Topic: El Salvador has become the first country to make #Bitcoin legal tender! 🇸🇻 - page 114. (Read 43211 times)

It would only be matter of time, what would be said as an unwise decision made by countries that legalize bitcoin as a legal tender would be later changed to a brave decision that later favoured. Bitcoin price decreases and unfavoured period like this present bear market has been in history, not only in 2022 but back then in 2014 and 2018. These should not be a surprise but a possible indication that next long period bull market is coming and should probably be in less than 2 or 3 years from now. It can be far, but the months of bulls that will lead to all-time-high will become tomorrow soon. You are saying the truth, the world has been full of lies since the beginning of human advancement.

Can you see what I quote in bold now when I first brought the topic, you can read it below:


I hope you can get the meaning of that bolded quote, that is just how the world is, there are bitcoin critics and people prefer to take up the unimportant part that is not having significant effect on economy compared to the main ones they should talk about. Bitcoin adoption is not the problem of El Salvador, even El Salvador is not as rich as many other countries when it comes to citizens holding and buying bitcoin. People just failed to understand that countries that do not make bitcoin a legal tender but their citizens buy are also having such effect just like El Salvador, but people are not talking about that but focus on what is not.

There is not dream that reality kill, bitcoin adoption continues as a result of what has happened in the past. I hope you are not the type that will change your mind during bull and again change your mind during bear and change your mind again during bull. Bitcoin is a safe haven but in long term, not short term.

We should also not forget that El Salvador is a poor country, their president bought a risky investment near the all time high and he used taxpayers money to buy this risky investment. What would this make him appear in front of his constituents presently that bitcoin has dumped?

I support the inspiration of uniting South America under bitcoin, however, it appears reality has come again to kill the dream. But what has just occured is they have become bagholders. If someone told you a country and a multibillion electric car company would become bagholders of bitcoin, no one would believe you hehehehe.

For sure they had already studied about the probabilities thats why they are already expecting something like this for the market to be on this condition.Its true that 1 btc is always equal to one and no matter what
happen as long they dont sell everything or anything then its not considered to be losses.It might be on negative or deep reds but its not really into that situation where its totally considered to be one.
They could always opt to hold and wait and even the President might be considering on buying even more with these cheaper price since he do indeed know on how crypto game
works and only to those dumb or lacking some ideas will really be just whining and keeps complaining.

In my opinion, this statement is the mass and media consumption of something similar to populism. No party that uses cryptocurrencies periodically can not be affected by a sharp decline in price, whether in the current wave or others in previous crises and even the next.
For savers, we cannot talk about a definite loss as long as the savings have not been touched and as long as there is a firm conviction that the price will return to the rise. But once they think about their use, they are necessarily losers. Do not forget, my friend, that we are here to talk about a country-wide investment with an important economic size .

Sure, but we should not ignore the obvious consequences of the bear market we seem to be going into.

The fact that El Salvador (and other institutional investors) is in the zone of unrealized losses will be use as ammo by the detractors of Bitcoin and decentralization as a whole. I would not feel suprised if the FMI and the World bank started to issue some official declarations against the "unwise" investment made by the Salvador in Bitcoin, I would not feel surprised either if some protests started there under the narrative that the president is gambling the money of the people away, etc.

We all know Bitcoin has powerful enemies and during this bear market they weill show up again, wielding as well the Terra-Luna and Celsius cases as extra ammo to seed the FUD around the community and the people of Salvador.

At Which volume, i don't think that's so important in this situation, since Bitcoin is a decentralized currency and being used and adopted as an alternative currency in El Salvador, the volume at which the country reserve stands is what is important and since 1 Bitcoin= 1 Bitcoin and the 2,301 holding is still intact El Salvador government through the president understand the game quite well and are prepared what this even before the Bitcoin adoption and that can be deduced from the minister of finance interview yesterday.


Screen short source: https://cointelegraph.com/news/el-salvador-has-not-had-any-losses-due-to-bitcoin-price-dive-finance-minister-says

I agree, they’re using an accounting trick that can be risky depending on how much is actually being put into the trust.

To be fair tho, i think they took the danger into account. The trust is relatively small with just 150 million $, this can’t bring them into any serious risk.

Also with the hospital thing, they marketed a short sited gain as a win, which is questionable(but this is politics). But i still think a country with such a weak economy should invest into infrastructure and jobs and this 4 million $ were more than well spent.

// Edit: Also i cant think of a model that better fits their interests than this.

1. As Bitcoin goes down, they can accumulate more sats for cheap, keeping the trusts value stable.

2. As Bitcoin goes up, they can pull usd out and take home profits.

Leaving them with more and more Bitcoin over time, till they run out of usd. Then they can scale the trusts value higher.

They would never need to dump btc on the market(which is good for price), but they can still pull out profits and stack sats. This fits perfectly into the bet we all do with Bitcoin, we want more sats not fiat. Is there a smarter way than this?

I am sure that it is worth looking for a very thin level between whether to use bitcoin, and if so, in what volumes. I think it's pretty important.

