Everyone holding Bitcoin May dream that one day it will become a legal tender. Well, the dream is almost coming true. El Salvador is about to roll out Bitcoin as a legal tender on September 7th, 2021.
What is legal tender?
A legal tender is a currency form in which the court of law legalizes a currency as the country’s fiat currency.
Can Bitcoin become fiat currency?
Of course, it can! Only if you are willing to use it. As we already experienced, the Bitcoin price fluctuates in a much larger range which makes one party lose more than the other after the transaction.
Bitcoin as a debt-backed securities?
Can Bitcoin-backed debts? Of course and only if you want to! Your debt can be easily pay off if Bitcoin drops a lot of harder than ever if Bitcoin shot up to the moon!
Banks controlled wallets with KYC requirements
The banks are acting rather like crypto exchange platforms that convert Bitcoin into other fiat currencies and they may charge higher fees.
Paying with Bitcoin
Citizens may need to spend more money to pay for their products and services. Any transaction disputes may require no one but both parties to settle the transaction.
Bitcoin does not resolve social issues
El Salvador’s citizens do not benefit from adopting Bitcoin as legal tender. It did not have social equality but widening the wealth gap. It probably will not immediately improve their living conditions but requires them to purchase or own a smartphone in order to have a functional wallet.
In conclusion
Legal tender is good for certain digital currencies but not likely beneficial for everyone in terms of becoming fiat currency, particularly Bitcoin. There are better digital cryptocurrencies with lower transaction fees and fast networks. However, if social issues do not resolve, then cryptocurrency may be just another way for the government to control and monitor its citizens.
Photo adopted by Tingey Injury Law Firm on Unsplash before revision.
Related articles:
Stablecoin is Not So Stable
CBDC: Stablecoin 2.0 or Stablecoin Killer
Chinese CBDC: the Ultimate Financial Weapon or Just another Copycat
DeFi Swap: Great Returns come with Great Cost
CBDC vs Cryptocurrency: the War of Privacy
Inflation vs. Bitcoin: How Speculation to Hedge Inflation has Failed in Short Term but may Create Opportunity in Long Term
Game of Three Kingdoms: CBDC vs. Cryptocurrency vs. TechCoin
Gold vs. Bitcoin: Digital Twin or Enemy
Volatility of Bitcoin: Threat or Opportunity
Lesson Learn from Robinhood IPO: Era of Crypto Exchange Comes to an End or a New Beginning?
Hypothetically, What if the Fed Fails to Control Inflation, Will Crypto Save Us?!
Stablecoin: We Ever Need Them More Than CBDCs
China FUD: Are We Done Yet?
SEC vs. Ripple: the Endless Game of War
SEC vs. Defi: What is the goal of the Defi?
City Coins: Are they the Era of New Coins?
Ethereum London Hardfork: How Hard does It Actually Fork?
Did the U.S. government just thumbs up on Bitcoin and down on Ethereum after the London Hardfork?
The End of Era for Crypto Exchange Platform?!
NFT: Digital Solution or Delusion?
NFT: The Future of Gamers' Assets
Is Bitcoin Untraceable Anymore?! It Depends!
Why Crypto Got So Political Suddenly: The Beginning Tale of Government Crypto Surveillance Program
Where are We Position Crypto at : the Problem with Money and Wealth
Crypto Hacking: How Did it Really Happen?
Bitcoin Mining Recover?! The Chinese vs. The U.S Strategy of Blockchain
The Legendary of Shitcoin: Meme to the 🌓 or Unique of 💎 or Simply just 💩
Defi: A Rainbow 5-Layers Cake
Crypto Economy: the Untold Speculative Financial System We will Live?
Red Alert: Lesson Learns from the Nearly Cashless Nation
Jack Dorsey’s Ambitious: Twitter wants to Become a Place of Freedom of Speech
What Categories Does Bitcoin Belong to or Does it Really Matter?
Quantum Financial System: The System Lost Itself in Quantum World
Doge 2.0: Who Let The Dog Out?!
Legendary Hacker: the White Hat into the Rescue
Crypto Hot Hub: The Best Place to become Crypto Incubator
EIP-1559: The Future of Ethereum Economy
Break the Fourth Wall?!
Robot Sucks: How Lousy Jobs AMMs Did to Ruin the DeFi
-------------------------------------------------------------------------------------
Disclosure: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose cryptocurrencies are mentioned in this article. This information is only for educational
