The El-Salvador Experiment

[kotajikikox]

Does this mean btc can’t become money, or that the world just wasn’t ready?

Whatever happened in 2021 with El Salvador isn’t proof or indication that bitcoin can never be used as money. However it should also be noted that the world simply wasn’t at that stage. Since not much else was using bitcoin for daily transactions, those in El Salvador won’t either. And for a developing country, they will always prefer USD because it’s what they know.

Is the fault in btc, or the timing, infrastructure, and policy execution?

I believe the policy execution was what went wrong. They forced bitcoin upon the citizens without the citizens fully knowing or understanding what it was making a gap between the people and the citizens. But almost 5 years later, I believe people are a lot more aware now.

[free-bit.co.in]

Does this mean btc can’t become money, or that the world just wasn’t ready?

Whatever happened in 2021 with El Salvador isn’t proof or indication that bitcoin can never be used as money. However it should also be noted that the world simply wasn’t at that stage. Since not much else was using bitcoin for daily transactions, those in El Salvador won’t either. And for a developing country, they will always prefer USD because it’s what they know.

Is the fault in btc, or the timing, infrastructure, and policy execution?

I believe the policy execution was what went wrong. They forced bitcoin upon the citizens without the citizens fully knowing or understanding what it was making a gap between the people and the citizens. But almost 5 years later, I believe people are a lot more aware now.

Part of the blame lies with the government of El Salvador for implementing the wrong policies, but we cannot deny bitcoin is really not suitable for use as an everyday currency.

People in El Salvador do not use bitcoin not only because of ignorance but also because of its volatility. Or transaction fees and speed are also barriers that make people less interested in Bitcoin. Let's say you buy everyday essentials for just a few dollars or pay small bills. Are you happy to spend extra money to pay an extra $0.50-$1 per transaction (fee)?

El Salvador’s experiment has shown using Bitcoin as a daily currency comes with many problems and is not truly suitable.

[SquirrelJulietGarden]

Part of the blame lies with the government of El Salvador for implementing the wrong policies, but we cannot deny bitcoin is really not suitable for use as an everyday currency.

People in El Salvador do not use bitcoin not only because of ignorance but also because of its volatility. Or transaction fees and speed are also barriers that make people less interested in Bitcoin. Let's say you buy everyday essentials for just a few dollars or pay small bills. Are you happy to spend extra money to pay an extra $0.50-$1 per transaction (fee)?

El Salvador’s experiment has shown using Bitcoin as a daily currency comes with many problems and is not truly suitable.

They bravely did something, took action and it's a first Bitcoin legal tender experiment ever in Bitcoin history. Let's appreciate their effort for this, and it is truly a milestone in Bitcoin history. The first nation does it has big challenge but it is a foundation for some other nations doing it in the future, learning from El Salvador and making something better than that.

Bitcoin transaction fee in 2025 is much cheaper than previous years or a latest year in 2024. With Bitcoin side chain developments and more technical upgrades, I believe that transaction fee issue will be resolved in the future.

It's important to say that Bitcoin blockchain is a most secure blockchain and if you pay a little bit more fee compares to altcoin blockchain fees, I think it is worthy to spend for security of your transaction, fund and your trade too.
http://howmanyconfs.com/

[Helena Yu]

Bitcoin can become a currency, but it's not the most preferred currency for most people.

Using Bitcoin will not boost profit from the seller and the customer, unlike fiat the government can print more money and they don't find to give discount/additional interest to attract people to think it's cheaper/profitable.

That's why, even though someday many people are familiar with lightning network, I doubt they will use Bitcoin as currency.

[PrivacyG]

What El Salvador did was of course a big risk to their Economy particularly because they were the first country to adopt Bitcoin this way.  But let us all be serious for a moment.  Bitcoin is generally NOT used as a Currency by most of the Bitcoin owners and Bitcoin owners are not too many.  This means if any body expected Bitcoin to become largely used in El Salvador, they were expecting too much.

I did not have this expectation and I was curious to see how the experiment will work.  But one more thing to be expected was that people will immediately exit Bitcoin as soon as it shows any sign of NEGATIVE volatility.  If many of us Bitcoiners STILL struggle to sit still on the Market during bad years or months, I had no expectation for people completely new to Bitcoin to act better than us.

Does this mean Bitcoin has failed.  In my opinion no.

Bitcoin will in my opinion shine exactly when Economy becomes weak.  When Stocks and non safe haven Assets start dropping to the ground day after day, the volatility of Bitcoin will be nothing.  But it will probably and hopefully continue to protect against inflation.

The truth is.  These are all only experiments.  Bitcoin is still a baby when it comes to its experience in the real world.  It still has a lot of tests to go through.  Only time can tell if it can do what it is supposed and expected to do.  Which is not to protect us from volatility but to be a reliable Asset in the face of this evil Fiat.

[fuguebtc]

The world just wasn't ready for Bitcoin as digital cash. El Salvador acted too early and failed miserably as a result. With mainstream media labeling Bitcoin the "next Digital Gold", most people will hoard it with the hopes of getting rich in the future. Besides, volatility and scaling issues are still at large. Bitcoin can't be used for micropayments because of the "high market prices" and often congested Blockchain network (which results in high fees). The Lightning Network is not even a viable solution at the moment. It's buggy and utterly-centralized.

At least, El Salvador tried to boost mainstream adoption for Bitcoin. Maybe someday, BTC will be used as a currency. Sometime within the distant future. Bitcoin often comes with its surprises, so anything's possible.

Is the world not ready, or is bitcoin not ready and not really suitable to be a currency, even though that was its original purpose? Because as you said, bitcoin is quite volatile and scalability is not yet solved. Meanwhile, the criteria for payment methods or currencies used on a daily basis are fast, free and stable. It is clear that with the current state of bitcoin, it is no longer suitable for use as a currency, especially for small daily value payments.

Many blame the government of El Salvador for acting hastily and lacking strategy, planning. But in my opinion, the reason why people in El Salvador are not interested in bitcoin as a payment method is because of bitcoin's problems.

[free-bit.co.in]

Bitcoin transaction fee in 2025 is much cheaper than previous years or a latest year in 2024. With Bitcoin side chain developments and more technical upgrades, I believe that transaction fee issue will be resolved in the future.

Transaction fees in 2025 are cheaper than in 2024 because there are not many transactions being done on the blockchain. Just think what would happen if BRC20 or RUNE was revived or something similar were created?

The fee problem is only solved sustainably when blocks are expanded but this will affect the security of the network. That's why it's still delayed and doesn't get much consensus from the community.

It's important to say that Bitcoin blockchain is a most secure blockchain and if you pay a little bit more fee compares to altcoin blockchain fees, I think it is worthy to spend for security of your transaction, fund and your trade too.
http://howmanyconfs.com/

When you buy 1kg of tomatoes, a loaf of bread or a cup of coffee for just 1-2 dollars, what do you need security or privacy for? Obviously that is not necessary. Instead, paying extra fees for each transaction is a waste.