July 1, 2022

Bitcoin use drops 89% in El Salvador

Since the announcement of El Salvador’s official adoption of Bitcoin as a legal species in September, Nayib Bukele has amassed around 1,300 BTC. However, according to recent estimates, Bitcoin transaction rates in this Central American country have fallen to their lowest level in four months, with more than 85% of the population expressing waning enthusiasm for using BTC for trading. daily transactions.

Bitcoin usage drops 89% in El Salvador, 2022 looks bleak for Bitcoin

Image source: Ecryptobulls

Like Bitcoin usage drops 89% in El Salvador, 2022 looks bleak for Bitcoin. Mr. Cryptowhale, one of the most controversial crypto experts, made the remark on Twitter, saying the world’s top cryptocurrency would lose its legal tender due to “high transaction fees, a long time ago. limited transaction “and” obsolete technology “.

More than two-thirds of Salvadorans are allegedly anti-Bitcoin, according to the analyst – a claim that has yet to be confirmed.

While transaction costs and latency difficulties affect not only Bitcoin, but almost all of the top ten crypto assets traded globally, Salvadorans have encountered particular issues with their government-approved Chivo wallet.

A list of impacted addresses was leaked on December 16 in a tweet, with nearly $ 100,000 of BTC allegedly taken out of consumers’ wallets. With nearly 3 million active Chivo users, it’s unclear whether Bukele will respond to these claims or attempt to compensate people for their losses.

El Salvador profits despite the growth of the repine

Nayib Bukele announced the availability of $ 4 million after Bitcoin’s all-time high in November and has since kicked off the first phase of a nationwide score of 400 standard school projects. Even though a significant portion of indigenous businesses remain skeptical of Bitcoin due to growing complaints, the country is close to completing its first veterinary hospital and is preparing to become a shining example of Bitcoin’s success, with more of $ 140 million hidden in his trust reserves.

Both the IMF and the World Bank have issued stern warnings, predicting a cloud of uncertainty that will drive investors away from the country’s economy due to volatility in cryptocurrencies.

Still have high hopes

Despite the avalanche of criticism directed at Bitcoin, Bukele has remained a steadfast believer in the future potential of the currency. Bukele was quoted as saying in a pre-Christmas tweet:

“The #Bitcoin experiment,” as it has been dubbed by international organizations, is nothing more than the world monitoring how mass adoption is affecting a country’s economy. It’s over for FIAT if it’s for the best. El Salvador is the start of the real revolution.

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Also read: Malaysia seizes 1,720 bitcoin mining machines


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