Bitvice This week we want to focus on one thing that happened yesterday, the 7th of September. A day that might be remembered in the history books of the future.
Bitcoin was officially adopted in El Salvador as legal tender and the country became the first to officially buy Bitcoin in its sovereign capacity:
Bitcoin is now accepted from fruit vendors to McDonalds throughout El Salvador. It has been a 12-year journey of a cypherpunk project to a nation coin.
It is a momentous occasion for the world in my opinion. People may cast this news aside as a small matter, but 6 million people are officially open to Bitcoin and every single El Salvadorian can open a Bitcoin Wallet through Chivo and receive $30 in Bitcoin for free.
The president of El Salvador was full of excitement on the eve of this momentous occasion:
The Bitcoin community also joined in on the celebrations:
The Bitcoin community also went full-throttle yesterday by joining the El Salvadorians in buying $30 in Bitcoin to celebrate in unity:
Ok, but why should I care?
There’s the monetary aspect and there is the humanity aspect. Let’s talk through the former first:
As of yesterday, El Salvador has bought +400 Bitcoin and their accumulation will grow. That first yield is close to half a day’s supply.
If one little nation state buys half the supply of Bitcoin in one day, just to get things started – what happens when other nations join in?
Basically, the world is watching. This is the Pilot of all Pilots. There will be hiccups along the way – no doubt – but if things work, the way they are supposed to work; other nations will join. Just like other companies followed Microstrategy in accumulating Bitcoin. If a poor nation sees solid adoption, strong savings rates and an overall increase in their sovereign wealth – why wouldn’t other smaller nations join the fray?
And what happens to the supply of Bitcoin as more and more institutions and nations adopt Bitcoin?
Remember, Microstrategy buying Bitcoin last year is most certainly one of the largest catalysts in Bitcoin’s rise to $65,000. What price is in store, with a first nation adopter?
Now let’s talk to the more important point: the ‘Hope’ that Bitcoin brings to the poor.
President Bukelele believes that Bitcoin will solve an important problem in his country; poverty.
There is finally something that anyone can purchase, in an equal manner. People in El Salvador can’t buy equities or Futures options on US Stock exchanges.They can’t buy US real estate or hard assets such as Gold. Basically, they can’t buy assets that the rich can, that protects their wealth. The poor can only hold enough Fiat money from week to week to just get by. Through inflation, this asset becomes less and less in value.
And that is the basic summary of the global increase in inequality through the inability to save effectively.
Finally, there is an asset that is accessible to every Billionaire, poor person and everyone in between. Now people can hold an instrument that cannot only buy them food, but can store their wealth.
It is an extremely important point that we have just crossed. This is the actual giant leap for humankind.
I can’t wait to see what happens next.
Bitvice Podcasts and Media
Last week, Ricki had an absolutely fascinating discussion with Matthew Daneel, an experienced financial advisor on how everything works in his profession. Watch or listen to the discussion and learn more about RAs, policies, Reg 28, dogdy IFAs, tax-free savings account and how Bitcoin fits into all of it.
You will definitely learn a lot from it – I certainly did!
You can follow our By The Horns discussions on YouTube or via our podcast on Spotify, Google Podcasts or Apple Podcasts. If you are listening on a different podcast app, here is our RSS feed.
Our new website is live! Keep a lookout for what’s to come.
We’ve updated our website and we hope you find it to your liking. Please feel free to share with family and friends.
We are also hard at work with our Knowledge Base and will keep updating it with important Q and A’s.
We’ve got a lot more to come and very, very soon – you’ll be able to autobuy Bitcoin weekly, bi-monthly or monthly – straight to your self-custody wallet of course!
Enjoy the week, keep stacking with the El Salvadorians and keep on learning about Bitcoin.
