Recently updated on October 25th, 2022 at 11:00 am
Bitcoin has had a rough go over the past several months, but there are signs that the world’s first cryptocurrency is coming back. In April 2019, El Salvador became the first country to declare Holding Bitcoin legal tender in its national currency. This move has sparked renewed interest in other countries and regions around the globe: what does it mean for a nation to make bitcoin legal tender? Will this affect how you use bitcoin? And how will this impact the future of cryptocurrencies?
El Salvador is going all-in on bitcoin.
Table of Contents
According to the Central American nation’s president, El Salvador is the first country to make bitcoin trading platform legal tender.
- The Central American legislature made it illegal to change ten or more U.S. dollars into El Salvadoran colons or any other local currency on Sept. 21, 1982. A move that was meant to curb capital flight from the country during its civil war but has since become an issue of contention among locals who call it archaic and restrictive and claim their government could do more with their money.
- Bitcoin can now be traded as legal tender at par with fiat currencies such as dollars and euros. People who want to trade in bitcoins for cash can use online trading platforms such as bitcoin trading software. And would have to sell them at one of several exchanges located around El Salvador’s capital, San Salvador, or through online trading platforms.
El Salvador is the first country to make bitcoin legal tender.
El Salvador is the first country to make bitcoin legal tender. The Central American nation’s legislature passed a bill Tuesday that will allow citizens to use cryptocurrencies for goods and services, including paying taxes. The law comes into effect in six months.
Bitcoin is not a very secure currency.
You see, the problem with Bitcoin is that it’s not safe. The cryptocurrency has been compromised before and will likely be again in the future. And if you think that your bitcoins are safe because they’re stored on your computer, think again: hackers have targeted millions of computers around the world, from home PCs to major corporations and governments, stealing bitcoins worth $1 billion over time.
Bitcoin is also not secure for people who buy products using it. They can steal the currency from customers or retailers through phishing scams and fraud. That’s terrible news for people who want to use their money securely when buying goods online or paying taxes at a local store!
Plus, there’s no guarantee how much value your bitcoin will retain over time either it might lose value overnight due to wild swings in its price or technical problems like what happened during last year’s “hard fork.” This uncertainty makes Bitcoin an unreliable investment strategy. It means that it won’t hold its value long-term, as well as other types of investments, such as stocks or bonds, which tend to grow steadily over time while still being liquid enough, so they’re easy to sell off when needed without incurring big losses first.”
Will other countries follow El Salvador?
While it’s important to note that other factors are involved in whether or not countries choose to legalize Bitcoin as a valid tender, the news from El Salvador is a good indicator of how countries may respond.
Other than security concerns, one of the main reasons why some countries have been hesitant to adopt Bitcoin and other cryptocurrencies is because they consume too much energy. This was highlighted by Norway earlier this year when they announced plans to ban cryptocurrency mining from conserving energy resources. Due to similar concerns, the country also prohibited Bitcoin miners’ electricity on its national grid earlier this year.
Another issue here could be fees associated with transacting with crypto world. While fees had gone down significantly since their peak around December 2017, when prices were also high, transaction fees are still way higher than those charged by banks or credit card companies, which can sometimes be as high as $20 per transaction.
There are many reasons why El Salvador might be the first country to make bitcoin legal tender. It’s a bold move that could pave the way for other nations to follow suit and legitimise digital currency as an alternative form of payment. However, we shouldn’t forget that El Salvador has serious crime and corruption problems.