Recently, the El Salvador President Nayib Bukele revealed a plan to propose a bill to make Bitcoin legal tender in the country – a bill that was passed through Congress with a majority vote. The move shocked not only the world of finance, but the world of politics as well.
It is the first nation to pledge such substantial support for the borderless cryptocurrency, which was designed as a replacement for the failing fiat monetary system. The reasons for El Salvador adopting Bitcoin make perfect sense, which we’ll explain in detail below. We’ll also look at how El Salvador is leading a new charge of global Bitcoin adoption, and how the domino effect could cause a dramatic change in the crypto market.
Bitcoin Conference Miami Reveals Global Adoption News
One of the highlights of early June was the Bitcoin conference in Miami, Florida. There, blockchain enthusiasts and crypto Twitter influencers gathered to do real life commentary and share their thoughts about developments in the industry.
Strike CEO Jack Mallers has recently done a lot for Bitcoin, from building up the Lightning Network, to sponsoring a Bitcoin-branded Indy Car in the Indy 500 recently. But his biggest contribution yet might be convincing El Salvador President Nayib Bukele to adopt Bitcoin, in which the nation’s infrastructure will in part be powered by Strike.
The announcement was made during the conference to cap off the event. Bukele’s push for Bitcoin as legal tender already has other countries now considering their own BTC adoption and how that might impact national law and internationally.
How BTC Acceptance In El Salvador Could Spread Globally
It is also a blessing coming at a time when Bitcoin sentiment is low due to environmental impact related concerns. The Bitcoin network consumes a lot of energy to operate, and depending on how that energy is generated it can have a negative carbon footprint that the likes of Elon Musk have shown concern about.
The global concerns over Bitcoin’s emissions prompted major changes in the crypto climate in China, forcing miners to leave the region as part of a widespread ban. Chinese miners who notoriously use coal and other fossil fuels to generate electricity also dominate the Bitcoin network, and their dispersal will lead to further decentralization which is in the end bullish.
El Salvador is planning to instead use 100% clean, volcano-generated energy to power BTC mining operations and help fund the government infrastructure and economy. By being more open to Bitcoin related businesses, it also could attract a blossoming industry and further boost the country’s GDP. When other countries see this, it could start a chain reaction.
Why Crypto Is The Way To Reduce Dependence On The Dollar
The benefits for any country are clear, but there’s also one extremely important factor that should push other nations, and not just small nations, to adopt Bitcoin next: the dollar. The United States dollar is the global reserve currency across the world, and each country is reliant upon it in some way.
Other major superpowers like China seek to reduce their dependence on the dollar, and are looking toward making their own digital currency. And that’s yet another reason for why other countries might want to consider Bitcoin.
Unlike the digital yuan and the eventual digital dollar, Bitcoin is borderless in the sense it is bound to no country or government. This gives smaller countries like El Salvador a fair chance at economic growth, rather than the world’s wealth being primarily centralized in the United States.
Why Buying Borderless Currency Could Be The Opportunity Of A Lifetime
By having no affiliation with any state or other actor, Bitcoin exists as the only form of fully trusted money in the world today, aside from gold. But gold is clunky to store, costly to move, and not made for the digital age. Which is why Bitcoin is replacing the gold standard slowly but surely.
Gold was once the preferred monetary peg across the entire world and back then, money worked the way it was supposed to. Today, stimulus is causing money to spiral out of control. And with more than 25% of the money supply created in the last year alone, Bitcoin’s 21 million supply instantly becomes a lot more valuable.
With only 21 million coins and a global population of 7.8 billion people, getting in on Bitcoin before the rest of the world could be the opportunity of a lifetime. Interested in Bitcoin? Buy Bitcoin or learn more at the source.
