Today, McDonalds, Starbucks, Pizza Hut, and others accept bitcoin in El Salvador

Overnight said:
So basically, it's just Forex. Everything once again is just USD. BTC is being added in as a middleman.
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It depends if they choose to keep their money in bitcoin. If they choose to immediately convert to US $, then you are correct

If the Salvadoran chooses to keep the bitcoin, then it becomes a bank account and an investment account all-in-one
 
so scary ....

Imagine instead of holding USD, you are holding bitcoins in El Salvador.

And btc drops from 5 digits to 4 to 3 to 2 to 1

due to
massive electromagnetic radiation,
massive hacking,
or massive cryptocurrency supply ...
 
Pekelo said:
I want to see all those Salvadorians' faces who keep their saving in this super-duper legal tender when the next crash comes

Because you know it is coming eventually....
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The relatively recent massive rise, hype, mainstream pickup of crypto/digital currencies, all feels rather fake and evil.

Something will definitely, inevitably, crash or falter some time, and the masses will, as usual, get F'ed in their eyeballs and miniscule brains.
This incident, crash, will make 2008 look like child's play across the global scale. Or, I could be wrong. I don't claim or hope to be a Nostradamus.
 
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Pekelo said:
Sure it is. The base of the price is still the US dollar, BTC is just an in-betweener.

It would be NOT a gimmick if:

1. Had they used a real crypto, not an obsolete one. They would still have to be their issuer/primary miner.
2. They would give out salaries in that crypto, without fluctuation based on the current market value based on the US dollar.
3. Because of #2, it should be a stable coin, because you can't base an economy on a highly fluctuating asset.
4. The country should be in control of its own currency, or it should be tied to a fairly stable another currency. Again, unless it is a stable coin, it can not work. >>> gimmick

I want to see all those Salvadorians' faces who keep their saving in this super-duper legal tender when the next crash comes. Because you know it is coming eventually....
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I doubt EL Salvador politicians and residents have much trading experience.

to be a good politician, you must have trading experience.
 
maxinger said:
so scary ....

Imagine instead of holding USD, you are holding bitcoins in El Salvador.

And btc drops from 5 digits to 4 to 3 to 2 to 1

due to
massive electromagnetic radiation,
massive hacking,
or massive cryptocurrency supply ...
More...

Imagine instead of holding USD, you are holding bitcoins in El Salvador

And btc goes to:

$100K before eoy 2021,

$500K after the next halving in 2024,

$1M before the end of the decade (before end of 2029)

$100M by 2035


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According to Fidelity

 
johnarb said:
Imagine instead of holding USD, you are holding bitcoins in El Salvador

And btc goes to:

$100K before eoy 2021,

$500K after the next halving in 2024,

$1M before the end of the decade (before end of 2029)

$100M by 2035


72.png
72.png
72.png



According to Fidelity

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that is possible too.

Then El Salvador will become the world superpower.

I guess that is El Salvador's plan / dream
 
JSOP said:
Only with the transfer fee replaced by the inflationary cost of bitcoin so still not much more to spend on the local economy.
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transfer fees suck out millions of dollars from remittances sent back from U.S. Bitcoin is sent using a government wallet and converted to currency to use in El Salvador. There is no inflationary aspect because it is still a relative poor country.
 
johnarb said:
Imagine instead of holding USD, you are holding bitcoins in El Salvador

And btc goes to:

$100K before eoy 2021,

$500K after the next halving in 2024,

$1M before the end of the decade (before end of 2029)

$100M by 2035


72.png
72.png
72.png



According to Fidelity

More...

A couple of years ago, you and I got into serious discussions about this sort of thing. For example, what is a BTC worth compared to the USD. You were going on about it being a store of value. Like a bank vault or something. That was fine.

The conversation did not continue because I really don't understand how BTC is valued aside from it being valued against the USD.

We can work out the math on BTC being valued against another country's currency, because every country's value is based relative to another country's value.

Now that El Salvador is basing it's entire economy on the BTC, why is this new currency of El Salvador still being expressed in USD?

It is the same wolf in another sheep's clothing.

Without the USD, NO CURRENCY HAS VALUE! THERE IS NO COUNTRY ON THIS EARTH THAT DOES NOT COMPARE IT'S MONEY TO ANYTHING OTHER THAN USD FOR A BASELINE. Yes, this even includes exotic forex pairs like Zloty to Yen. Because Zlotys and Yen are compared to the USD.

Therefore, the BTC has no value unless compared to the USD, or compared to another country that compared it's currency to the USD.

Why is that? Hrmm.
 
Overnight said:
A couple of years ago, you and I got into serious discussions about this sort of thing. For example, what is a BTC worth compared to the USD. You were going on about it being a store of value. Like a bank vault or something. That was fine.

The conversation did not continue because I really don't understand how BTC is valued aside from it being valued against the USD.

We can work out the math on BTC being valued against another country's currency, because every country's value is based relative to another country's value.

Now that El Salvador is basing it's entire economy on the BTC, why is this new currency of El Salvador still being expressed in USD?

It is the same wolf in another sheep's clothing.

Without the USD, NO CURRENCY HAS VALUE! THERE IS NO COUNTRY ON THIS EARTH THAT DOES NOT COMPARE IT'S MONEY TO ANYTHING OTHER THAN USD FOR A BASELINE. Yes, this even includes exotic forex pairs like Zloty to Yen. Because Zlotys and Yen are compared to the USD.

Therefore, the BTC has no value unless compared to the USD, or compared to another country that compared it's currency to the USD.

Why is that? Hrmm.
More...

"Without the USD, NO CURRENCY HAS VALUE! THERE IS NO COUNTRY ON THIS EARTH THAT DOES NOT COMPARE IT'S MONEY TO ANYTHING OTHER THAN USD FOR A BASELINE. Yes, this even includes exotic forex pairs like Zloty to Yen. Because Zlotys and Yen are compared to the USD."

The USD is the global reserve currency

There are concepts that are being mixed, value of USD vs goods and services which goes down over time

The value of hard money bitcoin vs goods and services over time
The value of hard money bitcoin vs USD over time

I'm not an expert on Keynesian economics and Austrian economics and monetary policies throughout history, high time preference vs low time preference

Please read the 1st 7 chapters of the book "The Bitcoin Standard" by Saifedean Ammous

I've finished the book. Then we can discuss here on the points made in the book?
 
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