The country is the first to circulate Bitcoin, how is it? Foreign media say this

On September 7, 2021, a law came into effect in El Salvador, the Spanish newspaper Insurrection website recently reported that Bitcoin, like the US dollar, will become legal tender.

According to this law, all economic entities can use bitcoin for purchases and payments, and the prices of goods and services can be expressed in US dollars and bitcoins, and it was decided to enable an EXCHANGE wallet in China to allow users to buy bitcoins and use bitcoins. Make transactions and exchange bitcoins for dollars.

Two months after the law was implemented, the results are not very encouraging in terms of the cryptocurrency’s ability to contribute to El Salvador’s national economic and social development, the report said.

Although the government of El Salvador has encouraged the use of bitcoin through a platform called chivo wallet, the cryptocurrency’s popularity has remained limited. The wallet was created with public funds but managed by a private company owned by a group of investors.

Among the incentives offered by the El Salvador government for using the chivo wallet, everyone who downloads the app gets a $30 bonus. This measure did facilitate a large number of downloads, but most people did not trade in Bitcoin in order to withdraw the winnings.

On its own, the chivo wallet is a disappointment. Flaws in the app include delayed transfer records, loss of personal account funds records, and identity theft to create app accounts.

The government of El Salvador also created a Bitcoin mining center at a geothermal power plant, with disappointing results. In its first month of operation, the mining company managed to dig out an average of 0.00483976 bitcoins per day, equivalent to about 200 euros per day. Environmental groups in El Salvador have begun warning that increased mining capacity at geothermal power plants could raise the price of electricity for households and potentially increase the use of polluting energy sources.

Also, the most worrying event in El Salvador was the decision of the country’s President Nayib Bukele to buy Bitcoin in bulk when the market price fell. These purchases are made using public funds, without any type of public or private audit, and are made through a personal account directly managed by the President, who has a cryptographic key to access that account.

The use of cryptocurrencies represents the future of the capitalist monetary system. In this future, the monetary system will no longer be regulated by the state, but rather a market (supply and demand) dominated by the few owners of these currencies.

Currently, Bitcoin usage cannot be classified as a good versus bad dichotomy, but everything depends on what this cryptocurrency is for: speculation? Saving now, spending later? Used to hide criminal transactions? It all remains to be seen.

Under no circumstances should the use of any cryptocurrency be mandatory, much less imposed by government authorities. It should be an option taken alone, providing as much information as possible and fully assuming the risks and benefits.