Bitcoin and the failure of El Salvador

[franky1]

their other issue was when promoting a new legal tender many citizens thought it was about stopping the utility of fiat in the area to be 100% crypto. which many citizens thought was an impedance to finance not a new extra option/freedom

again those first few months were hit with resistance due to bad promotions where people thought they were being forced to only use crypto in a manner that was not actually the true crypto they were mentioning.

How sure are you with both of these? You'd think someone that's actually from El Salvador knows that BTC was only an alternative, due to the fact that most people still pay with fiat money.

well yea now in hindsight after the events of last year people in el salvador knew that fiat was still used..

but...
check the news of last year(before/at the time) .. there were PROTESTS
so, read why they protested(not after the adoption, but before/at). they were protesting against bitcoin because they thought crypto was a compulsory REPLACEMENT legal tender not a second option extra legal tender. they were initially calling the president an authoritarian for implementing a change of legal tender which was unconstitutional.

translate: "wake up el salvador no to the dictatorship no to the reforms"
"total rejection of bitcoin

they feared not being able to continue using fiat
(once it was legal tender they realised they still used fiat.. where there then became other issues people experienced)


translate: "The Bitcoin bill must be repealed, it will bring more corruption and poverty"

within days of then using it. one protest reason stopped. and then the next one started.
it escalated to other things about the exchange rate losses as the international price of bitcoin dropped from $50k to $40k. also the problems with using the wallet where the bottlenecks were happening.
where they were saying the wallet was not fit for retail and couldnt cope with buying most popular stuff. etc etc

[mk4]

*snip*

Ah, I remember seeing these pics on Twitter. It seems like the protest only seemed to consist a really small number of (misinformed) people though. Probably the very small subset of people that doesn't read and that makes everything a conspiracy theory.

[MiF]

I think el-salvador has its own strategy and they know how to make a proper action on this bear market, they are smart and has a plan to buy when bear season so i think they are buying or holding, just remember that we will only loss if we sell at loss if bitcoin fall into 1$ per coin then we will not sell our holding we still not in loss because time will come that the price will back to bullish again and holders always earn in crypto.

[adzino]

El Salvador hasn't failed. You seem to be supporting bitcoin, but why did you have to set the title of this thread like that? You make it sound like bitcoin and El Salvador, both has failed. You are only spreading FUDs through your clickbait title.

I haven't kept myself updated with El Salvador, but as far as I know, they haven't sold any bitcoins yet. So they haven't lost anything. You are only going to lose if you are going to sell your coins!

[piebeyb]

when people sell their BTC to fiat currency then it will become a separate value it can be high or decrease in value, but actually what they don't realize is 1 BTC is 1 BTC and never changes, there is no need to determine a price value of 1 BTC with currency fiat money then it might be a panic in itself when the market is bear like this, so I don't think el salvador will fail they will benefit from holding their bitcoins, just need to wait 1 or 3 years from now

[minairia3]

El Salvador hasn't failed. You seem to be supporting bitcoin, but why did you have to set the title of this thread like that? You make it sound like bitcoin and El Salvador, both has failed. You are only spreading FUDs through your clickbait title.

I haven't kept myself updated with El Salvador, but as far as I know, they haven't sold any bitcoins yet. So they haven't lost anything. You are only going to lose if you are going to sell your coins!

I live in a country where bitcoin is banned and not legal yet, so I really admire countries that accept bitcoin and especially El Salvador that made bitcoin the first legal tender. I wish that one day my country or many countries around the world can follow El Salvador to bring bitcoin into mass adoption.

I am a supporter of El Salvador, I am quite annoyed that many people are laughing at El Salvador. Those people are even investing in bitcoin, they mock El Salvador as a terrible failure, but they don't know themselves they couldn't get better.

[Luzin]

I live in a country where bitcoin is banned and not legal yet, so I really admire countries that accept bitcoin and especially El Salvador that made bitcoin the first legal tender. I wish that one day my country or many countries around the world can follow El Salvador to bring bitcoin into mass adoption.

I am a supporter of El Salvador, I am quite annoyed that many people are laughing at El Salvador. Those people are even investing in bitcoin, they mock El Salvador as a terrible failure, but they don't know themselves they couldn't get better.

Many people think that way, but they never want to learn to understand. Indeed, so far Bitcoin is still restricted, even the IMF and the World Bank have banned it. But there is something special about Bitcoin that is difficult to explain and they don't understand.
Currently as a crypto trader I strongly support El Salvador using Bitcoin. Every country has the right to make its decisions. Although they got the consequences of the decision, they were prepared. That's a risk, but in the end if Elsalvador succeeds it will be a pilot project for other countries. I'm sure.

[Bobrox]

Not any failure when El Savador adopting bitcoin as legal currency transaction because as bitcoin investor or trader got their dreaming come true have country want to make bitcoin for legal currency transaction. How ever when El Savador announced bitcoin as legal currency transaction make bitcoin touched all time high price.

Could be different viewed and bitcoin price without announced by El Savadaor for legal currency transaction and bitcoin can't make new all time high price, although with nowadays bitcoin have drop drastically from all time high price always have chance for bitcoin back to higher price. El  Savador still have new thing how to make bitcoin back to higher price again for few months later.

