El Salvador, Dollarisation, and Bitcoin — What to Expect From Here

Discussion in 'Digital Currencies' started by hawkeye1, Jun 8, 2021.

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  1. 66rounds

    66rounds Well-Known Member Silver Stacker

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    66rounds, Jun 18, 2021
    #41
  2. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Why is that?
     
    mmm....shiney!, Jun 18, 2021
    #42
  3. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    Keep it on topic pls.

    This has nothing to do with El Salvador. Start a new topic about Titan or Mark Cuban getting rekt or whatever.
     
    BuggedOut, Jun 18, 2021
    #43
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  4. neonuke

    neonuke Well-Known Member Silver Stacker

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    neonuke, Jun 19, 2021
    #44
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  5. madaw1

    madaw1 Well-Known Member

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    Somewhere in El Salvador....
    upload_2021-6-19_20-31-33.jpeg
     
    madaw1, Jun 19, 2021
    #45
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  6. Mill3d

    Mill3d Active Member

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    Had a good look at this when it came out

    Here are some basic issues if considering this

    El Salvador lies in Central America

    It has a highly dense population, one of the world’s highest

    There is extreme poverty and most of the country lives like that

    It is very dangerous as a result. South Africa level, but not anti-white. Most violence is not towards gringos and foreigners

    At the same time, the GDP and marked Gini coefficient may explain the quite low permanent residency requirements, just 3 BTC

    Unless you intend to do something transformative and have say 1000+ BTC (Not a lot of money back in 2011), you may not get away without Spanish

    If you speak Spanish and have a good amount of BTC, with no ties to complicate issues like covid does, some sense of leadership, especially if relatively young, then this might work

    If older, healthcare will be an issue outside of San Salvador. This won’t matter so much if you accept your fate, but if you must live out as long as possible then even within the capital, ambulance waits and traffic will likely be issues. I’d negotiate that early on. If you are well off enough, you’d want a crew on standby and equipment in your house eg decent defibrillator, quality airway equipment, oxygen tank. As the kind of hospital and health service desired is in San Salvador almost exclusively from what I have read so far, coupled to the traffic issue, you’re pretty much toast in a full blown emergency if unprepared, especially if you live elsewhere.

    If I had no ties and at least a decade younger, I’d think about going there and sussing it out. You’ve got a large labour pool, potential to develop capacities if you have a two decade framework or more and if you marry into the elite, a dynasty.

    People may scoff, but opportunity is generally regarded as worthless when at its most valuable, ala BTC back in 2010-11. Some of you may remember when it was news on zerohedge it was trading above 1 cent, then later when trading above $5

    This may be a good opportunity for those that are relatively well off in BTC, not tied down, adventurous, intellectually capable enough to both pick up Spanish quickly and develop business.

    Literacy is unusually poor in this country. I’m not sure if it is intelligence related or/and lack of opportunity. Likely a mix but I wonder how much may be modifiable and that’s where opportunity comes in. Not likely at the level getting into education in China was in the 1990s but still may offer decent leverage given how downtrodden it looks

    It wasn’t all that long ago there was a “civil war” and while it is not exactly Western Germany, it may well be undervalued.
     
    Last edited: Jun 19, 2021
    Mill3d, Jun 19, 2021
    #46
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  7. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Accumulate assets, spend fiat currencies.
     
    mmm....shiney!, Jun 19, 2021
    #47
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  8. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Forcing merchants to accept BTC as a payment? How very libertarian. Not. :eek:

    El Salvador's fiscal problems stem from the USD. While it continues to use the USD as legal tender, and more insidiously issues debt in USD, then the introduction of BTC will provide little benefit to El Salvadorians and their liberty.

