Unless you’ve been living under a rock, you will have heard that on September 7th 2021, El Salvador became the first nation to adopt cryptocurrency – Bitcoin – as a legal tender. History has been made and Crypto only moves forward from here. There’s no going back.
Do you remember Bitcoin was only used as a payment for transactions on the deep web, or underground transactions? If you think I’m talking about Silk Road, yes, I’m talking about Silk Road. To the older generation, Bitcoin is just a silly fake internet money that will die out in a few years and has no real value. Imagine how they feel now.
What if I told you back in 2011 that one day a country will make Bitcoin an official currency? You’d think yeah it’s cool but that’s probably a bit of a reach. Now Bitcoin is slapping faces everywhere from every corner of the globe, being in almost every conversation relating to finances and investing.
History has been made
El Salvador’s president Nayib Bukele (legend) recently dropped the bomb that the government bought 200 Bitcoins before the implementation, and even bought the dip some more – now totally 550 Bitcoins. (LFG)
The government released an app called Chivo, which is a wallet application. They promise to deliver $30 worth of Bitcoin to all citizens to promote the use of the app.
Of course with every new technology, some will accept it wholeheartedly, and some will hate on it. We have to acknowledge that Bitcoin is still an infant and it’s still a confusing topic to those who are not regularly investing in Cryptocurrencies.
What this does
I’ve personally visited El Salvador once during my travel phase. Although it’s an amazing country, I would have never thought that it would become the first country to make Bitcoin a legal payment.
70% of Salvadorians do not have access to a bank account or use the banking system. By being able to use Bitcoin legally, this will bypass some of the stages of development a population would have to go through, giving them access to buying, holding, selling, and making transactions 24 hours a day, 7 days a week, 365 days a year – while at the same time making the banking process much more affordable to the average user.
Think of it like this; With a bank, you need to sign up, provide all your information and identification, fill out some forms, and sit in some room with an awkward woman with a pencil skirt on while she tries to sell you their most expensive savings account plan. Compare that with bitcoin, which you can buy and hold from you phone within 2-3 mins even if you have below average IQ.
Forget having to apply for credit cards (which by the way, Salvadorians statistically have good credit), wire transfers, making appointments with your banker, having to go to the teller to make a transaction. Forget all that nonsense.
Why does it matter?
El Salvador officializing bitcoin as a legal tender is a pretty big deal. Much, much bigger than you might imagine.
We’re not talking about a short-term pump or a quick green candle. This is a huge benefit long term for Bitcoin investors and pretty much any Crypto geek.
By making Bitcoin a legal tender, experts believe that this will create a domino effect – which can start happening right before our eyes. As one nation does it, more nations, especially neighbouring countries, will feel the pressure of including Bitcoin payments officially into their own economies.
El Salvador is the first domino.
From personal experience, I’m telling you from the bottom of my heart and soul, El Salvador is a beautiful place. It’s somewhere you’d like to live as an old rich man (or young man depending on where you like to go.) Amazing beaches, fair regulations, taxes are decent, and the people are friendly.
El Salvador will now have potential to become a choice for expats as a result of the Bitcoin implementation.
You know what I’m trying to say? There are no capital gains taxes on Bitcoin. Rich people like the words “no taxes.” I like those words myself.
I have no final thoughts. This is huge for all of us. Even the shitcoin investors. It’s only up from here boys and girls. What do you think? Do you think it’s ironic that a government is implementing Bitcoin as a legal tender? Or do you think it’s a sign of progress?