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Nabil Lahlou
September 9. 2021
Over the past years, a new currency has begun to be talked about and discussed more and
more. This is what many people refer to as cryptocurrency. Many people have heard of crypto but find great difficulty in truly understanding the concept. On top of that, with so many different coins out there, more being created on a daily basis, and many holding little to no value, digesting what is truly taking place in this new world of cryptocurrency is a difficult task. However, crypto has been on the rise and major news revolving its future has come out.
Earlier this week, El Salvador became the first country to recognize a cryptocurrency as a
legal currency, more specifically Bitcoin. Bitcoin is the first coin many people associate with
cryptocurrency as it is very well known. It is a decentralized digital currency, without a central
bank or single administrator, that can be sent from user to user on the bitcoin network without the need for a mediator. This is very appealing to many as large amounts of money can be transferred without the use of a third-party. In president day, one Bitcoin is worth about $46,910 U.S. dollars. On top of that, Bitcoin has a maximum supply of 21,000,000 coins and it is estimated that about 18,660,000 are circulating in the market. In El Salvador, Citizens and businesses are now being encouraged to use the coin as part of their daily lives with my stores and restaurants already accepting it. But is this a safe economic decision with how unstable the coin truly is?
According to The New York Times, many experts are questioning the decision. They
believe that using a cryptocurrency this early can create instability and unnecessary issues with an already weak economy. Others believe it opens the door for more illegal activities. El
Salvador's president, Nayib Bukele believes the use of the coin will allow for faster, cheaper
payments and more foreign investment. The belief is that with many citizens not having bank
accounts or credit cards, they can simply use the currency on their phones. However, only days after the announcement, citizens were protesting the usage. This led to the tanking in value of the coin in a very short time period displaying its true volatility. With the constant fluctuation of its value, would you be willing to use this currency as part of everyday life?
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