The country that takes Bitcoin as a legal currency is difficult

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In June last year, at the 2021 Bitcoin conference held in Miami in the United States, Nayib Bukele, President of Central America, announced excitedly that the country would establish Bitcoin as a legal currency.

Self -claiming "the coolest dictator in the world"

Use the country's future chips to participate in a grand gambling

(Figure: Twitter) ▼

Because virtual currencies have always been known for high volatility and high risk. As soon as the news came out, the world was uproar. The World Bank and the International Monetary Fund have issued warnings to express concerns; Fitch International, one of the three major international credit rating agencies, reduced the country's rating to garbage level; Salvador's domestic riots against Bitcoin fiat currency frequency ...

Huahua currency is charming, there is no strength and less face

It is the bottom layer that has been suffering from suffering (Figure: One Photo Network) ▼

But these did not affect the interest of President Buckler's treasury speculation. On the Internet, he was enthusiastically sought after by cryptocurrency fanatics. As of now, Salvador spent a total of $ 107 million to buy 2,381 Bitcoin, while the country's per capita GDP per capita was only $ 4,400 last year.

For the huge Bitcoin, the people of the Salvado said they did not want to use

(But you ca n’t do the main picture: one picture network) ▼

In June of this year, the price of Bitcoin was diving. It has fallen below $ 23,000 for the first time since December 2020. The currency circles have sold their holdings, and even cut the meat. The Bitcoin held by Salvado has lost more than 50%and the loss amount exceeds $ 58 million.

However, Bakler didn't care about it and was still inhaled at low.

President's fried coin carnival

Salvador is located in Central America with an area of ​​21,000 square kilometers (60%of Hainan Island) and a population of 6.7 million (65%of Hainan Island). It is the smallest country in China. When it comes to Salvador, people think of violence and poverty.

This is the country with the highest crime rate in the world. On March 26 this year, 62 murders occurred within the same day, and more than 1 million gangsters.

Don't look at its small area, Mexico's gangsters have to lower it in front of it ▼

In 2001, the country's currency system collapsed, and the central bank no longer issued sovereign currency "Koran" and switched to the US dollar as a legal currency. At that time, a quarter of Salvado lived below the poor line, and he relied on his family to work overseas to maintain his livelihood with bank remittances. More than half of the population has no mobile phones and cannot access the Internet.

Overseas workers' remittances are one of the main sources of Salvador foreign exchange

It really avoids a lot of exchange trouble with the dollar

But also sacrificed a part of the national identity that "Koran" brought to the people

(Salvador Corag map: wiki) ▼

On September 7, 2021, President Buckler, regardless of the strong opposition from the domestic people, officially announced that Bitcoin became the legal currency of Salvador, and also launched the official digital wallet "Chivo" (Spanish "goat", which means "cool ").

After downloading and registering, the people will receive a Bitcoin worth $ 30. The president will personally teach you how to use it, and install thousands of ATMs that support Bitcoin transactions across the country.

The $ 30 welfare of the $ 30 is equivalent to the minimum salary of three days in the local area

(Figure: Casa PresidenCial/Twitter) ▼

It is not because of what Bitcoin foundation in this small American country, or how well this country is, but the intention of Bakler, the president who claims to be the "coolest dictator".

On the day of the announcement of fiat currency, Bakler took the lead in purchasing Bitcoin worth $ 10 million, and then added 10 times one after another. The current total value of more than $ 100 million. The maximum buying price was US $ 60,000/piece in October last year, and the minimum buying price was US $ 19,000 per year on July 1 this year.

Try all the gambling, always buy it all the time ...

(Bakler's investment report map: Twitter) ▼

Every time you buy it, Twitter will also tell people all over the world to earn enough attention. "Long wait, but it is worth it! We bought 420 pieces in Salvador!" "Just now, Salvador spent $ 15 million to buy 410 bitcoin, some people sell it cheaply!" A comment: "Well, miss the lowest price 7 minutes ago!"

