Earlier quoted context omitted.
Well, for buying Monero to buy drugs online right?
Don't try to reason with them. Their minds are as closed as a MAGA.
Sorry what?
El Salvador abandons Bitcoin as legal tender
661–670 of 930 posts
Re: El Salvador abandons Bitcoin as legal tender
#662Earlier quoted context omitted.
Don’t forget buying drugs online! Which is mostly what I use it for…
Well, for buying Monero to buy drugs online right?
Yes. First I buy bitcoin from the X, then I transfer it to my bitcoin wallet.
Next I transfer it to kraken, convert it to Monero and deposit it on my drug market of choice.
It used to be simpler but this is how I do it nowadays.
Re: El Salvador abandons Bitcoin as legal tender
#663Earlier quoted context omitted.
That’s a lot of words for “it cannot be used in everyday financial transactions”.
What do you mean, I use bitcoin and the lightning network all the time for small payments.
I wish there was usdc over lightning
if there is, it’s poorly advertised
does seem like a huge swing and a miss for lightning to only have unstable value units of account going over it
the market clearly wants something else, and has that, on other networks at large volumes
Re: El Salvador abandons Bitcoin as legal tender
#664Earlier quoted context omitted.
that doesnt hold for a deflationary currency
If the value of your coin only goes up in value, why would you use 1 bitcoin now to buy a pizza slice if you can use it 5-10 years from now to buy a house?
A house in 5-10 years is nice, but it doesn't stop me from starving to death today.
Re: El Salvador abandons Bitcoin as legal tender
#665IMF gave them 1.4 billion to abandon the “experiment”: > The IMF made this a condition for a loan of 1.4 billion US dollars (1.35 billion euros). In December of last year, the IMF reached an agreement with President Nayib Bukele’s government on the loan of the stated amount to strengthen the country’s “fiscal sustainability” and mitigate the “risks associated with Bitcoin,” as it was described. —- I dislike cryptocur…
They probably also have a condition not to spunk it on crypto.
The bank would be pretty reckless not to stipulate these things.
Re: El Salvador abandons Bitcoin as legal tender
#666Earlier quoted context omitted.
> to mitigate the risks associated with Bitcoin Was that the goal of the loan? How did you come to this conclusion?
Its literally stated. in those words, in the upthread excerpt that describes them receiving the loan.
The target of the funds is not related to bitcoin.
"The program is anchored on improving the underlying primary balance by around 3½ percent of GDP over 3 years, to put the ratio of public debt to GDP on a firm downward path after peaking at 85 percent of GDP in 2024. High quality measures, worth 1½ percent of GDP in 2025, already included in the approved budget, will reduce the wage bill, spending on goods and services, and transfers to municipalities. To ensure fiscal sustainability and a further reduction in borrowing costs, reform efforts will center on strengthening the efficiency of the civil service, the viability of the pension system, and revenue mobilization. Fiscal consolidation will be conducted in a manner that strengthens support for the most vulnerable and protects priority public investment."
The assessment of their economy seems broadly positive
“The Salvadoran economy has steadily expanded since the pandemic, on the back of robust remittances and a remarkable pick-up in tourism, and amid an improved security situation, with climate shocks having only temporary negative effects. Meanwhile, the current account deficit has continued to narrow, and inflation has fallen further – supported also by lower global commodity prices. The fiscal situation continues to improve very gradually, and recent liability management operations have substantially lowered near-term financing needs, in the context of sharply lower sovereign spreads."
“Building on this progress, and recognizing El Salvador’s pending macroeconomic and structural challenges, the IMF-supported program aims to strengthen fiscal and external stability and help create the conditions for stronger and more inclusive growth."
Re: El Salvador abandons Bitcoin as legal tender
#667Earlier quoted context omitted.
If the value of your coin only goes up in value, why would you use 1 bitcoin now to buy a pizza slice if you can use it 5-10 years from now to buy a house?
A house in 5-10 years is nice, but it doesn't stop me from starving to death today.
I think it was just an analogy. The incentives are to defer purchases, if possible, which lower economic activity overall.
Re: El Salvador abandons Bitcoin as legal tender
#668Do pro-bitcoin people still talk about goals of bitcoin being a currency that people use daily? I don't follow it closely, but that idea seems to have faded and now it's just an asset to buy and hold while it magically goes up forever.
I literally use USDT daily. Use it to pay for food delivery, for a massage or a manicure, or exchange it for cash delivered to my home. Literally 90% of my spending goes through it.
USDT isn't Bitcoin.
Re: El Salvador abandons Bitcoin as legal tender
#669Earlier quoted context omitted.
A house in 5-10 years is nice, but it doesn't stop me from starving to death today.
I think it was just an analogy. The incentives are to defer purchases, if possible, which lower economic activity overall.
Sure, my point was that there are many reasons someone might spend money today that might be better off saved for the future, however much it may increase in value.
Re: El Salvador abandons Bitcoin as legal tender
#670Earlier quoted context omitted.
Are you able to point to a single case where Bitcoin was used as legal tender in an every day business transaction? By this I mean, can you give an example where someone ordered a cup of coffee with Bitcoin directly and not through a proxy?
100% this. Food, medicine, transportation, education, and everything else at or near the bottom of Maslow's pyramid of needs still cannot be directly purchased with bitcoin. The other punchline to the Bitcoin joke is that it's finite. In 120 years it will begin to evaporate from existence as more and more wallets are simply lost to time.
What? People buy food with bitcoin all the time …