El Salvador, the failed Bitcoin experience

Pekelo

Pekelo

Remember when cryptobros were jizzing all over themselves because prez Bukele announced "the great experience" and made bitcoin a legal tender in his country? I also liked the idea, because it is better to fuck a small country first, before we try it in a big country. Well, let's take a look how the experience has been going:

https://www.reddit.com/media?url=https://i.redd.it/elp5ahju1vmb1.jpg

media
 
Pekelo said:
Remember when cryptobros were jizzing all over themselves because prez Bukele announced "the great experience" and made bitcoin a legal tender in his country? I also liked the idea, because it is better to fuck a small country first, before we try it in a big country. Well, let's take a look how the experience has been going:

https://www.reddit.com/media?url=https://i.redd.it/elp5ahju1vmb1.jpg

media
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So all that happened that matters is that people got a free $30 handed to them, which they transferred with Western Union and the like.

Fascinating.

Maybe they should try it with a bigger country? How about Canada?
 
Canada already has a Bitcoin machine at every street corner. The problem is, when Trudeau doesn't like you criticizing him or his policies, he can (and does) invoke 'emergency measure acts' and force the off-ramps from honouring any movement.

Now Europe wants to do the same. We are copying China's socialist/communist dystopia. Not a single person wants the government to control their finances, but they stand by and allow them to get away with it.
 
Things would be very different if El Salvador were to focus on trading and not investing in BTC.
 
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Bitcoin has failed in El Salvador because they are in good terms with the IMF now.

They started using shitcoins because they couldn't get a loan from the IMF. Bukele started applying all recommendations that came from the IMF to reduce the deficit and Bitcoin was never involved, they even label it in the report as a risk.

It was all a tantrum because they couldn't get money from anywhere else. Now that they are starting to be pals again, they don't need any crypto. It is funny how real finance works at country levels.

https://www.imf.org/en/News/Article...ding-statement-of-the-2023-article-iv-mission
 
GlobalMacro90 said:
Way way way too early to say if this experiment was a success or not.
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I agree; Too early.

I see seveal headwinds though;
US dollar is the official currency. You lose to inflation but it's a fairly stable currency and until that changes there is little need for Bitcoin.
The population is relatively poor and only about 35% own smartphones or have access to internet.
The volitility of Bitcoin makes it difficult to use as a medium of exchange or a store of value in the short term.
One thing they are doing that others don't seem to be doing is educating the population on how to use it. Apparently it's being taught in the school system.
Bitcoin city is drawing tourists and helping the ecomony.
Who knows maybe it will work out.
 
Yes, totally definitely not saying it is a success. I’m just saying it’s way too early to know at this point.

All of those headwinds are definitely challenges especially the price volatility. I would say though fast forward five years. If, and I admit this is a big IF, but if bitcoin continues it’s historical price appreciation and is several times higher in value at that point, and the dollar has naturally depreciated because of inflation in that time, people might change their tune. time will tell.
 
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