So one of the big things in the Cryptocurrency world lately is how El Salvador has adopted bitcoin as a legal tender. Now while it is good that crypto is becoming more mainstream, bitcoin being adopted as a legal tender is not really the way to go for the future of crypto. Sure bitcoin is the more sexier name and brand but it is not the most effective. You could have used bitcoin cash if you wanted a more effective mass crypto for the people. After all, crypto is about giving freedom to the people and not power to the government.
Something like bitcoin cash would have been more effective for a legal tender for a country. Why?
Well according to whybitcoincash.com, bitcoin does not meet the market demands for instant payments as transactions can take quite a while to finish. Bitcoin can do 3 to 7 transactions per second while bitcoin cash can do over 100 transactions per second. If you have a nation doing a series of transactions even one as small as El Salvador, then you are going to experience a major slowdown as the network will be clogged up. If you want to show other countries that cryptocurrency is the way to go as a legal tender, then you got to show them something fast and easy. Something slow and clunky will just make them want to hold onto their dollars, their euros or what other paper currency a country is holding onto.
Crypto already has plenty of big enemies out there, why add fuel to the fire by showing a slow and possibly ineffective method. You really don't want a bunch of rich fatcats and countries telling you I told you as they continue to try to take down the cryptocurrency scene world. I definitely know that China would really want another excuse to crack down on crypto and tell everyone why they are wrong on the current cryptos out there. It is pretty baffling that El Salvador did not do more research on this matter and tried to find the best possible crypto to work for their economy.
People are not going to be turned on by the high fees of bitcoin as bitcoin can have a fee of $5 to $50 dollars per transactions while bitcoin cash on the other hand has a fee of under $0.01 per transaction. Most people that can use bitcoin in El Salvador are not rich people, they are really going to be turned off by the high fees. Why do a transactions if a good chunk of money might be lost upon the way. It is not efficient to keep on losing money in an exchange. If you're a business, what would be the advantage of using a bitcoin system if you are just going to be eaten up by fees?
It seems like the El Salvadorian bitcoin experiment might be more beneficial for the rich as the rich don't care about fees as long as they get a lot more in return. The rich can afford to pay some fees while the common man especially in a country like El Salvador can't really do that. The bitcoin in El Salvador must likely won't be an everyday thing but rather a gold that people will hang onto due to high fees and slow transaction times. Ideally, if you want to incorporate crypto into a mainstream society, it has to be an everyday thing and not just a gold like thing to hang onto because if that's the case, then it's for nobody but the rich and powerful.
Do you know about btc lighting network system where you can make btc transaction with less than 1 satoshi and this transaction speed will be like light speed so stop point out only transaction but point out something more details .