Undeniably, cryptocurrencies are the optimistic future of our world. However, no one expected a massive step at the evolution stage of cryptocurrencies. On the contrary, Bitcoin is the utmost promising and gigantic cryptocurrency.
Ethereum confers bitcoin in the list of leading cryptocurrencies in terms of market cap and store value. Ethereum is a blockchain-based model having ether as a token. The market cap of ether is not even half as of bitcoin. Bitcoin was merely popular as an investment asset across the globe. If you want to get profitable results in your bitcoin trading venture, check bitcointrader2.com for more details. There are still many investors, traders, and multinational companies who are making huge profits from bitcoin.
Recently one of the leading public holders of bitcoin, micro strategy, has invested a considerable amount in bitcoin again. However, El Salvador highlighted the essence of bitcoin as a payment method by accepting bitcoin as a legal tender in the country. Thus, El Salvador is the first-ever cryptocurrency to accept bitcoin as a legal currency.
Undeniably the government authorities did not force anyone to use bitcoin as a payment method. Still, half a million population is using their bitcoin wallet. Below is everything you should know about the acceptance of bitcoin as a legal tender in El Salvador.
El Salvador, the First-Ever Country to Accept Bitcoin as a Legal Tender!
Undeniably bitcoin is a potential currency, but no one expected such a step from any country this early. The prominent reason behind this fact is that bitcoin is still very volatile. The volatility of bitcoin makes it a less deserving candidate to become a national legal currency.
However, El Salvador recently announced to accept bitcoin as a legal tender. Here are some of the main reasons El Salvador decided to adopt bitcoin as a legal tender; let’s look.
Remittance Reliance- Remittance refers to the amount of money that Salvadorans send to their family from other countries, especially the United States. The fact might stun you that amount of Remittance in El Salvador reached a value of $6 billion. You are familiar with the fact that federal banks levy a massive transaction cost for international transactions.
Salvadorans annually pay a huge buck just as transaction fees. However, bitcoin does not confer the rules and regulations of any federal banks and government authorities. Bitcoin wallets and trustable exchange levies significantly less amount transaction fees. All the more bitcoin transaction does not incur banking fees.
Economy Hike- Bitcoin mining plants present in El Salvador will probably use the geothermal energy from volcanos. You are familiar that geothermal energy is very cheap as another energy source.
If the country succeeds in using geothermal energy for the bitcoin mining progression, several companies from different countries will invest in mining plants. If companies from other countries invest in El Salvador, it will autonomously hike the economy of El Salvador.
Employment- The adoption of bitcoin as a legal tender is correspondingly increasing the economy of El Salvador. All the more, bitcoin mining plants are correspondingly employing the population of El Salvador.
Half a Million People Are Using Chivo Wallet
The higher authorities have created their specialized wallet. Chivo wallet is the specialized bitcoin wallet for Salvadorans. Recently the higher authorities created a budget of almost $75 billion to distribute amongst the population. Whenever a Salvadoran sign up in the Chivo bitcoin wallet for the first time, that individual will acquire a signup bonus of $30.
Nayib, the president of El Salvador, has stated that tech-heads have resolved most of the issues related to Chivo. With the passing days, the number of people using Chivo Wallet is constantly increasing. All the more several businesses have already started to accept bitcoin as a payment method. According to the higher authorities of El Salvador, bitcoin will create ample opportunities for the population.
However, several economists are concerned about the volatility rate unpredictability of bitcoin. Addressing this issue, the El Salvador government has stated that government authorities will put the best foot forward to provide you maximum liquidity.
The proton, as mentioned above, is everything you should know about the acceptance of bitcoin in El Salvadoran.