El Salvador is the first country in the world to make Bitcoin their legal tender. This means BTC can be used for transactions in the country like fiat. At the same time, they have been accumulating Bitcoins as an investment, hoping they will bear huge returns in the future. However, their Bitcoin experiment hasn’t been fruitful till now, at least from an investment perspective; they are in major losses, with Bitcoin plummeting below $20k. But this doesn’t affect El Salvador president Nayib Bukele, who is optimistic about leading other countries in BTC adoption if their experiment succeeds.
Nayib Bukele on El Salvador’s Bitcoin experiment
There have been a lot of people calling the country’s Bitcoin experiment an utter failure. It just doesn’t stop there, as there are rumors that the country is even collapsing due to this move. However, Nayib Bukele has recently cleared the air that the situation is nowhere like it is stated, and the allegations made by the media are false.
At present, the country has nearly 2400 Bitcoins on its balance sheet, and they continue to buy more at current prices. This is necessary to bring down the average price as the initial purchases were made at a very high price of about $50,000. Yes, we can argue that on the investment front El Salvador is in a major loss, but we all know about BTC’s volatility and the need to hold it for at least 4 years to realize gains.
Many citizens of the country are also happy about the move by the government. The lives of many people have gotten easier after BTC became legal tender. It is fast and easy to use and also saves the citizens a lot of banking costs. For example, families who receive money from abroad can now get it directly to their BTC wallets which is instant and very cost-effective, unlike the traditional banking system.
Nayib Bukele believes that the ones who criticize their moves the most are the ones who profit from them. BTC changes everything for El Salvador, so they are willing to go to the lengths of defaming the country for their personal benefit.
The real truth about this move by El Salvador
The country has seen major growth in GDP and tourism after making BTC a legal tender. In 2021, their GDP growth was 10.3%, and employment rose by 52%. Other important growth metrics like revenue from exports and tax collections have increased, while the crime and murder rate has fallen.
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