[kryptqnick]

I agree with the op that we shouldn't call the case of El Salvador a failure. The price is down, but they luckily didn't invest a big amount of the government's funds into it (in terms of percentage from the total), so it's not catastrophic. Also, I am sure the price will be up again. As for adoption of Bitcoin as money, I've also seen reports that Bitcoin isn't particularly popular in El Salvador, even though it's legal tender, and that many just used their wallets once, to get the initial $30 worth of BTC. There's still time, and things can change. As long as Bitcoin adoption doesn't lead to major adverse effects, there's no reason not to adopt it.

[Dunamisx]

El Salvador hasn't failed. You seem to be supporting bitcoin, but why did you have to set the title of this thread like that? You make it sound like bitcoin and El Salvador, both has failed. You are only spreading FUDs through your clickbait title.

I haven't kept myself updated with El Salvador, but as far as I know, they haven't sold any bitcoins yet. So they haven't lost anything. You are only going to lose if you are going to sell your coins!

You just said the real fact regarding El-Savador which many failed to understand, in a country you can't expect to have a large number of people and be in a leadership position without having challenges from them because even the more you do in giving out to serve the people the more they begin to say negative things about your deeds, El-Savador knows what it's doing right now and its steps where not just an ordinary ones, it's well backed up with convictions and it holding capacity is not yet a thing of doubt or failure, that's what is meant to invest and take the risk forgetting about what others are saying.

[8rch7]

I don't agree if you say bitcoin and the failure of El Salvador, SE as if you claim that El Salvador failed to manage bitcoin and make bitcoin a legal currency in their country, for now bitcoin is in decline but we need to emphasize to all people falling in price is not a failure of El Salvador in adopting bitcoin, because in my personal opinion as long as bitcoin is still an investment and is still accepted by all people, it is not a failure it is just a price drop and one day the price of bitcoin will definitely go up again.

[AakZaki]

El Salvador accepting Bitcoin as legal tender isn't a failure, talking about price is the main reason of failure is a baseless opinion.

When Bitcoin become legal tender, it's mean it's used as a currency for daily spending. Not like other countries which accept Bitcoin as an underlying asset that mainly for investment or trading. El Salvador never failure to accept Bitcoin as legal tender, even the price decrease for 95% it can't be said as failure. It's failure when there's no citizens on El Salvador didn't ever use Bitcoin!

Those who say fail certainly do not understand how bitcoin works. if bitcoin is fully adopted of course bitcoin is still bitcoin, not based on value in fiat. El Salvador is a bolder country than any other country, even El Salvador, led by Nayib Bukele, will make Bitcoin City and become the center of bitcoin usage. this is even a great future bitcoin plan. El Salvador is one step ahead of any other country. Failure is only for those who don't believe in bitcoin and this adoption is still new and needs time for better development.

[passwordnow]

We should take it like this when the market is bullish and we've been on that for so long. These critics will tell that El Salvador did a genius idea and decision.
But when the market is bearish, we'll hear them say that El Salvador did a foolish thing of investing in bitcoin and now they're dropping in losses and only looking at that certain point. It's the same to us when somebody mocks us when our investments are falling due to the drop that we're having in the market. These people are only waiting for our failures but when we're on our peak of having profits, they're silent.

Yes, and I think the government of El Salvador has taken this into account already. So when we are in bearish state, they continue to accumulate as much as they can.

So let's see what their critiques will say when we goes into another bull run in 2024-2025. Perhaps they will hide again just like the rest of the anti-bitcoiners who went into hibernation when the market is rallying and come out of the rock when the bearish trend enters.

That's all I'm just waiting and that's going to be an inevitable situation for most. The bull run is going to be there again as much as they're critics during the bear market.
They're all just watching out when everyone is down with their portfolios but let's see how it's going to be when everyone is at gain or when the ones they're critical about is showing perfect gains when we're all in bullish market.

[Asiska02]

We always tell each other that 1BTC = 1BTC,
if you don't sell, you won't lose, why rush to conclude that they failed, when they haven't sold any Bitcoins yet?
It can be said that this country has never given up, they are still on the way to building their "Bitcoin City"

I've never once thought that El Salvador's move to adopt bitcoin will be unsuccessful. A very capable leader, Nayib Bukele has a bright future for his nation. He won't fail at this, in my opinion. I'm sure he foresaw the market's volatility before deciding to invest in bitcoin and is aware of how unstable it may be. If he hadn't been so determined, he would have sold all of his bitcoins when the market started to decline instead of buying more so he could benefit later. They will be among the richest nations and have plenty in their reserves if they can continue to stay up with the market. No matter how long it takes to reap the rewards, he is aware that 1BTC = 1BTC always.

[minairia3]

I'm sure he foresaw the market's volatility before deciding to invest in bitcoin and is aware of how unstable it may be. If he hadn't been so determined, he would have sold all of his bitcoins when the market started to decline instead of buying more so he could benefit later. They will be among the richest nations and have plenty in their reserves if they can continue to stay up with the market. No matter how long it takes to reap the rewards, he is aware that 1BTC = 1BTC always.

