that bitcoin falls from 50,000 $ to 5,000 $ then resume increasing to 65,000 $ so long term investment.

 

[mcjerry]

How much is 150 bitcoin that will make a country mortgage there ecomic on crypto currency. In my own view I think that they just want to invest in the coin

 

[Elfinito]

I wonder how the country economy is really faring right now that Bitcoin is facing a downward trend.
The president made a huge mistake and I hope other countries learn from it

 

[Kubiat-Abasi]

This is a risk that has already been taken. The best they could do is hope for the best or for the worst. After all if it goes positive everyone will want to share the praise!

 

[ahmedo24]

The recent bullish in Bitcoin recovery earned the El-Salvador government about $4 million profit, the decision is a good one and they will continue to make progress in my opinion.

 

[tyrim88]

The recent bullish in Bitcoin recovery earned the El-Salvador government about $4 million profit, the decision is a good one and they will continue to make progress in my opinion.

one of thing that makes one a tough business person is your ability to take certain decition and stand by it,Bitcoin actually have a huge prospect in the e-commerce world and other areas of business transaction.So it is not really a risk for the govt to adopt bitcoin as a legal tender.

 

[Nomad]

El Salvador is mining bitcoin by using volcanic energy. They had to do this because bitcoin mining consumes a lot of energy and they could no take chances with using a currency with high energy consumption.

 

[Niftyyem]

Adopting bitcoin as a legal tender is a two-edged sword kind of thing but I still think the people will likely have the present to thank in the future at the rate bitcoin keeps growing.

 

[ahmedo24]

Adopting bitcoin as a legal tender is a two-edged sword kind of thing but I still think the people will likely have the present to thank in the future at the rate bitcoin keeps growing.

I quite agree with you and my advice to the El salvadorians is for them to be conscious of the nature of cryptocurrency and learn how to diversify because cryptocurrency is volatile.

 

[Sincerem]

El-salvador are one of the reasons BTC made a turnaround and on the uptrend. Their adoption have really motivated others to consider legalizing BTC too.

 

[Kingstone]

I really hope the president will not suffer the consequences in the long run. Even if this year is a good one for him, the following year might not. Crypto is very volatile and this may backfire at any time.