El Salvador, without any doubt, is among the first countries to be able to explore the idea of making bitcoin a legal tender and then actually executing it. The support factor was next to nothing; neither the World Bank nor the IMF helped El Salvador to go with this transition; in fact, at some intervals, this crazy idea of El Salvador was laughed at.
But all of this couldn’t stop the country from making Bitcoin a legal tender. The orders were already given, and the implementation got completed only the other day, the world’s first country where a cryptocurrency is given the status of a legal tender among their own fiat money.
This recent transition has sparked many riots and rallies, and there is a storm of people out there who have come out against this transition, but at the same time, there are others who think that it is a valid project and that Bitcoin might be able to bring prosperity and consistency towards the country’s financial backbone.
El Salvador is now a Whale Investor
It can be said that government is ecstatic or even optimistic that it has made the right move and the future will bring only betterment to this project on the whole. Anyway, about the performance of Bitcoin, it has stumbled since it has taken the place of a legal tender within El Salvador. An analyst might hint that the price will be skyrocketing, or better yet, there might be a long bullish cycle accompanying bitcoin, but nothing of the sort has happened; it seems that Bitcoin has taken a step back, and it certainly has to do with this newly acquired status of the flagship cryptocurrency in El Salvador. Presently bitcoin is trading at $46.5K after being above the $50K range.
Anyway, El Salvador has not taken it to heart and is, in fact, buying the dip like the rest of the investing bodies, feels kind of strange from an economic or analytic point of view; a country buying its own currency after it has been depreciated. No one knows what the end game is here; either El Salvador is playing it on both ends or wants to make this project stick by investing into the very crypto that is the legal tender of the country.