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El Salvador’s Bitcoin Law, 1-Year Anniversary: The Good, The Bad, And The Ugly

Believe it or not, El Salvador’s Bitcoin Law is only one year old. This is a multi-year project in its infancy. What mainstream media is working extra hours to call “a failure” is the equivalent of a baby. Why do they hate babies so much? All jokes aside, there are several areas where criticism of the project is justified. The thing is, mainstream media, the IMF, and the World Bank have problems identifying them.

The Bitcoin Law project is not failing and El Salvador hasn’t “lost” money on their bitcoin investment. The project’s failures can and should be criticized, and that’s where Bitcoinist comes in.  However, the Salvadoran government knew what it was getting into with its bitcoin investment. Volatility is the name of the game. This has happened before and will happen again. As long as El Salvador doesn’t sell their BTC, there’s no loss. There are just market fluctuations.

And speaking about the government, this publication is about bitcoin, so we won’t discuss politics. This post is about El Salvador’s Bitcoin Law; nothing more, nothing less.

In any case, we’ll get to the criticism. Let’s be courteous and start with the flowers.

The Good – El Salvador’s Bitcoin Law, 1-Year Anniversary

The first thing to praise El Salvador about: Bitcoin is legal tender there. Its citizens have direct access to the greatest monetary system ever invented. The government is the first one openly accumulating the scarcest asset in the world. That in itself is outstanding. Plus, they’ve avoided the temptation of the digital printing press and remain bitcoin-only. That is an anomaly of epic proportions, but it’s hard to see its magnitude because El Salvador’s Bitcoin Law was the first one. 

In a year in which every country under the sun is reporting record inflation numbers, El Salvador remains in the green. On top of that, the US government has been printing dollars like there’s no tomorrow. The other two dollarized countries in the area, Panama and Ecuador, report protests and chaos in the streets. El Salvador is calm on that front. They might still be dollarized, but they’re also hyperbitcoinized and that made a difference. Plus, the government took profit from their bitcoin investment and built a pet hospital that will serve San Salvador for years to come. 

The Bitcoin Beach people are word-wide celebrities in bitcoin circles. They’ve been a staple of the latest bitcoin conferences and their story usually gets extra praise in the press and Twitter. The Bitcoin Beach project in itself, the inspiration for El Salvador’s Bitcoin Law, keeps growing. It’s getting stronger and it’s helping similar projects to follow in their footsteps. That shows greatness.

BTC price chart for 09/07/2022 on Bitstamp | Source: BTC/USD on TradingView.com
The Bad – El Salvador’s Bitcoin Law, 1-Year Anniversary

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