Bitcoin seller: Thank you for being willing to buy my bitcoin

(Great injustice? Picture: Twitter) ▼

The reason for Buckler is the following points for the reason why it touts Bitcoin.

Overseas remittance is an important pillar of the Elvado economy, accounting for about 20%of its GDP. According to statistics, in 2021, 2.5 million people in the United States remitted nearly $ 6 billion to Salvador. Bakler believes that the use of P2P cryptocurrency remittances can save up to 30%of bank transfer fees. About 70%of Salvador's population does not have a bank account, so the use of digital wallet "Chivo" can improve the country's financial inclusiveness. Registered for a free gift for $ 30, allowing overseas family members to remit directly to your "Chivo" because of losing sovereign currency, the country's economy of Salvador is restrained by the US dollar, losing financial sovereignty, and difficulty in the country to adjust the economy. The use of Bitcoin as a legal currency can promote the decoustration of the national economy and the US dollar.

It's not easy to go out to work. If it can really save a handling fee

That's really good ▼ however, is Bitcoin really effective? Economists believe that even if the above goals are to be achieved, there is a better way, not to mention the bloody reality in front of it: According to a study by the American Development Bank and Microsoft in 2020, Salvador has only 45%of the population to access the Internet, exceeding 90, exceeding 90 %Of rural families do not have the Internet.

Bakler wields a big pen, and has a computer for elementary school students, and also provides free courses

Probably using Bitcoin to start with the doll, right?

(Figure: Twitter) ▼

A survey at Central American University shows that only 4.8%of the 1,281 respondents know what Bitcoin is and how to use it. More than 68%of respondents said they did not agree to use cryptocurrencies as legal currencies.

The "Chivo" wallet, which has spent huge sums of money, has also seriously turned over. A survey by the National Economic Research Agency showed that only 10%of users continued to use the program after spending $ 30 for $ 30.

Bitcoin ATM machine distribution is too small

The safety issues of Chivo wallets are endless such as real factors

Let the only small merchants who accept Bitcoin pay miserable

(Figure: One picture network) ▼

By 2022, there were almost no new customers downloaded. According to data from the Salvador Central Bank, in the first five months of this year, the use of "Chivo" for Bitcoin overseas remittances accounted for less than 2%.

This mighty Bitcoin reform has been very effective, far from Buckerler's vision, but he is still optimistic, a bitcoin utopia built by him is rising.

Bitcoin utopia

EL ZONTE, a small coastal community in southern Salvador, is known as the "Bitcoin Beach". It fully supports Bitcoin payment and is a pilot area for this reform. As large as air tickets, hotels, small as small as crafts, and fried corn carts can be paid with Bitcoin, attracting many overseas video bloggers to fly to sightseeing and recording videos.

First of all the test area, the heat is frying up

Implementing from the small and big one, the dream is full

But some merchants have given up because of this play.

("Pickup Vote" Figure: One Photo Network) ▼

Hearing such a description, most people may think that it is like Silicon Valley, and is a talent for high -end technology companies and proficient network technology everywhere. In fact, this stuffy and humid town is far from such a developed image. Most local residents live in the humble shacks and maintain their livelihoods with souvenir shops and street stalls. Only a few luxury hotels and restaurants near the coastline make it look more like a tourist city.

This bitcoin task was issued by the president

Who dare not follow? (Figure: One picture network) ▼

Despite the backward infrastructure, the iconic orange -yellow icon of Bitcoin can be seen everywhere. Even if you buy a bunch of cheap roasted corn, the merchant will ask: "Do you pay with dollars or Bitcoin?" The backward city appearance and advanced payment methods are in sharp contrast, attracting the attention of overseas audiences, and let Salvador Dorodo also allows Salvador This country knows more people.

Even the plastic trash bin on the roadside has been printed with Bitcoin logo

(Figure: shutterstock) ▼

EL ZONTE is only the original form of Bitcoin utopia for President Buckler. In November last year, he proposed to establish a "city of Bitcoin" next to the Kongchagua volcano in eastern Salvador.

