On September 7, 2021, El Salvador adopted BTC as legal money as a means of combating catastrophic inflation and the country’s deteriorating buying power. Over the previous four months, the country has actively accumulated 1,801 BTC, especially when the market underwent a shortfall in prices.
Since the time the government recognized Bitcoin as legal tender, their most recent purchase is the cheapest it’s ever been.
Following Bukele’s revelation, bitcoin’s value continued to fall, reaching a low of $35,422 before partially rebounding to $36,653.56 on Friday evening, down 46.72 percent from its November high of $68,789.63.
According to a new study from Crypto.com, the global crypto industry will have one billion users by the end of 2022, as more emerging economies follow El Salvador’s lead and accept BTC.
El Salvador and Bitcoin
El Salvador was the first country to recognize bitcoin as legal tender, creating bitcoin ATMs and encouraging businesses to accept it. Bukele later vowed to build a tax-free Bitcoin City on the Salvadoran coast, to accelerate citizenship for certain blockchain investors, and to build geothermal bitcoin mining facilities, potentially turning the Central American country into a global crypto mining hotspot.
Bukele, who goes by the nickname “CEO of El Salvador” on Twitter, said “It’s game over for FIAT” if the economy of the country improves by the adoption of bitcoin as a currency.
Several financial specialists have voiced concerns about El Salvador’s acceptance of Bitcoin. They emphasize that cryptocurrencies, such as Bitcoin, are extremely volatile, speculative assets with no physical backing, causing price volatility.
Despite the soaring uncertainties revolving around Bitcoin and other cryptocurrencies, one cannot be blind to the rising adoption and popularity of them among developing countries and curious individuals.