El Salvador hopes to becomes the world’s first country to adopt bitcoin as legal tender
- Thread starter johnarb
- Start date
This is what happens when leaders (who have no clue about economics) of high inflation countries want to adopt BTC as national currency:
For the BTC fans: the red zone is the additional loss of buying power versus protecting thru USD. Roughly 35% loss in less than two months. That's over 10 years of inflation. During these two months these Venezolans had to buy necessary food, drinks, water, gas and electricity at continuous higher prices. They have no money to just wait a few months or even years till BTC recovers (if it recovers).
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His advisor for the bond issuing and other large scale debt structuring is the same one who worked for the Chavez regime, and also from a great corruption scandal in Paraguay. So you can do your math.
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So it turns out that in practice it costs an El Salvadorian 4X as much to repatriate funds using the Bitcoin as it did using existing means. Oh, and El Salvador's sovereign debt has dropped from being worth $.75 on the dollar to $.36 since this whole Bitcoin idiocy was announced (https://futurism.com/el-salvador-bitcoin-economy and https://fortune.com/2022/01/19/el-salvador-bitcoin-economy-distressed-debt/). And that's before we talk about the plight of the brave initial adopters who agreed to be paid in BTC back in Nov and now can buy 40% less with that paycheck than their peers who stayed with dollars. That experience is sure to drive future adoption!
Who could have guessed at any of this? Oh, yeah, it is almost exactly what many of us on this thread and others predicted over and over. @Daal, @Cuddles, the fan bois who couldn't handle anyone critiquing their precious crypto and blocked me....where are you all at guys? I know one place you aren't, in El Salvador actually having to live with the consequences of what you advocated for.
Who could have guessed at any of this? Oh, yeah, it is almost exactly what many of us on this thread and others predicted over and over. @Daal, @Cuddles, the fan bois who couldn't handle anyone critiquing their precious crypto and blocked me....where are you all at guys? I know one place you aren't, in El Salvador actually having to live with the consequences of what you advocated for.