The entire city will be built into the shape of Bitcoin. The center of the city will have a Bitcoin symbolic public square, and rely on "volcanic energy" to power the city and Bitcoin mine. The city's economy is built on Bitcoin. Residents living here do not have to pay taxes. Here it will become Bitcoin Duty Free Paradise and Virtual Currency World Financial Center, achieving zero pollution emissions.

Bakler announced on Twitter: "The plan is simple: As the world falls into chaos, we will create asylum for freedom."

Bakler is immersed in the dream of this golden "Bitcoin City" dream

I just don’t know how long this dream can do

(Figure: Twitter) ▼

In order to raise the establishment of this "Latin America's Singapore", Bakler also announced that it will issue the world's first sovereign blockchain bond- "volcanic bond", raising the amount of US $ 1 billion, half of which will be converted to Bitcoin. The other half is used for urban infrastructure construction and Bitcoin mining.

The bond is a 10 -year bond for dollars in the US dollar with a rate of 6.5%and a minimum of $ 100. The bond issuance has been delayed and has no exact news so far. The Salvador administration claims to be affected by the Russian and Ukraine War.

I do n’t know what kind of sparks can be collided with volcano and bitcoin

(Figure: Blockfi/Twitter) ▼

In the future, President Bakler also states that the establishment of a mine in the country will use "volcanic energy" mining. El Salvador has about 30 volcanoes, of which 20 are active and have rich geothermal energy. And referring to it as "volcanic energy", it can naturally attract more eyeballs, which shows that Bakler's marketing skills are deep.

At the end of September last year, Bakler posted a 25 -second video on Twitter, announcing the beginning of Salvador's use of land thermal energy mining, and geothermal energy was used as renewable energy sources, which greatly reduced carbon footprints produced by bitcoin mining. Three days later, Bakler exposed the results of mining and mining a total of 0.00599179 Bitcoin, or about $ 269. The volcano brings disasters to the people of the Salvado, but also brings opportunities for development

(Figure: One picture network) ▼

In addition, according to the World Bank research, Salvador's photovoltaic power generation potential is huge, which means that it has sufficient solar radiation. Studies have shown that Salvado also uses solar energy to provide energy for mining machines. Therefore, it is not difficult for Bakler to make Salvador into a "country of mine".

Buweng's meaning is not currency

Since Salvador announced the establishment of Bitcoin as a legal currency in September last year, President Bakler's network has made his best, but the people of the Salvador are miserable.

The poor recalled the night of the US dollar fiat currency in 2001. The people who were not scattered completely lost their purchasing power. This country also lost sovereign currency and fell into endless inflation.

This money, "slap", it's gone

(Figure: shutterstock) ▼

The International Monetary Fund warned that the use of cryptocurrencies as a legal currency for financial and market integrity, financial stability, and consumer protection constitute a serious risk. The rating agency Fitch pointed out that the use of Bitcoin will increase the regulatory risks of financial institutions, including the possibility of anti -money laundering monitoring and funding terrorism.

Chivo wallets launched by the Salvado government still have many technical problems

The road to defending rights is very difficult (Figure: one picture network) ▼

All of the above, coupled with more than 50 million US dollars of losses, Bakler was blindly ignored. There is only one explanation of such a crazy behavior that lost wisdom -maybe, he is simply "the drunkard is not wine."

Some economists sharply pointed out why the "volcanic bonds" built by Bitcoin cities are still issued and paid in US dollars in US dollars? The important fact hidden behind it is that Salvador is on the verge of bankruptcy, and the real purpose of issuing "volcanic bonds" is to dismantle the east wall and make up for the west wall.

In 2023, El Salvador will face billions of dollars in debt repayment. It is imminent that the $ 800 million European bonds expired in January, and due to credit rating, the current transaction price will be nearly 20%compared with its face value.

Rating agencies have been lowered Salvador's rating

It is currently considered to be a garbage bond ▼

Bakler's enthusiasm for Bitcoin makes the International Monetary Fund is unwilling to provide loans. Therefore, his grand narrative and detailed description of the "city of Bitcoin" was considered by economists to be a marketing method for fund -raising debts.

