Bitcoin poses no challenges to the existing global power structure, otherwise you wouldn't have ever heard of it.
We’ll revisit this in a couple of years to see if any economic benefits emerge. I’m of the opinion it’s just a stunt, and the place will still be a shithole.
they are talking some interesting theories, tapping into volcanoes to create energy, then attracting bitcoin miners with cheap power. in just the tax breaks alone they will attract a lot of new bitcoin businesses, just the start of the domino effect.
not really, geothermal energy sources are not new https://www.newscientist.com/articl...ged-geothermal-energy-could-power-the-planet/ mining bitcoin with cheap energy sources is though, why so negative?
Cool idea for an alternative power source but will the commercial industrialisation of active volcanos kill off the ritual volcano sacrifice tourism market?
They won’t be able to afford to build the power plants. They’ll need to incentivise the adoption of the local currency first if they hope to attract investment or be able to construct it themselves. This whole story is hype.
It's not going to transform into some kind of utopia overnight and I doubt a foreigner on the other side of the world will even notice a difference, but if they attract even just a tiny bit of investment with this decision then that is an economic benefit. That said, I did say I thought it was a bit of a stunt. I don't like politicians much, but that doesn't mean good things won't come from this - or other politicians might jump on the bandwagon and realize this policy is a way of signaling progressiveness and modernity to the new generations of voters coming through.
Investment then needs to enter the country in whatever the local currency is called and employees, suppliers etc are paid in local currency and the cheap energy produced by these power stations for local consumption is charged in local currency. And so on and so on.This will then create demand for the local currency so that El Salvador can begin to move away from the USD. BTC miners could be given free access to energy as part of the attraction to invest, but must pay tax in the local currency. Again, further enhancing demand. None of that will happen though, Sth Americans are notoriously short sighted.
Imagine sitting through a lecture with him? The professor seems to think that the USD gives El Salvador strength. Good advert for George Mason Uni I suppose.
couldn't watch any further after less than 5 minutes... old codger: (paraphrasing a bit) "Russians, Iranians, Chinese will want to cash out their BTC for greenbacks! uh uh uh uhh.. they want greenbacks" interviewer: "how will the mechanics of that work?" old codger: (paraphrasing again) "uh uh uh... they will go to an ATM and suck up all the greenbacks they can get" bahahahha, yeah right. the Russian mafia with millions worth of BTC want to go to El Salvador, rock up to a little ATM and cash out crumpled up, wrinkly US bills in ole El Salvador. probably be lucky it'll spit out a few grand worth of USD