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Wayne Radinsky diaspora
El Salvador made Bitcoin legal tender 9 months ago, but Bitcoin has tumbled in value.

"In Bitcoin Beach just over half the businesses I came across accepted Bitcoin, but drive north 80 minutes to the capital, San Salvador, and it's more like a quarter."

"Cash is still very much king here, with more than half of Salvadoreans not owning a bank account."

Bitcoin: Will El Salvador's big crypto gamble pay off?

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tom grzyb diaspora
That's a big Ooops.
Starry Gordon diaspora
I don't understand why anyone would make Bitcoin a legal tender, since it does not seem to perform any of the functions we usually associate with money. Since its supposed value fluctuates rapidly and radically, it can't be used as a store or measure of value and is very dubious as a medium of exchange. Since this seems so obvious I am wondering why the government of El Salvador would make it a currency. The slickness of the advertisement "PAGOS CON BITCOIN" leads me to believe some form of chicanery may be involved.
Starry Gordon diaspora
Thanks. The situation is reminiscent of Albania in the late '90s, unfortunately -- in other words, worse than I thought.
Oof--Albania! I remember that. My guess is that it's a desperate act to do something about currency inflation that isn't official devaluation. Argentina went through a couple of bouts with that issue and pretty much stands as poster boy for what NOT to do with a sovereign currency.
Starry Gordon diaspora
Thanks for this information. I'm passing it along to some journalists who don't seem aware of it. The combination of state power with the casino-like aspects of Bitcoin seems likely to have a bad outcome.
Andrew Pam diaspora
I suspect so, yes.

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