As a result of the worldwide spotlight being focused on El Salvador’s historical acceptance of Bitcoin, several important misconceptions have arisen that need to be dispelled. The acceptance of bitcoin as a legal currency in El Salvador drew a great deal of worldwide interest due to this decision. A nice departure from the previous decade of Bitcoin death notices and allegations of Ponzi schemes and such nonsense. Before we move on to myths surrounding El Salvador, please register yourself on the and learn the latest ways to profit in the bitcoin currency by trading.
Myth Number One: The People Are Not Technologically Advanced Enough to Utilize Bitcoin
It is total and utter rubbish. Instead of being a bug, the wallet that the government had commissioned to manage trade collapsed in the first few hours of its debut because it had become too popular for the app stores to keep up with demand. The government offered $30 in Bitcoin for the download alone, and the offer gained widespread attention very fast. Despite their high level of sophistication in dealing with various currencies and exchange rates (including the ability to switch between official and grey market prices), Salvadorans are adaptable and will adjust fast. In this regard, they are much more intelligent than the average American who thinks that the Canadian dollar is unfairly valued.
Myth Number Two: Bitcoin May be Too Volatile Currency
Perhaps that line was successful five years ago, but anybody can examine the price charts and, therefore, the long-term trend. This money is dead hundreds of times, yet it has refused to die every time. On the contrary, it is a deflationary token, which means that its value rises about the products and services it purchases, rather than decreasing. According to my forecast, it will perform admirably, rewarding savings while also promoting investment.
Myth Number Three: Bitcoin Cannot Compete with Traditional Remittance Technologies
It is, once again, a total fabrication. Western Union is a delayed, costly, and risky method of payment that carries significant counterparty risk. It will become abundantly clear very soon when individuals from outside the nation swarm Bitcoin ATMs to convert dollars into bitcoins, which they can then use to send money to friends and family in a brief period.
Myth Number Four: There Is No Chance This Will Become Popular
I guess that it will gain widespread acceptance very soon. If everything goes well, that number will climb much higher. Everyone accepted the risk of defying the world’s financial rulers only increases his popularity inside the nation. In addition, Bukele is not a tyrant, contrary to what some United States media are beginning to assert since he wants to serve another term.
Myth Number Five: Bitcoin’s Value Plummeted When El Salvador Accepted It
It turns out that bitcoin rose to $53,000 overnight and then dropped back to $51,000 the next day, after reaching a high of $49,000. There was some profit-taking and some reduction, but there was no actual collapse. You may label it a “down” move if you want, but the fact is that this is how bitcoin operates, and it should come as no surprise. People in this industry are now aware of the importance of seeing a price decline as an opportunity. Americans believe that it is impossible to do logical accounting under these circumstances but wait and see. This impoverished country is going to demonstrate to the rest of the world how to do it.
Myth Number Six: The President Is Simply Pandering to A Nerdy Audience
It is also a load of rubbish. President Bukele had the foresight to seek educated views and then to act on that viewpoint. In this way, he broke with the conventional wisdom that state leaders should depend on the masters of international central banking, who have little understanding of the new world of money. In reality, they are now ruling over the demise of the United States dollar as we speak.
Myth Number Seven: El Salvador Will Become the World’s Financial Hub of Operations
Once again, this is complete and utter fiction. With four out of every five employees in El Salvador employed in the informal sector and just one-third of the population having access to a bank account, money laundering is to improve rather than worsen. Maintain your awareness that bitcoin is not anonymous money; instead, it is pseudonymous, which means that you can trace it easily without knowing the exact identity of the sender and recipient.