New ATH For Bitcoin While Salvadorians See Wealth Grow

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Bitcoin reached a new all time high of $67,000 in the past day as analysts put in ever higher end-of-year target prices. Meanwhile over in the Americas, the residents of El Salvador, mocked in the beginning for their acceptance of Bitcoin as legal tender, are now seeing their wealth grow.

pic.twitter.com/pCO0wNNZtz

— Elon Musk (@elonmusk) October 21, 2021

When it was finally time for El Salvador to introduce Bitcoin as legal tender, the world media was quick to point out that Bitcoin fell some 9% on the first day. Hoping that this would be the end of the story, they then turned against President Nayib Bukele, calling his plan ludicrous. As Bitcoin is about to break its all time high about a month later, few are laughing now. The only smiles to be seen are on the faces of the people of El Salvador who are able to see their Bitcoin investment grow on a weekly basis.

Salvadorians are increasingly investing in Bitcoin to protect themselves from inflation. While the US dollar faces a 5% inflation rate this year, Bitcoin knows no such thing as supply is fixed at 21 million coins. The government of El Salvador, who introduced Bitcoin as legal tender when it traded at around $40,000, has thus increased the net wealth of all citizens who had purchased Bitcoins by about 50% in only a month.

LMAO we live in a world where El Salvador was able to front run the Bitcoin ETF

— Pomp 🌪 (@APompliano) October 15, 2021

These figures seem to show a positive development in the sentiment of Salvadoran citizens in Bitcoin. The legalization of the latter initially met with strong opposition from some Salvadorans. A Bitcoin ATM was even burnt down during a protest.

Diaspora

The authorities, however, continued their efforts to encourage the adoption of Bitcoin by its citizens, despite these internal opposition to which are added threats from rating agencies or warnings from both the UN and the IMF.

Salvador has even gone so far as to install 50 Chivo (the local crypto wallet) vending machines for the Salvadorian diaspora in 10 cities in the United States. El Salvador’s rulers are also offering discounts of 20 cents of the US dollar on every gallon of fuel paid in Bitcoin to encourage citizens to adopt Bitcoin.