Finance and Law

How El Salvador Is Paving the Future for Bitcoin?

Recently, El Salvador became the first country to officially recognize Bitcoin as a legal tender. This is a massive development for the said cryptocurrency because up until a few years ago, experts were stating that even though Bitcoin has tons of advantages over other payment methods, it will never become a legal tender as they are opposing governments and banks.

The reason why El Salvador decided to legalize Bitcoin is that this country does not have an official currency. The president of this county, NayijBukele, sent a notion to El Salvador’s Congress to legalize Bitcoin so that Salvadorans who are living abroad can send money to their friends and family back home without having to pay a lot of money in fees. Congress passed the law with 62 out of 84 voting in favour of legalizing Bitcoin.

This was a massive development in the crypto world, which is why we wanted to share a few words on who El Salvador is paving the future for Bitcoin. Let’s check the details.

Adults get Free Trading Money

After the law was passed and El Salvador officially legalized Bitcoin, adults in the country gained free $30 for trading with Bitcoin. That is a very important development as it brings more users to Bitcoin’s network, which will ultimately lead to better stability and a better value.

Remember, the more users Bitcoin has, the more stable its network becomes. The more stable the network is, the more valuable Bitcoin becomes. That is the reason why whenever companies, especially global brands like Tesla, show interest in Bitcoin, its value always goes up. After El Salvador legalized Bitcoin, its value rose by 6% in just a couple of days. As for Tesla’s investment, it went up more than $4,000 in less than a week.

Highly Developed Trading Sites

With the legalization, reputable trading sites such as BitcoinProfit.org will gain far more registered users and will be able to better their services. Not only that, but the overall number of trading sites is also likely to increase.

Since a majority of crypto users globally use Bitcoin, these trading sites will likely tailor their services to Bitcoin. Now, that doesn’t mean that they won’t accept other cryptocurrencies, but the main focus will undoubtedly be on Bitcoin. That is why trading with Bitcoin will become far easier and more profitable.

Many Countries Can Follow Suit

Up until this moment, even though Bitcoin is superior to regular payment methods, many governments opposed it because Bitcoin is highly decentralized and cannot be controlled by banks or authorities. That is why most of the countries were afraid of it. We are all familiar with the fact that authorities are not fond of things that they cannot control, which is not hard to figure out why they cast Bitcoin out.

But, if El Salvador’s recent developments prove to be good for the economy, that could be a massive game-changer. Many countries from around the world will likely become open to legalizing Bitcoin and regulating it.

After all, many benefits come by legalizing Bitcoin and allowing people to safely trade with it with two of the biggest ones being security and efficient transactions.

The One Thing that May Be A Problem

If Bitcoin becomes legal in the future, there would be just one problem – not a lot of people would have access to it. That is because when Bitcoin was created, it was limited to 21 million units. By 2032, 99% of them will be mined. Hence, Bitcoin might become even more valuable, which means that the chances of rich people acquiring a majority of these assets are high. That is why Bitcoin’s blockchain network would require changes and modifications.

Hardik Patel

Hardik Patel is a Digital Marketing Consultant and professional Blogger. He has 12+ years experience in SEO, SMO, SEM, Online reputation management, Affiliated Marketing and Content Marketing.

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