why is El Salvador making BTC legal money? Is BCH better for them?
As the country with the highest murder rate in the world, the country that appears in web search contents, it appeared again with the news that it accepted bitcoin as legal money. so what's in the background? did Bukele choose the right coin or Bitcoin Cash BCH is more suitable for country dynamics?
1- One-third of the country is below the poverty line. The per capita income is less than $4,000. country ( less than 7 BCH )
2- One of the most important foreign exchange sources feeding its economy is the people of El Salvador living in the USA and other countries. it is a total of 6 billion dollars of money sent by people to their families in their countries every year is a lifeline for the economy. For those who say it's not that much, the GDP is around $25 billion. that is, this money makes up 20% of the income. President Nayip Bukele seeks to add these funds to the country's economy faster and with less commission. for example in California, a Salvadoran has to agree with banks and intermediary institutions to send money back to his country who gives significant commission to intermediary institutions, and this process is not fast either.
I agree about BTC transaction fee is cheaper than banks commission but BCH has a much lower fee and faster than BTC. BCH looks fit-to-job if compare with BTC.
3- Bukele thinks that it will pave the way for the volume of bitcoin to flow to the country. Bukele said that 70% of the country with a population of 6.5 million does not have a bank account and works informally. Unbanking can be a serious safety problem in high crime rate countries because of carrying cash requirements.
I agree about accepting coins as payment in shopping in that environment but BCH again overruns BTC for this with its advantage on fees, mempool, speed, and more. BTC fees in shopping can be not easy to afford in a country with a 4000 USD per capita GDP.
Bitcoin Cash BCH is more suitable for El Salvador.
Can you see what the government will do when BCH takes over?
Imagine what will happen to the economy of El Salvador once Bitcoin Core is taken over by another altcoin and it starts losing value, not to mention that Bitcoin goes up and down in price every so often so I guess they will just use USDT at the end of the day.