El Salvador abandons Bitcoin as legal tender

Post by bbbbq » Tue, Feb 04, 2025, 6:04 AM UTC

antihipocrat wrote: post #99

p_j_w wrote: post #51

Earlier quoted context omitted.

>Now the businesses are free to accept it or not instead of being required to accept it. That's all. Right, so it's no longer legal tender.

Legal tender does not have to be a mandatory means of exchange.

Post by bbbbq » Tue, Feb 04, 2025, 6:06 AM UTC

elevaet wrote: post #409

paulgb wrote: post #183

Earlier quoted context omitted.

The trouble is, it needs to be more than that if it is to survive. Since inception, mining has mostly been subsidized by new bitcoin, which is capped by design (and about 95% distributed). Satoshi’s paper assumed that transaction costs would make up for the exponentially declining subsidy, but that hasn’t really happened since it never lived up to his “digital cash” vision.

I'm so curious what will happen as mining approaches the asymptote. When the mining rewards become more and more rare and if people aren't incentivizing the network with a lot of transactions, will transaction times just get slower and slower until it becomes a stranded asset?

Post by bbbbq » Tue, Feb 04, 2025, 6:08 AM UTC

blackeyeblitzar wrote: post #61

ptero wrote: post #17

That's heavy editorializing: El Salvador keeps buying the Bitcoin for its strategic reserve. Businesses and citizens can keep using it. But for getting an IMF loan, IMF (which, to put it mildly, doesn't like Bitcoin) required the end to Bitcoin legal tender status. Now the businesses are free to accept it or not instead of being required to accept it. That's all. The government plans to keep buying and using it.

Why does the IMF care what denomination they use domestically?

Post by bbbbq » Tue, Feb 04, 2025, 6:09 AM UTC

starspangled wrote: post #226

pcthrowaway wrote: post #175

Earlier quoted context omitted.

> it is also against the conservative status quo thinking of how to deal with crime How are tough on crime policies "against the conservative status quo"?

The people who are seen to be the experts and authorities in social theory and practice in their ivory towers in the UN and academia cling to their outdated and falsified ideas of what works and what doesn't and refuse to change or accept new things. Firstly, they are adamant that "tough on crime" policies do not work, they were adamant that Buekele's reforms would not work. Now sure there are probably ways they may…

Post by lern_too_spel » Tue, Feb 04, 2025, 6:10 AM UTC

desumeku wrote: post #72

lern_too_spel wrote: post #60

Earlier quoted context omitted.

I'd be surprised if DPRK doesn't already have access to the wallet and is just waiting to get the most out of it.

I highly doubt their BTC reserve is connected to the internet.