Topic: will Argentina follow El Salvador? - page 4. (Read 623 times)

Do you have any data on this? As far as I know, El Salvador is the only country that has used its national budget to invest in bitcoin. Although their investment is profitable, one thing we need to know is that they have been continuously buying bitcoins for years and have not sold any bitcoins. So how can we say that bitcoin is positively impacting and helping their economy improve?


Also, where will economically struggling countries get the money to invest in bitcoin, and what will happen to them if a bear market suddenly hits and lasts for years?

By the way, to improve a country's economy, the government needs to take action and come up with reasonable economic policies to improve people's lives, fight corruption...Don't be naive to think that just relying on a volatile asset like bitcoin can improve a country's economy.

They call it unrealized gains. If "El Salvador" were a person or entity living in Denmark, the government would likely tax them on that, which might force them to sell their holdings. Denmark isn’t exactly a Bitcoin-friendly country, as they aim to tax unrealized profits heavily.

Denmark to Become First Country to Tax Unrealized Crypto Gains

Almost every politician is waking up to the fact that crypto is mainstream, and is now here to stay. Most big coins are already established and aren't going anywhere. Bitcoin, Ethereum, XRP Tether Monero etc. Each have their own use cases for society.

Milei is known as a Pro-Bitcoin polititcian before he was elected as a President of Argentina. With his adminstration, Argentina will have more Bitcoin and cryptocurrency friendly but will they do same things like El Salvador, I don't know. The national economic sizes of Argentina and El Salvador are different, with Argentina has a bigger economy.

Milei will have more problems to solve, more challenge to pass through, to do big policy changes in Argentina. With success of El Salvador and Bhutan, Argentina and other countries with Presidents who are pro-Bitcoin and pro-cryptocurrency can more seriously investigate those successful cases and try to learn from this, apply successful strategy for their countries.

Sorry to say that doesn't mean Argentina can follow the economic growth that El Salvador is experiencing now. I mean about adoption it's a good thing but with Bitcoin currently at its highest point maybe Argentina needs more time. El Salvador is a country that has full faith in Bitcoin since the beginning, and bitcoin was at its lowest level at that time. El Salvador is now enjoying the fruits of its labor, you know yourself if someone who bought under 50K and someone who bought over 100K their fate can't be the same.

Since El Salvador only owns/hodls bitcoin and they are not selling it, you can't really say they made a  profit.

Even though it is a cool development but I have to say that things are not that simple that if a country with economic problems adopts bitcoin, it would magically help. It may even cause more problems if not done correctly and without fixing other problems.
Think of it as an individual with lots of debt borrowing money to invest in bitcoin and then bitcoin crashes and they have to panic sell and be in an ever bigger debt.

El Salvador situation improved under Bukele not because he adopted bitcoin but because of hundreds of other good decisions he made like solving some of the fundamental problems in the country like the gang problems, the corruption, the attracting of foreign investment, etc. Bitcoin was like the cherry on top. For example as Bukele improved the country's security and started attracting foreign investment, he also did it through bitcoin.

It is the same with Argentina. Bitcoin is not the magic solution to solve decades of economic problems. The crazy man in Argentina has also done a lot of additional damage ever since he took office to the point that Argentinian inflation went to almost 300%.
Although some claim that this "shock therapy" is going to help in the long run but still bitcoin can only be that "cherry on top" not the solution itself, and only after dozens of fundamental issues in Argentina are solved.

I just stumbled upon this news, and I find it very positive and worth sharing as it might signal that Argentina could soon follow in El Salvador’s footsteps by making Bitcoin a legal currency.

From what I’ve read before, it’s often better for countries struggling economically to adopt Bitcoin. This might be the case here, especially since El Salvador is now gaining recognition for its Bitcoin investment and has already profited more than 100% at the current price compared to its original investment.

El Salvador and Argentina Regulators Sign Agreement to Help Develop Crypto Industry