El Salvador becomes the first country to adopt Bitcoin as legal tender alongside the US...

[Shawn Knight]

Why it matters: Critics have questioned whether or not Bitcoin is suitable for use as a common currency due to its wild fluctuations in price. Case in point, Bitcoin is up nearly 14 percent over the past 24 hours on the news. If nothing else, El Salvador's adoption of Bitcoin could serve as an interesting case study for the viability of Bitcoin as a traditional currency.

El Salvador has become the first country to officially adopt Bitcoin as legal tender.

The nation’s legislature approved the Bitcoin Law by a supermajority, with 62 members of the Salvadoran Congress voting in favor of the measure.

Per the Bitcoin Law, prices for goods can now be shown in Bitcoin and tax contributions can be paid with the virtual currency. What’s more, exchanges involving Bitcoin will not be subject to capital gains tax. The law further states that the exchange rate between Bitcoin and the US dollar, the country’s other official currency, will be freely established by the market.

I’ve just sent the #BitcoinLaw to Congress 🇸🇻 pic.twitter.com/DljnxsXlyt

— Nayib Bukele 🇸🇻 (@nayibbukele) June 9, 2021

El Salvador is located in Central America, bordered by Honduras on the northeast, Guatemala on the northwest and the Pacific Ocean to the south. According to Statista, El Salvador had a GDP of $27.02 billion in 2019.

In April, the world’s largest cryptocurrency by market cap hit an all-time high of more than $64,000 but has since lost nearly half of its value.

Image credit FabrikaSimf

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https://www.techspot.com/news/89999-el-salvador-becomes-first-country-adopt-bitcoin-legal.html

 

[NightAntilli]

And so it begins... Not bad for a so-called "Ponzi Scheme" right?

FYI it will be mined with geothermal energy near volcanoes.

 

[QuantumPhysics]

And so it begins... Not bad for a so-called "Ponzi Scheme" right?

FYI it will be mined with geothermal energy near volcanoes.

You think this is a good thing?

el Salvador is an impoverished country.

Bitcoin worked really well for TESLA lol.

 

[terzaerian]

Gentlemen, please recalibrate for the next goalpost shift. Heavy chances of "it's only legal tender in El Salvador, not [x], so who cares".

 

[NightAntilli]

You think this is a good thing?

el Salvador is an impoverished country.

Bitcoin worked really well for TESLA lol.

What does El Salvador being an impoverished country have to do with it? This might actually be something that helps lift their people out of poverty, if anything. Percentage-wise, El Salvador has less people in poverty compared to Mexico and even Greece. If it was those countries, would you be using the same excuse?

TESLA no longer accepts BTC because TESLA is not actually a profitable company without compensation like carbon credits. And in order to keep receiving carbon credits and other benefits, they had to step away from encouraging BTC because of all the FUD being spread regarding power consumption and the environment.

 

[VitalyT]

Imagine life where your account fluctuates +/- 20% a day. This is as crazy as it gets. Or some morning you wake up, and 50% of your money got wiped out, not for any specific reason, just 'cos, on the whim of insane Bitcoin traders.

It doesn't get more f-d up than this.

I think that El Salvador authorities and any resemblance of intelligence have partied ways long time ago.

 

[DZillaXx]

What does El Salvador being an impoverished country have to do with it? This might actually be something that helps lift their people out of poverty, if anything. Percentage-wise, El Salvador has less people in poverty compared to Mexico and even Greece. If it was those countries, would you be using the same excuse?

TESLA no longer accepts BTC because TESLA is not actually a profitable company without compensation like carbon credits. And in order to keep receiving carbon credits and other benefits, they had to step away from encouraging BTC because of all the FUD being spread regarding power consumption and the environment.

TESLA is profitable, but that doesn't mean they are not spread thin and are using debt to expand at a very rapid pace. The Credits massively help offset the monthly debt costs. The Company doesn't only make cars. They are trying to become one of the leading manufactures of Lithium Ion Batteries. Building up the infrastructure to do so isn't cheap.

Electricity that is produced by power plants that goes used isn't saved, and 90% of the time they just can't scale back. The power would have been wasted regardless if mining was going on or not. The only time mining hurts your neighbors is when there is a power shortage and the demand from crypto mining operations is too strong. More of an issue in 3rd world countries.

We don't store unused electricity, so actually smart use of crypto mining could be a very good thing. If it was managed correctly. Though investing in actual ways to store power, such as batteries or something like water pumped into reservoir, is by far better use of time and money.

 

[captaincranky]

If anyone takes the time to read this:

El Salvador Profile

El Salvador is a relatively small but growing player in the drug trafficking business. It serves as a drug recipient and storage point along the Pacific Coast, and a bridge via the Pan-American Highway, the Fonseca Gulf, and roads from Honduras that cut through relatively unpopulated areas. Read...

insightcrime.org

You'll quickly realize why bitcoin is the best possible gurrency they could hope for.

 

[yRaz]

If anyone takes the time to read this:

El Salvador Profile

El Salvador is a relatively small but growing player in the drug trafficking business. It serves as a drug recipient and storage point along the Pacific Coast, and a bridge via the Pan-American Highway, the Fonseca Gulf, and roads from Honduras that cut through relatively unpopulated areas. Read...

insightcrime.org

You'll quickly realize why bitcoin is the best possible gurrency they could hope for.