Sometimes though, you can’t have it both ways …:

Whilst the above is true on its own, not that many months ago, the non-realized surplus due to BTC prise rise back then was the argument for financing the construction of the Pet Hospital:


It’s a dangerous game playing each direction with a different set of rules (though we may know which one is right and which one isn't)…

I think El Salvador government prepared before they accepted bitcoin as a legal tender, see what Alejandro Zelaya, the minister of finance of El Salvador said about buying bitcoin.

https://cointelegraph.com/news/el-salvador-has-not-had-any-losses-due-to-bitcoin-price-dive-finance-minister-says



We all know that the second  quote is true, 1 BTC is equals to 1 BTC, if El Salvador has not sold bitcoin, this is not loss. Some holders will see the price falling, only what they think about is to wait for another years for all-time-high.

How do you see people that are criticizing El Salvador government as bitcoin price has decreased? As for me, I see them as someone that will only panic and sell, thinking they have lost money, but latter regret this in long term when the price of bitcoin reach all-time-high.

I know all that. We are talking about reasons why Salvadorians can protest against bitcoin adoption and not transparent system is one of most substantial reasons for that. If we'll get answers to the questions about the keys it will not solve all the problems but will make the situation more transparent. And yes, I totally agree that it is much more reasonable for Salvadorians to use non custodial wallets instead of Chivo.

They’re still using the US dollars and Bitcoin as legal tender, no „actual currency“ was ever taken away, what is there to demand? Chivo(their wallet) actually let’s people decide if they wanna receive Bitcoin or usd, you can convert anytime you want, no one is forced to keep payments in Bitcoin.

Before i cringe too hard, please inform yourself what actually causes inflation, if more people did maybe we wouldn’t be in this mess.

It’s funny that people that don’t even understand what causes inflation, come here with a time horizon of a few months(that’s not how to build things), and then try to judge one of the poorest countries in the world for trying to better things. Where were y’all before they adopted Bitcoin? Y’all didn’t give two shits.

They certainly don’t need approval from a mob of emotional people that don’t even understand basic economics. And an exchange rate into usd doesn’t change what Bitcoin is, it still works the same as before, still has sound monetary properties. Let people time to build things without falling into hysteria, thanks.

I think you are beginning to add feelings into this whole thing, don't used present Bitcoin price conditions to judge long term goals. El Salvador is a country and its total Bitcoin holding has never be touched or sold before and this is because the country have a long term goals for Bitcoin not some short fallacy of getting rich quck mindset.

A country make a coin a legal tender, you are calling it an experiment, that is completely wrong. Some other countries can see it as an experiment for them to know if it will work good in El Salvador or not, but not an experiment in El Salvador.

Well that worked out great for them. Because now people are going to demand their actual currency and make inflation even higher.

it is an experiment, final success is not warranted.

Explain this into details, how has bitcoin affected El Salvador?

You still do not get the fact

Some countries government are hostile to bitcoin and never like its adoption and make a ban, just like China, but reverse is the case with El Salvador, bitcoin was adopted, even as a legal tender.

If something is accepted as a legal tender, the government will want to have control, El Salvador as a country bought the bitcoin that are used with Chivo wallet which is centralized, making fee to be cheap and transactions to be instant. That is how he centralization is helping.

But it is not compulsory Salvadorans should use Chivo wallet, if they like, they can use Electrum or other noncustododial wallet if they want.

About the transfer of power, remember bitcoin transaction is more transparent than fiat, the government can not mishandle bitcoin if compared with fiat.

I think you need to wake up, if you are a Salvadoran, use noncustododial wallet instead of Chivo wallet if you want.

Who controls the keys? I think about it over and over: who controls El Salvador's bitcoin savings keys? Who controls keys of Chivo wallets? How would these funds be protected after transfer of power? What is good in bitcoin is that I don't need to think about trust towards anyone. How it is done in El Salvador makes me think about trust towards Bukele and his team. It is not the same to me.

seriously? you have just read  the news yesterday? when the demonstration had been going on since day 1 of adoption?

the EL Salvadorian is not that happy for them being forced of this adoption when  the government can make a trial first or at least to have a plebiscite  so they can learn the peoples heart about Bitcoin.

Now this become a bad omen to the country because the supposedly to help their economy ? look at their country now.

Last year during the June month El Salvador President Nayib Bukele announced that he will send the bill to make bitcoin legal tender within the country. One year passed and during the same time period the announcement have been implemented during the month of September. Following the same El Salvador government started to accumulate more volume of bitcoin. As a result now El Salvador have got 2301BTC in its reserve. The $100million spending have come down to $70 million due to the drop in the market. Meanwhile it have faced several criticism, warnings and lack of support. Amidst that El Salvador stays strong in its decision. During the first year of adoption it is termed as a failure through different surveys. After several negative comments against El Salvador's adoption of bitcoin President Nayib Bukele is strong to make his country better through bitcoin.

When a person is new to the bitcoin market, everyone used to give suggestion that you should have patience to enjoy the growth of bitcoin. Here also same is the situation, but very few agree on it whereas majority make fun how the president is gonna come out of the ongoing crash that'll have impact on country's economy.