It is reported that in June 2021, the Congress of the Republic of El Salvador passed a bill to list Bitcoin as the national legal tender officially, and highly recognized Bitcoin in the field of digital currency payment. Salvador is also the world's first legal Bitcoin sovereign country. As the most densely populated country in northern Central America, President Nayib Bukele of the Republic of El Salvador said that the circulation of fiat bitcoin could meet the country's daily payment needs. Bitcoin will usher in a vast market of users Volume, this also means that in the future, Bitcoin will be recognized and used by more and more countries, and more and more countries will embark on the road of legalization of Bitcoin. The legalization of Bitcoin sets a new milestone for the development of encrypted finance.
The signing of the draft
The legalization of Bitcoin is a remarkable feat in the history of digital currency. The news is undoubtedly a powerful bolster to the digital financial market, and the digital economy will surely lead the trend of the world economy.
Blockchain is an opportunity in the era of the digital economy, and it is also an unstoppable trend and trend. After 11 years of development, Bitcoin has made great strides and has become a mature digital currency with transactional value attributes. Today, the wave of blockchain development is unstoppable and is an inevitable product of the development of the digital economy era. This time, Bitcoin was used as legal tender for the first time and was an important node in the development of Bitcoin. Bitcoin has sufficient capacity and market size to carry cross-border payment, consumption circulation and other functions, and it will become a global consensus currency in the future.
FIL is the mainstream currency with the most potential on the distributed storage track. The legalization and legalization of Bitcoin into FIL usher in unprecedented development opportunities. It is expected to become the mainstream currency for global consensus circulation transactions, with immeasurable value potential. As a comprehensive service platform dedicated to the ecological application of FIL, the world provides integrated ecological service solutions for FIL, launches a powerful technical power engine, and builds the layout of the entire FIL ecological industry chain, and solves the problem of FIL's entire industrial chain from A to B. End-to-C end pain points and problems, reshape industrial production relations, and empower the sustainable development of the industry.
Let me briefly explain why El Salvador can implement this program. First of all, the most crucial point is that he does not have his legal currency to use Bitcoin directly. Moreover, legal currency needs to be printed every year, and Bitcoin corresponds to mining. If a place uses Bitcoin as legal currency, this city must have sufficient mining capacity. As we all know, mining consumes a lot of electricity very much. Energy, especially thermal power generation, has an even more impact on the environment. Just because of this, many areas have also banned mining, but this is not about El Salvador. El Salvador is unique. Because Salvador is located in a volcanic area, it can entirely rely on geothermal power generation. The short answer is to use volcanic energy to generate electricity. Volcanic energy is a clean and renewable, environmentally friendly energy, and this energy is similar to wind power. Power generation is more stable and cheaper than electricity. This supports El Salvador's "printed currency" technology.
Characteristics of Bitcoin
In my opinion, Bitcoin does not have the characteristics of legal tender. First of all, the first factor that is not available is his extreme instability. Even though the exchange rate between various legal currencies has also been changing, the range of changes is not particularly large; that is, the value itself does not fluctuate much. Therefore it is called "stable currency" in the currency circle. But Bitcoin is not. Its price fluctuates wildly. It was still 4wU in the first two days, and it may become 3wU today, which is 25% less in an instant. There is also a high probability that those GJs who cannot make Bitcoin a legal tender in the feasibility analysis will not have an economic trade with you based on Bitcoin as a currency. The second is that Bitcoin itself does not belong to any GJ. Hence, the dominant power is not on the president's side, which significantly increases the risk of the people and causes a series of legal problems.
Write at the end
As a person in the currency circle, I certainly hope that Bitcoin can be legalized and recognized by more people. Mainly when applied to biological applications, it is like ET can be used to exchange some ETHST peripheral toys. But I still do not support him as a country's legal tender because I know that the pain caused by economic chaos is the people's pain.