Before the announcement of the establishment of Bitcoin as a legal currency, there was no one in this Sino -American country. Now, it is titled "Bitcoin Kingdom" to become the first person to eat crabs. News reports have continued. Every time the president issued Twitter to announce the purchase of Bitcoin, it attracted a large number of media report analysis in the West and brushed the "sense of existence". This has never been before.

Not to mention, the limelight is giving him out

(Figure: One picture network) ▼

In this country that has long lost financial sovereignty, although Bitcoin's legalization is outrageous, it is also understood by the people supporting Bakler as a breakthrough attempt to fight against the US dollar hegemony and retrieve financial independence.

Thanks to his "sword walking forward", this smallest country in Central America can now have a place in the Latin American community, and even take the lead in holding the "Latin America Bitcoin Conference" to grab the frontier in the regional integration.

Following Salvador, the Chinese and African Republics have become the second country to eat crabs

There is a bunch of people who are watching

In May this year, 44 countries held talks at the "Bitcoin Beach"

(Most of them are relatively small: Twitter) ▼

According to government official estimates, since September last year, Salvador's tourism industry has increased by 30%, 60%of tourists from the United States. More and more foreigners want to see what is the "first country in the world with Bitcoin as the legal currency".

The ideal situation is that under the continuous bombing of hunger marketing, narrative, and magnificent concept map, cryptocurrency enthusiasts grabbed $ 1 billion of the "volcanic bonds", and Salvador successfully repaid the cost of repaying the debt crisis in 2023 , Escape bankruptcy.

The reality is that the price of the Salvador bond plummeted last year ▼

Bakler, who studied advertising and marketing, is well aware of the importance of seizing opportunities in the Internet era. Do not worry about not being a spectator. As the smallest country in China and the United States, which is weak, violent, and backward education, it is difficult to use the country's broken economic repayment of 1 billion debt. Only when it is unique and does not act in accordance with the rules, can there be a trace of possibility.

Perhaps for Bakler, no matter how bad this country is, it will not be worse today.

Reference materials:

1.https://www.nytimes.com/es/2022/07/05/espanol/bitcoin-e-salvador-bukele-lipto.html

2.https://wwwwwwwwwwwwers.com/article/elsalvador-bitcoin-dcakbn2ia0eh3.https: //www.france24.com/es/minuto-hinuto/20220701- bokele- aproVeCh%B3%B3— EL-BAJO-PRECIO-Y-COMPR%C3%B3-80-BITC%C3Inin-M%C3%A1S-PARA-SALVADOR

4.https://www.efe.com/efe/america/economia/el-salvador- compra-bitcoin-5-millones-dolares-anuncia-bukele/20000011-4842760

5.https://trends.ufm.edu/articulo/salvador-bitcoin- amor-wio/

6.https://www.dw.com/es/ola-de-violeencia-e-SALVADO or asesinatos/A-61296346

7.https://www.cnbc.com/2022/06/25/el-salvador-bitcoin-emperiment-naving-countrys.html

8.https://www.latimes.com/world-nation/story/2022-07-01/el-salvador-president-buys-more-bitcoin

9.https://newsrebeat.com/world-News/60069.html

10.https://www.france24.com/es/minuto-A-minuto/20211001- manifestaciones-en-e-salvador-de-bitcoin-pase-a-reTiro-Jueces

11.https://www.bbc.com/news/technology-58473260

12.https://restofworld.org/2022/el-salvador-bitcoin/

13.https://www.nytimes.com/2022/07/05/world/americas/el-salvador-bitcoin-national-currency.html

14.https://nayibtracker.com/

15.https://www.reuters.com/markets/us/what-we-know-far-about-El-SALCANO-POWERED-BOTCOIN-BOND-2021-11-22/

*The content of this article is provided for the author, which does not represent the position of the Earth Investment Bureau

Cover: shutterstock

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