"No Al Bitcoin" protest in El Salvador

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Avatar for nomadghada
3 years ago

People are protesting against the Bitcoin law

The Bitcoin law that made Bitcoin (BTC) a legal tender in El Salvador went into effect yesterday September 7th

The protest is about the price volatility and the loss of value from recent flash crash.

The concerns are not baseless but can be mitigated by the government,

The government should assure the people and come with a framework that protect the people. Specially since large portion of people rely on USD remittance

Crypto is the future but the road forward doesn't have to be harsh.

Price volatility of Crypto

On of the biggest problem with Crypto that is preventing it from going mainstream is the price volatility.

You can't use something as a medium of exchange regularly if a price keeps going up and down rapidly.

Imagine your morning coffee cost you $0.20 one day then $100 the next and $15 the other day.

As long as it the volatility is within a reasonable spread it can be worthwhile.

Government policy

Government should assure the people about maintaining the purchasing power of their hard earn cash.

Most of the money that people's household income is from their family members working overseas.

If the price of BTC rise then they will receive less BTC and if the prices in BTC remain same they won't be able to buy the same amount of daily times.

This risk is also their in fiat forex but the volatility isn't as much as that in Crypto.

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3 years ago

Comments

I think we will see more governments adopting crypto in the future but the execution of it in El Salvador was so poorly executed and so poorly communicated to the public its understandable they don't feel as they can support it. For people not invested in Bitcoin who don't know that much about it of course its going to feel like you are gambling away their retirement on an internet casino. Lets hope for the people of El Salvador things will turn around with the BTC price.

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3 years ago

Indeed, the BTC move is a good step but something like this needs to be done in manner that it doesn't burden the people with right policy.

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3 years ago

What is local currency of your country? Does you accept Btc as a payment?

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3 years ago