1 bitcoin could run their whole economy

 

[captaincranky]

1 bitcoin could run their whole economy

One bitcoin out yes. But one bitcoin in could just cause rampant inflation. (Assumiendo el presidente.no ponerlo directamente adentro su cuenta personal)..

 

[umbala]

And so it begins... Not bad for a so-called "Ponzi Scheme" right?

FYI it will be mined with geothermal energy near volcanoes.

Just because some third world country made a desperate move and made it legal tender does not mean that it now magically has some value. The only reason bitcoin has any value at all is because there's always a sucker willing to pay even more for it. The only way you can make money from bitcoin is by finding an even bigger sucker than yourself, exactly like a ponzi scheme.

 

[NightAntilli]

Imagine life where your account fluctuates +/- 20% a day. This is as crazy as it gets. Or some morning you wake up, and 50% of your money got wiped out, not for any specific reason, just 'cos, on the whim of insane Bitcoin traders.

It doesn't get more f-d up than this.

I think that El Salvador authorities and any resemblance of intelligence have partied ways long time ago.

Remember the 2008 crash?
Remember when oil went negative?

Just because some third world country made a desperate move and made it legal tender does not mean that it now magically has some value. The only reason bitcoin has any value at all is because there's always a sucker willing to pay even more for it. The only way you can make money from bitcoin is by finding an even bigger sucker than yourself, exactly like a ponzi scheme.

Circular arguments are not logically sound. You're assuming it's a desperate move rather than a smart one. You're assuming it's a ponzi scheme to conclude it's a ponzi scheme.

Just because you don't understand it doesn't mean it has no value.

 

[DZillaXx]

Just because some third world country made a desperate move and made it legal tender does not mean that it now magically has some value. The only reason bitcoin has any value at all is because there's always a sucker willing to pay even more for it. The only way you can make money from bitcoin is by finding an even bigger sucker than yourself, exactly like a ponzi scheme.

That's actually how anything in this world has value.

A video card for example is worthless unless you have someone willing to pay for it.

Anything is only worth what someone else is willing to pay for it.

Same goes for the US Dollar.

 

[bviktor]

Forget about Bitcoin and other PoW coins already. Use Stellar's XLM, USDC, or EURB. Those are actually useful as a currency.

https://twitter.com/i/web/status/1397871851817377792

 

[captaincranky]

That's actually how anything in this world has value.

A video card for example is worthless unless you have someone willing to pay for it.

Anything is only worth what someone else is willing to pay for it.

Same goes for the US Dollar.

Sadly, I don't have any spare US currency for sale, that I'm willing to allow you to refuse to buy

 

[captaincranky]

Remember the 2008 crash?
Remember when oil went negative?

Oil came right back though, as soon as people tried to start their cars. You're really reaching beyond absurdity when you start comparing commodities to vapor trails on someone's computer.

 

[terzaerian]

1 bitcoin could run their whole economy

1 Bitcoin going to 27 billion? I'll allow it.

 

[VitalyT]

Remember the 2008 crash?
Remember when oil went negative?

You are comparing something that happens once in a decade to something that happens several times a month, without much reason. Are you nuts?

 

[captaincranky]

You are comparing something that happens once in a decade to something that happens several times a month, without much reason. Are you nuts?

They may have to start listing "cryptomania, in the psychiatric DM-5

 

[terzaerian]

They may have to start listing "cryptomania, in the psychiatric DM-5

You know what, China has the right idea giving gamers electroshock therapy.

 

[Geralt]

And so it begins... Not bad for a so-called "Ponzi Scheme" right?

FYI it will be mined with geothermal energy near volcanoes.

Why don't you go to live to El Salvador then?

 

[captaincranky]

TESLA is profitable, but that doesn't mean they are not spread thin and are using debt to expand at a very rapid pace. The Credits massively help offset the monthly debt costs. The Company doesn't only make cars. They are trying to become one of the leading manufactures of Lithium Ion Batteries. Building up the infrastructure to do so isn't cheap.

Electricity that is produced by power plants that goes used isn't saved, and 90% of the time they just can't scale back. The power would have been wasted regardless if mining was going on or not. The only time mining hurts your neighbors is when there is a power shortage and the demand from crypto mining operations is too strong. More of an issue in 3rd world countries.

We don't store unused electricity, so actually smart use of crypto mining could be a very good thing. If it was managed correctly. Though investing in actual ways to store power, such as batteries or something like water pumped into reservoir, is by far better use of time and money.

Pretty much the only thing this drivel proves, is that the human brain has advanced enough to be able to brainwash itself.

 

[captaincranky]

You know what, China has the right idea giving gamers electroshock therapy.

I wonder if they'll treat miners to the same fate. But then we'll never know, will we?

 

[captaincranky]

1 Bitcoin going to 27 billion? I'll allow it.

Well, that would be nice for you but, it wouldn't be enough to collect the trash in any self respecting first world country.

You could though obviously, move to Guatemala, buy yourself an amazing villa and a private army..

 

[terzaerian]

I wonder if they'll treat miners to the same fate. But then we'll never know, will we?

Probably not, because rational economic activity isn't a mental illness, compared to the colossal entitlement and Dunning-Kreuger delusions of the average gamer.