New ATH For Bitcoin While Salvadorians See Wealth Grow

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Last Updated on 21 October 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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Bitcoin reached a new all time high of $67,000 in the past day as analysts put in ever higher end-of-year target prices. Meanwhile over in the Americas, the residents of El Salvador, mocked in the beginning for their acceptance of Bitcoin as legal tender, are now seeing their wealth grow.

When it was finally time for El Salvador to introduce Bitcoin as legal tender, the world media was quick to point out that Bitcoin fell some 9% on the first day. Hoping that this would be the end of the story, they then turned against President Nayib Bukele, calling his plan ludicrous. As Bitcoin is about to break its all time high about a month later, few are laughing now. The only smiles to be seen are on the faces of the people of El Salvador who are able to see their Bitcoin investment grow on a weekly basis.

Salvadorians are increasingly investing in Bitcoin to protect themselves from inflation. While the US dollar faces a 5% inflation rate this year, Bitcoin knows no such thing as supply is fixed at 21 million coins. The government of El Salvador, who introduced Bitcoin as legal tender when it traded at around $40,000, has thus increased the net wealth of all citizens who had purchased Bitcoins by about 50% in only a month.

These figures seem to show a positive development in the sentiment of Salvadoran citizens in Bitcoin. The legalization of the latter initially met with strong opposition from some Salvadorans. A Bitcoin ATM was even burnt down during a protest.

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The authorities, however, continued their efforts to encourage the adoption of Bitcoin by its citizens, despite these internal opposition to which are added threats from rating agencies or warnings from both the UN and the IMF.

Salvador has even gone so far as to install 50 Chivo (the local crypto wallet) vending machines for the Salvadorian diaspora in 10 cities in the United States. El Salvador’s rulers are also offering discounts of 20 cents of the US dollar on every gallon of fuel paid in Bitcoin to encourage citizens to adopt Bitcoin.