El Salvador officially recognising Bitcoin as legal tender is a momentous occasion!
It’s true, Japan was first, but Japan has one of the major world currencies and also one of the richest countries.
Hyper-adoption of Bitcoin was always more likely in a country with a history of hyper-inflation - even more so in a country that didn’t even have its own currency!
US dollar adoption took care of inflation, but subjected it to monetary policies of an external country. But here are the two stats that make Bitcoin such a better option:
Remittances are expensive!
Gangs extorting recipients.
Long travel time to physical locations.
The total cost can be around 30% of the value of a remittance. Not to sound trite, but Bitcoin fixes this - it really does!
Strike on the Lightning Network is amazing. Watch Jack Mallers demonstrate:
It’s almost instant and virtually free - and it would literally increase the GDP of El Salvador by $1.8b per year if all remittances used Strike.
20,000 people are being on-boarded onto Strike each week and it is the number 1 app in El Salvador. Not the no.1 finance or payments app - THE NUMBER 1 APP!
So which country is next? I can only speculate as there is no shortage of countries which could benefit from Bitcoiin, but earlier today we had this tweet from a politician in Paraguay:
“The real one to the moon: #BTC + PayPal”
There are 1.7 BILLION adults in the world without a bank account,
66% of them have a phone, according to the World Bank.
The banking system has failed them - and Bitcoin will fix that!
The next time an imbecile tells you Bitcoin is just for tech-bros, you can politely tell them they are wrong - and give them real examples :)
Thank you for reading :)
If you enjoyed this newsletter, please share it with your friends.