It has been exactly one year since this decision of El Salvador, which accepted Bitcoin as its official currency.
Declaring Bitcoin as the official currency, El Salvador broke new ground in this field.
El Salvador’s Acceptance of Bitcoin as Official Money is a First
While it is still being debated whether Bitcoin will be recognized by the states, El Salvador broke new ground last year and accepted Bitcoin as its official currency. With this event led by President Nayib Bukele, the public can use Bitcoin as well as the dollar, which they have used as their local currency for 20 years.
It was all about perspective, said Michael Peterson, founder of Bitcoin Beach, the circular Bitcoin economy that inspired El Salvador’s President Nayib Bukele to adopt Bitcoin nationally.
Peterson also said:
“It claims adoption of bitcoin payments is around 20 percent and cites that as a failure. If there were even 5% of businesses accepting BTC in a country outside of El Salvador, we would be very excited.”
Peterson also added:
“I think the level of adoption as a change agent is pretty extraordinary. That being said, people overestimate what can be done in a year and underestimate what can be done in 10 years. I think 10 years from now it will be hard to find someone who remembers your critique.”
President Bukele and El Salvador are still excited about the issue, although the serious decline of Bitcoin after this decision taken by El Salvador last year created a lack of confidence in the public.
Bitcoin Loses Confidence in Part of the Country
Maria Aguirre, a 52-year-old business owner who started accepting BTC after it became official in the coastal town of El Zonte, which is called a center for Bitcoin use, says that when they started accepting BTC last year, its value was $ 52,660, then it rose to $ 68 thousand, now it has done nothing but fall.
As another example, a university student, Carmen Majia, says that she used Bitcoin initially, but not Bitcoin due to the current situation.
Bukele’s Bitcoin City Idea
El Salvador’s president, Nayib Bukele, previously aimed to establish a Bitcoin city with the energy to be produced from a volcano near the country with an investment of 1 billion dollars. The severe drop in the price of Bitcoin resulted in the delay of this project.
According to the credit rating agency Moody’s; Bukele’s Bitcoin transactions cost El Salvador $375 million.
Despite this, Bukele did not lose his confidence in Bitcoin and announced that he bought 80 Bitcoins at $ 19,000 by taking advantage of the loss of value. Thus, the total amount of Bitcoin owned by El Salvador increased to 2,831. Continuing to argue that Bitcoin is a safe investment tool, Bukele told citizens in June that they should stop looking at the charts and be patient.
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