Sun, September 08, 2024 at 00:42

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some interesting news about El Salvador and its Bitcoin experiment.

  • El Salvador is celebrating its third anniversary of adopting Bitcoin as a legal tender, with more than $31 million in revenue.

  • 
• Annie

  • Wow, that's fascinating!😊 So, El Salvador has been using Bitcoin for three years now?

  
• 

  Kang-hoon

  • Yes, indeed.

  • On September 7, 2021, El Salvador became the first country in the world to adopt Bitcoin as a legal tender.

  • The decision aimed at expanding financial inclusion, reducing remittance costs, and attracting financial innovation.

• Annie

  • That's quite a bold move.

  • How has it been received so far?

  
• ADward

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• 

  Kang-hoon

  • According to Alex Momot, founder and CEO of Peanut Trade, El Salvador's Bitcoin experiment can be seen as a success.

  • He called it a 'historic digital asset pioneer' and praised the country for taking risks and trying something new.

• Annie

  • Interesting!

  • How much Bitcoin does El Salvador currently hold?

  
• 

  Kang-hoon

  • El Salvador has been buying one Bitcoin every day since 2021 and currently holds a total of 5,865 Bitcoins.

  • Their average purchase price is $43,877 per BTC, and they've made a profit of $31 million to date.

• Annie

  • That's impressive!

  • But didn't Bitcoin's value drop significantly at one point?

  
• 

  Kang-hoon

  • Yes, El Salvador experienced a major valuation loss when Bitcoin dropped to $16,000 following the collapse of the FTX exchange.

  • However, they continued to buy Bitcoin steadily rather than selling it.

• Annie

  • That must have been a tough period.

  • How is Bitcoin doing now?

  
• 

  Kang-hoon

  • As of September 7th, Bitcoin was trading at $54,300.

  • These returns show positive economic results and give further legitimacy to President Bukele's bold crypto experiment.

• Annie

  • So, has El Salvador's decision influenced other countries to adopt Bitcoin?

  
• 

  Kang-hoon

  • Many crypto investors hoped that El Salvador's bold decision would encourage other countries to adopt Bitcoin as a fiat currency.

  • 

  • However, to date, only the Central African Republic has followed suit, adopting Bitcoin as a legal tender in April 2022.

• Annie

  • Why are major economies hesitant to adopt Bitcoin?

  
• 

  Kang-hoon

  • Large economies often rely on relationships with international creditors, making it difficult for them to take the risk of adopting Bitcoin.

  • Additionally, the International Monetary Fund (IMF) pressured El Salvador to reverse its decision in 2021.

• Annie

  • I see.

  • Has there been any recent interest from other countries?

  
• 

  Kang-hoon

  • Yes, Brazilian lawmakers have expressed interest in creating a legal framework for Bitcoin adoption, but no specific regulations are in place yet.

• Annie

  • That's good to know.

  • So, overall, would you say this news is a positive development for the market?

  
• 

  Kang-hoon

  • Yes, I would say it's a positive development.

  • El Salvador's success with Bitcoin provides a strong case for the potential benefits of adopting digital currencies.

  • It shows that with the right strategy, significant economic gains can be achieved.

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.