During the 2021 Bitcoin conference held in Miami, there has been a number of important announcements, mostly positive. But the one that didn’t go unnoticed is the announcement from El Salvador’s president, Nayib Bukele, about the adoption of Bitcoin as legal tender.

This might sound like hype, irrelevant, or even untrue to some media, but it is not. The implications of this are huge and the ripple effects of this decision will be resonating for a long time.

This is history in the making.

Bitcoin has many enemies. It takes power away from governments and banks but they can’t just stay there and do nothing. The propaganda machine has been working since day one spreading all sorts of FUD, lies, and misinformation — the currency of criminals, tulip mania, the dirty coin, China’s currency, etc.

They’ve been trying to curtail this new asset class since the beginning but failed miserably. Not only is the price going up, but the adoption, the technology, and the network are also improving every day and getting stronger despite the attacks.

Most people are still afraid of dipping their toes in the water but many have already done so and this includes some financial companies, hedge funds, and now even whole countries.

Why is this important?

Most countries have a broken financial system, an ever devaluing currency, and no property rights. It’s difficult to imagine what it’s like to be a farmer in South Sudan where, on top of all the other problems, they have to do business in a currency that shrinks by 50% a year. Half your savings will be gone in 365 days, year after year after year.

Let that sink in.

What are the chances for this farmer to ever preserve some wealth so that his children can have a better future?

Z.E.R.O.

Bitcoin solves this.

Yes, there is corruption. Yes, it’s a poor country. Yes, the infrastructure is not there. Bitcoin won’t be able to solve every problem but it solves the biggest problem of all: the ability to store wealth in a secure, efficient, and censorship-proof way.

No more corrupt governments devaluing the currency to zero. No more middlemen taking away half your money. No more politicians confiscating what’s yours to finance their lavish lifestyles.

When you own Bitcoin, you have freedom and when you have freedom, you have power.

Third-world citizens rely on money sent by relatives by remittance. These companies take a big cut and the receiver often gets a mere 50 to 80% of the money.

This is a huge business that generates millions for Western Union, MoneyGram, and other financial giants but it’s coming to an end.

Nowadays a lot of people in Nigeria, the Philippines, Venezuela, and many other countries are sending money in bitcoin because it is safer, faster, and a lot cheaper.

Bitcoins make many families 50% wealthier.

There are 2 billion people in the world that are not allowed to open a bank account. There are also another 4 billion that are underbanked.

Not any more.

Who needs a bank when you can store monetary energy in your phone, use it to buy, sell and invest. No middlemen, no gatekeepers, and no discrimination. True democratic money from the blockchain to your pocket.

I guess banks don’t like this one bit.

El Salvador is one of the poorest countries in the world. Violence, crime, poverty, corruption, you name it. It’s a failed state.

But the reason for this is not that they are lazy, stupid, or evil, the reason is that they have a big colonial neighbor that has been treating the whole area as their playground. Governments and big companies have been meddling with their political and economical situation in order to extract as much as they can and not caring about the victims on the ground.

Years ago their economy was so bad that El Salvador had to get rid of its national currency completely and adopt the dollar in an attempt to survive.

Problem solved, right? Not quite. When you have to deal in a currency for which you have no control, you have to suffer the consequences of third-party decisions — CPI, interest rates, inflation, GDP, money supply, etc. It is better to use the dollar rather than a shit currency but not a lot.

Argentina tried a similar strategy with the dollarization of the economy and they failed miserably. The lesson here is: you can’t be dependent on a currency controlled by a central bank outside your jurisdiction.

So, how is Bitcoin different?

Bitcoin is predictable, anti-inflationary, not controlled by anyone but the market, and decentralized. Every day 900 new Bitcoins get minted, no more, no less and this allows governments to plan ahead without running a third-party risk.

Compare that to the FED printing 6 Trillion dollars this year alone.

What El Salvador has done is very brave, I take my hat off to president Bukele. It’s not without risk, for sure. This has never been tried before but really, can it be any worse than what they have?

We’ve had Fiat currencies for over a century now, they’ve worked well for a few countries for a short period, but mostly they have been a flop.

Now we are entering a world in which most countries will completely cancel their own failed currencies and adopt Bitcoin. This is a game-changer.

So far the world’s reserve currency has been imposed by violence — the British pound, the US dollar, and others before that. But Bitcoin has no army, it belongs to the people, not to mighty empires. Its decentralized nature makes it impossible to attack and it’s spreading like a virus (a good one, that is)

This is going to bring instability to the system and there will be some turmoil ahead. But the crisis was coming anyway due to irresponsible policies, overspending, overprinting, and corruption. If anything, Bitcoin is a safe haven that can serve as a lifeboat for the Titanic sinking.

I can see a world with no Fiat money, with a few countries creating Central Bank Digital Currencies (CBDCs) and the rest using Bitcoin. Two parallel worlds.

I’m not going to be using Orwellian CBDC’s so I’ll have to move to a free country. Does anybody know how to get a visa for El Salvador?

Interesting times ahead

When a bank, a country, or any player makes a move, if there is a small chance they’ll succeed, all the other players have to make the same exact move. Not doing so is extremely risky.

This is the reason why the US and Russia have nuclear weapons. If one does not, they are dead.

Now, after El Salvador has made the first move, many countries in a similar situation will do the same. Partly inspired by it, and partly in case they might succeed. From now on, expect a domino effect with governments all over the world making similar announcements.

And this is not only for sovereign states; cities, enterprises, hedge funds, and insurance companies will follow suit.

Bitcoin’s demand will shoot through the roof. Just saying.

We’ve just witnessed history in the making. A small, invisible country has done a very brave thing — to stop the tyranny of central banks and try to conduct their affairs in a more transparent, antifragile and decentralized manner.

Nothing will ever be the same, the genie is out of the bottle and won’t go back in again. Now we are in uncharted territory. This is scary but also exciting.

I don’t think it’s going to be worse than we have, certainly not for 80% of the world’s population anyway. We humans are not good at managing money. We are corrupt, inefficient, and greedy. Let’s get out of the way and let the algorithm do its work.

Bitcoin is freedom, don’t let anyone stop you from participating in this new ecosystem.

El Salvador is a free country now. Do you live in a free country?

Probably not.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://medium.com/geekculture/bitcoin-to-become-legal-tender-in-el-salvador-77261ee063d1?source=rss——-8—————–cryptocurrency