Since the announcement of El Salvador’s official adoption of Bitcoin as legal cash in September, Nayib Bukele has amassed approximately 1,300 BTC. However, according to recent estimates, Bitcoin transaction rates in the Central American country have dropped to a four-month low, with more than 85 percent of the populace expressing diminishing enthusiasm in using BTC for daily transactions.
Bitcoin usage drops 89% in El Salvador, 2022 looks gloomy for Bitcoin
As Bitcoin usage drops 89% in El Salvador, 2022 looks gloomy for Bitcoin. Mr. Cryptowhale, a top controversial crypto pundit, made this remark on Twitter, saying that the world’s apex cryptocurrency will lose its legal tender status because of “high transaction fees, poor transaction time,” and “outdated technology.”
Over two-thirds of El Salvadorians are purportedly anti-Bitcoin, according to the analyst – a claim that has yet to be confirmed.
While transaction cost and latency difficulties plague not only Bitcoin but nearly all of the top ten crypto assets traded globally, Salvadorans have experienced special issues with their government-approved Chivo wallet.
A list of impacted addresses was disclosed on December 16 in a tweet, with nearly $100,000 worth of BTC purportedly gone from consumers’ wallets. With almost 3 million active Chivo users, it’s unclear whether Bukele will respond to those claims or attempt to compensate people for their losses.
El Salvador Profits Despite Growing Repine
Nayib Bukele announced avails of $4 million following Bitcoin’s historic all-time high in November and has since started the first phase of a score national 400 standard school projects. Even though a significant portion of indigenous businesses remain skeptical of Bitcoin due to growing complaints, the nation is on the verge of completing its first veterinary hospital and is gearing up to become a shining example of Bitcoin success, with over $140 million stashed away in its trust reserves.
The IMF and the World Bank have both issued severe warnings, forecasting a cloud of uncertainty that will drive investors away from the country’s economy as a result of cryptocurrency volatility.
Still have high hopes
Despite the avalanche of criticism directed at Bitcoin, Bukele has remained an unflinching believer in the currency’s future potential. Bukele was cited as stating in a pre-Christmas tweet:
“The #Bitcoin Experiment,” as it’s been dubbed by international organizations, is nothing more than the world monitoring how mass adoption affects a country’s economy. It’s game over for FIAT if it’s for the better. El Salvador is the ignitor of the true revolution.”
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