I also think like you. Even if we as retail investors can see bitcoin volatility as inevitable, there's no reason why a president and a team of advisers behind him shouldn't see it. This is not the first time bitcoin slump met, it has happened many times in the past so I am sure they are prepared for situations like this before deciding to invest in bitcoin.

As @kryptqnick mentioned, they only invest a small amount of government budget in bitcoin and even if bitcoin falls further it won't affect their economy too much.

[DoublerHunter]

We always tell each other that 1BTC = 1BTC,
if you don't sell, you won't lose, why rush to conclude that they failed, when they haven't sold any Bitcoins yet?
It can be said that this country has never given up, they are still on the way to building their "Bitcoin City"

I've never once thought that El Salvador's move to adopt bitcoin will be unsuccessful. A very capable leader, Nayib Bukele has a bright future for his nation. He won't fail at this, in my opinion. I'm sure he foresaw the market's volatility before deciding to invest in bitcoin and is aware of how unstable it may be. If he hadn't been so determined, he would have sold all of his bitcoins when the market started to decline instead of buying more so he could benefit later. They will be among the richest nations and have plenty in their reserves if they can continue to stay up with the market. No matter how long it takes to reap the rewards, he is aware that 1BTC = 1BTC always.

^ Definitely right.
I don't think there is a failure, El Salvador still owns their BTC, they even not selling it because they are afraid of further loss. Which is I think the president of that country probably knows to sell BTC and how potential is waiting ahead when the price becomes reached the new ATH.
There is no failure to me, instead, it is the start the country will benefit from the crypto market soon.

[KingsDen]

People saying that El Salvador has failed in their bitcoin adoption, it a depends on what their definition of failure is. As an individual, if I bought bitcoin when it was at $50k and hold till now, am I going to be called a failure? Definitely no, I could rather be called a strong hand or a die hard hodler.
Why is the case of a nation different?
I will only consider that El Salvador bitcoin agenda or adoption has failed when the country makes a public announcement that they have sold all their bitcoin. If they do so at bear, I will say they failed, but I am not certain if I will also say so when they sell on profit.

Apart from the financial profit which hasn't come yet, but which will inevitably come, El Salvador has gotten some kind of exposure in the world, they have become a country for tourists. I read somewhere in the forum that about 40+ countries would converge in El Salvador for a bitcoin conference. These are goodnews that bitcoin brought to the country. So El Salvador hasn't failed yet and their is a very little odd that they will fail.

[Republikcoin.com]

This is always true but does it help your or any entity if you can not hold your Bitcoin long enough to get profit?

No one is helped by that except the Bitcoin holder himself whose price is already greater than what he has ever bought in the market.

You don't know how long you will have to hold it to the profitable date so don't bet. El Salvador President bet that Bitcoin will rise in near future and his country is in serious debt crisis. This is his mistake and collapse can occur if his country has to sell all Bitcoin to get cash for paying debt interest or other reasons.

Not only me, but everyone else will also not know until they have to hold the Bitcoins they have for profit. So it's true that it's not forever in the long term, but when the price of Bitcoin decreases and becomes cheap in the market, Bitcoin almost very often takes a little longer to rise again to a higher price so the analogy for the long term is always more suitable though it is not known when the auspicious date will occur for sure.

However I disagree to anyone accuse El Salvador. They just made a history for Bitcoin and the world and we should appreciate that. Especially if the argument or accusation is from people (I don't say it is you) who got profit with the bull run of Bitcoin that is partially contributed by El Salvador legal tender news. They should say thank you to the President and El Salvadorians.

I also don't like any accusation if it's not based on clear evidence against it (El Salvador). But for me what El Salvador is doing is something that can influence other countries to take Bitcoin more seriously even though El Salvador is still experiencing losses at the moment because Bitcoin has not increased as much as El Salvador wanted.
But if El Salvador can survive the difficulties they are currently facing, then there is a possibility for El Salvador to succeed through their investment or through the adoption of Bitcoin that they have done.

[Slow death]

the government of el salvador does not need to buy a lot of bitcoin and force its people to buy bitcoin to say that they are in mass adoption, I believe that what the government of el salvador could do would be the following:

1 - pass a law that allows all people from el salvador to buy bitcoin, receive salaries in bitcoin, pay bills and tax with bitcoin

2 - pass laws that allow people to deduct a portion of their bitcoin for pension and life and health insurance

3 - pass a law that allows all people from el salvador to make payments and accept bitcoin payments

these laws would already guarantee mass adoption, the government would not need to be spending people's money and buying bitcoin to be showing off on social media

[pooya87]

It is wrong to call what El Salvador has an "investment" because they didn't buy bitcoin to sell it for profit. In other words even if bitcoin was $1 million today, they still wouldn't be selling what they'd bought.
The plan was to attract investments from others, obviously the government had to have some bitcoins of their own then attract foreign investors which is exactly whey they had such massive projects like that bitcoin city thing. An obvious tourist and foreign investor attraction, specially due to very low cost of living there.