Lifting the veil on Bitcoin paradise

On June 8, El Salvador announced that it would use Bitcoin as its legal tender. Since then, the world's first country to use Bitcoin as legal tender was born. Media from various countries rushed to report the news. I believe that most people have never heard of the name El Salvador before. Today I will lead you to understand this Bitcoin paradise - El Salvador from another perspective.

El Salvador is weak

El Salvador, whose full name is the Republic of El Salvador, is located in the northern part of Central America and is the most densely populated country in Central America.

The original inhabitants of El Salvador are Indians. The economy is mainly based on agriculture, producing a lot of coffee beans and cotton, and has a weak industrial base. According to data from the Ministry of Foreign Affairs, as of July 2021, El Salvador's inflation rate was -0.37%, the unemployment rate was 6.98%, and the GDP was -7.9%. If these data are not enough to prove that El Salvador's national strength is weak, then let us look at another set of data.

As of 2007, the number of motor vehicles in El Salvador was 94 per 1,000 people;

As of 2008, the total length of railways is 283 km;

As of 2003, there are six television stations, two of which are national television stations;

Through these data, it is not difficult to draw a conclusion that El Salvador's national strength is indeed very weak.

The real-life Grand Theft Auto

While looking up information, a piece of news caught my attention.

I have intercepted a paragraph of the article, let's feel it together, "The local sheriff once told soldiers not to shoot for fear of gang revenge. In March, 140 people were shot and killed by police, accounting for 1/3 of the deaths that month." More data shows that nearly 95% of criminal activities in El Salvador cannot be dealt with . Perhaps this is one of the important reasons why El Salvador can be called a Bitcoin paradise in the future.

The sickle falls on the people of El Salvador

In June this year, after El Salvador adopted Bitcoin as legal tender, some Western countries expressed their appreciation and affirmation. Some companies even accepted Bitcoin payments, such as Starbucks, McDonald's, Pizza Hut and other well-known companies. However, 95% of companies still oppose accepting Bitcoin.

Starbucks in El Salvador accepts Bitcoin payments

This means that El Salvador’s adoption of Bitcoin may still not truly solve the problem of weak national strength. Instead, it may fuel Stars and Stripes Capital’s enthusiasm for reaping the benefits in El Salvador, causing the Salvadoran government to swing its sickle upon the people’s heads.

A paradise of freedom or an abyss of sin?

El Salvador’s argument for Bitcoin can be summarized as follows: “In order to increase residents’ income, increase national wealth, provide better financial services to residents, and protect the privacy of enterprises, we have decided to adopt Bitcoin as legal tender.”

Such rhetoric is very attractive and has no disadvantages for a country with a backward economy and extremely poor infrastructure.

However, such a thing that has no harm but only benefits has been praised by Vitalik Buterin and the founder of Blockchain.com recently.

They believe that El Salvador’s forced promotion of Bitcoin goes against the original intention and essence of cryptocurrency. For now, the voices of opposition are higher than the positive voices, which shows that El Salvador’s intention to promote Bitcoin is self-evident.

It seems that El Salvador's use of Bitcoin as legal tender cannot be studied as a successful case. Promoting Bitcoin is not the same as promoting blockchain technology, and blockchain technology is not represented by only Bitcoin. For El Salvador, the road to exploring cryptocurrency is long and arduous. Similarly, for the encryption industry, there is still a long way to go to draw a clear line between blockchain and ICO.