    Twitter post:
    Source: https://cryptonews.com/news/mps-bid-to-amend-el-slavador-s-btc-bill-raises-questions-abo-10741.htm

    And just in case anyone thought that mainstream economists (and many BTC maximalists I would say) actually understood where El Salvador's problems stem from, we have my old friend Frances Coppola who makes a habit of being continually incorrect:

    https://protos.com/el-salvador-bitcoin-bukele-legal-tender-adoption-read-this/

    o_O

    Frances, Frances, Frances. They can run out of USD. Not their local currency. They could also run out of BTC, pupusos and motmots or anything else that the Central Bank has no control over. Yes, natural and labour reserves are critical for an effectively functioning economy but they don't provide liquidity. Under a centralised State only a government with currency sovereignty ie a monopoly on the issuance of fiat can provide liquidity.
     
    mmm....shiney!, Jun 19, 2021
    #48
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  9. TreasureHunter

    TreasureHunter Well-Known Member

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    I was reading so many negative things about Bitcoin recently, about it being unreliable/consuming to much energy etc., that I started to ask myself whether this is the decline or what is it?

    It has gone down a lot and it could keep falling. What do you think?
     
    TreasureHunter, Jun 20, 2021
    #49
  10. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    Cryptos are driven by sentiment and that goes in cycles (like most markets). But being ultimately so dependent on sentiment is why FUD and Hype have such strong impacts on the market day to day. There is always some douche making the market move with their tweets, but the fundamentals of blockchain remain solid and are arguably improving.
     
    BuggedOut, Jun 20, 2021
    #50
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  11. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    When this stunt fails, as it will, when legislating BTC as legal tender in a country that creates tax obligations in another nation's currency and when the living standards of Salvadorans and the economy hasn't shown any marked improvement as a result of this legislation then the Schiffs, Buffets, Coppolas and Yellens of this world will be Tweeting how much of a failure BTC is.

    We don't need this shit. We need sensible intelligent people implementing sensible and intelligent policy.
     
    mmm....shiney!, Jun 20, 2021
    #51
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  12. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    Please tell me where in the world this happens and I'll start packing my things.
     
    BuggedOut, Jun 20, 2021
    #52
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  13. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Well not El Salvador. ;)

    It'll happen in one of the Western nations first if it does because that's where the greatest advances in liberty occur. A democratic nation that is economically and resource rich and which has sovereignty over its currency. So that limits it to the following:

    USA
    UK
    Japan
    Aus
    NZ
    Canada
    Switzerland
    Sweden
    Denmark

    Kind of a 9 nation army. And probably not in my lifetime. In the meantime @BuggedOut, you could always pack for holidays.

    Edit to add: I hear East Timor is nice, just stay out of the hills.
     
    mmm....shiney!, Jun 20, 2021
    #53
  14. JohnnyBravo300

    JohnnyBravo300 Well-Known Member Silver Stacker

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    Dub
     
    JohnnyBravo300, Jun 20, 2021
    #54
  15. dozerz

    dozerz Well-Known Member Silver Stacker

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    the last time i checked 1 bitcoin still = 1 bitcoin, not sure it will ever be diluted.

    why so negative you sure this will fail? all those 9 nation armies have wonderful social support structures already in place.
     
    dozerz, Jun 20, 2021
    #55
  16. 66rounds

    66rounds Well-Known Member Silver Stacker

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    66rounds, Jun 23, 2021
    #56
  17. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    If he's got any it depends who knows his private key. If he didn't tell anyone then no one gets it, they're "lost".

    If they're on an exchange say Coinbase which is highly unlikely and if they can track what they suspect are his transfers then they can demand that the exchange disclose his private key which will give them access. Unless of course they've got hacking software no-one else in the world knows about but you'd think they would've done that by now even without an extradition and run a story in the media like the Colonial thing.
     
    mmm....shiney!, Jun 23, 2021
    #57
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  18. neonuke

    neonuke Well-Known Member Silver Stacker

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    neonuke, Jun 24, 2021
    #58
  19. TreasureHunter

    TreasureHunter Well-Known Member

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    Those gold diggers don't know how to use Bitcoin :D
     
    TreasureHunter, Jun 24, 2021
    #59
  20. alor

    alor Well-Known Member Silver Stacker

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    Biden declares Florida building collapse a national emergency, authorizes FEMA & other federal agencies to join response efforts
    looks like more miners moving to Florida near collapse location ???, so more machines will be off line as well lol
     
    alor, Jun 25, 2021
    #60
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