“I can say almost with certainty that they(Crypto) will come to a bad ending.”
~ Warren Buffett on Bitcoin
Written by Bryan Lutz, Editor at Dollarcollapse.com:
Is Bitcoin, no bueno?
It’s been over a month now, and the world’s been waiting for Bitcoin to move up and to the right.
Except, it hasn’t.
Even with the dangling carrot of a Strategic Bitcoin Reserve in the United States, the price of Bitcoin hasn’t gone up like it has in previous cycles (after 6-12 months after halving).
It has breached the $100,000 mark, but that’s it.
And as we wait, the adoption of Bitcoin beyond the United States seems to be lagging behind too.
Bitcoin’s biggest national evangelist, El Salvador’s President Nayib Bukele has been forced to abandon it as a “legal tender.”
As it appears, only 8% of the population were conducting transactions with it anyway. Mass adoption has been full of skeptics.
The other 92% of the population said,”No, bueno” to Bitcoin.
The Tico Times reports:
El Salvador Abandons Bitcoin as Legal Tender After Failed Experiment
“Bitcoin was never used by most Salvadorans, its modern city was never built, and now it will cease to be legal tender in El Salvador, the first country in the world to adopt it in 2021: a complete failed economic bet by President Nayib Bukele.
Congress, dominated by the ruling party, approved last Wednesday a confusing reform to the Bitcoin Law at the request of Bukele’s government, which had no other option to receive the $1.4 billion credit agreed in December with the International Monetary Fund (IMF).
The reform eliminated the word “currency” when referring to bitcoin, but says it is “legal tender.”
Despite the lack of clarity, it lifts, as required by the IMF, the obligation to accept it in transactions or debt payments, a key condition for it to be “legal tender,” according to economic analysts.
With the change, “if someone owes you money and wants to pay you in bitcoin, you can refuse to be paid in bitcoin, but you cannot refuse if it’s legal tender,” economist Carlos Acevedo explained.
The use of bitcoin in El Salvador’s dollarized economy, according to the new rule, will be optional and will be at the discretion of the private sector to accept cryptocurrency payments for goods and services.
Businesses are no longer required to convert dollar prices into this cryptocurrency. “Bitcoin no longer has that force of legal tender.
That’s how it should have always remained, but the government wanted to force it and it didn’t work,” economist Rafael Lemus said.”
If Bitcoin is no bueno…
Should Trump even be considering Bitcoin, or should he concentrate his efforts on a new gold standard?
Boosting the value of Bitcoin would signal to the world that there’s a new, stateless currency in town, and it’s here to stay.
Albeit, a new decentralized currency for nations to compete over.
Our next generation reports from the UCSD:
Strategic Bitcoin reserve: The national debt solution for Trump
“On Thursday, President Donald Trump signed an executive order to set up a task force that will consider creating a national digital stockpile, marking a significant shift in federal policy toward promoting and supporting the United States’s digital asset industry…
…The national debt is significantly impacting the U.S. economy.
It is decreasing investor confidence, making treasury bonds more expensive. Multiple credit agencies have downgraded the U.S.’s AAA credit rating to AA+, citing expected fiscal deterioration over the next three years as well as growing government debt.
Lower credit ratings mean higher interest rates for loans, and in turn, U.S. debt will become more costly.
…If the U.S. were to buy Bitcoin to store in a strategic reserve, it would signal to other nations and domestic companies that Bitcoin is an asset that is here to stay and worth investing in…
…In addition, a Bitcoin reserve would also help in a time of exorbitant crisis. If the U.S. is unable to pay off its debt, investors will flock to other assets like gold or Bitcoin, rather than U.S. Treasury bonds.”
The other side of the story is that Bitcoin is just a bunch of useless tokens. It’s only for gamblers and speculators.
The say, “Gold is the real safe-haven asset,” and…
Basically, only believe that gold is tangible, not speculative.
I would honestly link more of this Peter Schiff article, if it had more to argue against Bitcoin.
So far, the strongest argument against Bitcoin is that it’s speculative…
Until it isn’t.
If the world’s strongest economies adopt it there’s no telling how valuable Bitcoin could become.
Then again, as I write this, gold is almost at $2850 USD, while Bitcoin is falling below $100k once more.
What do you think?
Is Bitcoin no bueno?
