The national adoption of Bitcoin: Is your country next?
A country just proceeded with its national adoption of Bitcoin (BTC). El Salvador is the first one, but other countries may soon follow in its footsteps. Once they do, this would significantly change how we use money around the world.
We will start with a quick rundown about bitcoin to get everyone up to speed. Then, we will talk about El Salvador’s move to allow bitcoin as a legal tender. Later, we will discuss why some countries even consider adopting this new type of money.
Bitcoin was intended to bring a new financial system to the world. With the recent actions of El Salvador and other countries, this may soon become a reality! In response, you should see how it might affect life in your country.
What is bitcoin?
Before we talk about the national adoption of bitcoin, we have to discuss what it is. After all, it’s a major aspect of our topic. Despite its growing popularity, people still find it hard to understand.
Let’s discuss how it started. In January 2009, someone who goes by the pseudonym “Satoshi Nakamoto” released the concept for bitcoin, and it had a goal: decentralized finance.
It was made to create a payment system that didn’t rely on banks or governments. Instead, it was going to work via a network of computers owned by regular people.
The bitcoin network is also known as a blockchain. Those computers that are part of the network work as miners, and they confirm transactions made using BTC.
Each one is protected by encryption, and a miner can confirm one by figuring out a certain code. To do this, the miner will have to perform thousands of calculations per second!
The miners will race to be the first ones to figure out this code. Once a miner gets the “winning solution” first, a new block is added to the blockchain.
What’s more, the miner receives a block reward in the form of more bitcoins. This convinces people to mine in the bitcoin network and keep it running.
All these transactions appear in a public ledger. Everyone may view it, but it only shares limited details, and you will only see the BTC addresses and amounts involved.
El Salvador adopts bitcoin as legal tender.
On September 7, 2021, at 3 pm local time (21:00 GMT), El Salvador launched its national adoption of Bitcoin. Sadly, it was met with glitches, price drops, and protests.
- Bitcoin ATM problems – These machines were called Chivos, and they allowed US and BTC transfers. Sadly, they had issues that day. Many people waited in line, not knowing when the Chivo ATMs or their bitcoin app would run again.
- Bitcoin dip – BTC prices tend to move wildly. On September 6, Bukele tweeted that El Salvador bought 200 more bitcoins, which was worth $21 million. The next day, it fell to $17.8 million.
- Protests – Some El Salvadorans didn’t like President Nayib Bukele, and others didn’t like his Bitcoin Law. As a result, people took to the streets and expressed their disapproval.
Still, these setbacks didn’t stop El Salvador’s leader. He tweeted that the country bought 150 more BTC. He even “thanked” the International Monetary Fund for causing a price dip.
It appears the discount is ending 🥲
Thanks for the dip @IMFNews. We saved a million in printed paper.
El Salvador now holds 550 bitcoin.#BitcoinDay #BTC 🇸🇻
— Nayib Bukele 🇸🇻 (@nayibbukele) September 7, 2021
Why did the country adopt this cryptocurrency? Bukele suggested it would drive investments to his country. Also, it would help El Salvadorans get money from overseas.
Read More: Bitcoin ATMs Are Coming Near You!
This year, he started constructing bitcoin mining hubs that use geothermal energy, coming from El Salvador’s volcanoes. If it succeeds, it may produce bitcoin at lower costs.
Also, there’s proof that cryptos can help with foreign remittances. For example, SBI Remit launched its first remittance service in the Philippines that uses Ripple (XRP).
Will other countries adopt bitcoin soon?
El Salvador isn’t the only one that adopted BTC. Take Venezuela as an example. It ranks third in crypto adoption, and the country’s massive inflation brought this about.
Just how intense are these price hikes? Let’s say you earned $2,000 after working for the first half of the month. You might think you can cover the next two weeks with that money.
Imagine if the cost of everything soars up to 50% the following month. This means your $2,000 will only be able to buy $1,000 worth of goods and services.
This is how everyday life is for Venezuelans. They see BTC as a sign of hope for their finances. In turn, the country embraced this crypto coin.
Meanwhile, we might see another national adoption of bitcoin in Panama. Congressman Gabriel Silva introduced a bitcoin law similar to El Salvador’s.
Panamanian congressman Gabriel Silva has introduced a bill on crypto regulation to enable freedom to use cryptocurrencies like #Bitcoin and #Ether in Panama. https://t.co/jgsqbuM7Mh
— Cointelegraph (@Cointelegraph) September 7, 2021
Other countries have a different take on bitcoin laws. Ukraine and Paraguay will pass theirs soon. However, they focus on monitoring BTC, not adopting it.
Some are against cryptos, such as China. It was behind various crackdowns on BTC. Recently, its Hebei province went after crypto trading and mining.
They have valid reasons not to accept bitcoin, though, and others use it to commit crimes such as money laundering. Still, we can’t tell what’s next for crypto’s global trend.
Will you have a national adoption of bitcoin too?
After reading about these events, you might be thinking about your country. Perhaps it already joined the crypto trend. If not, you might be wondering if it will adopt BTC soon.
We can’t say for sure if crypto comes to your country. However, we’re confident that cryptos will change the world. If you look closely, it’s already doing it!
For example, Decentraland (MANA) is changing how people play video games. It even lets people invest in digital real estate! As we said, SBI Remit improves money transfers with crypto.
In response, you should learn more about cryptocurrency. The other crypto articles from Inquirer USA can help you start, and you’ll see the many ways it is used in various fields.
What’s more, you’ll realize bitcoin (BTC) isn’t alone! You have many other altcoins, such as Ethereum (ETH) and Bitcoin Cash (BCH).
Then, you may read more in-depth material about bitcoin. Start with its white paper. It explains how the bitcoin blockchain works in detail.
If you decide to buy bitcoins, plan carefully. Only use the money you’re willing to lose. Study your options. Make sure you know all about them before investing!
Also, choose a reputable crypto exchange. You will link it to your bank account after all. It comes with a nifty digital wallet, and you may access these platforms via smartphone apps too.
Each time 210,000 blocks are mined, a bitcoin halving occurs. It halves the bitcoins miners earn from 6.25 to 3.125 bitcoins per block. It might be a good idea to buy before then.
Some websites have countdowns for the next BTC halving. Click here to see the one from CoinMarketCap. Once it ticks down, bitcoin prices may go even higher.
Note that we do not intend to share investment advice. If you want to invest in cryptos, study them first. Make sure you have enough know-how and budget.
Learn more about the national adoption of bitcoin
Which countries allow Bitcoins legal tender?
At the time of writing, only El Salvador has accepted bitcoin for this purpose. However, some countries still have a lot of people using crypto. For example, many Venezuelans use it as a better way of buying stuff. Other countries like Panama may follow El Salvador’s example soon.
Is Bitcoin legal money?
Your use of crypto will depend on where you live. If you’re in El Salvador, you can use it to buy stuff freely. You might face tighter rules soon if you live in other places like Ukraine, and others simply do not allow cryptos, such as China.
Is now a good time to invest in bitcoin?
This asset is just starting to go mainstream worldwide, which means it still holds a lot of potential for growth and profit. Yet, you must be careful when investing. Know your chosen assets well, and only use the money you are willing to let go.