A few years ago, I embarked on a series of posts delving into the theme of "the war on Bitcoin." The metaphorical title reflected the intense scrutiny and opposition Bitcoin faced at that time. Fast forward to today, and the landscape is shifting. The once fierce war on Bitcoin is gradually fading into the background, making way for the anticipated adoption of BTC as a new asset class and a viable currency of exchange.
Leading the charge in embracing Bitcoin at a state level is El Salvador, a country that has been making waves in the crypto space. Thanks to the visionary leadership of its dynamic president, El Salvador officially recognized Bitcoin as legal tender in September 2021. Beyond this groundbreaking move, the country is actively involved in the Bitcoin volcano project, leveraging volcanic energy for mining Bitcoin and introducing innovative financial instruments like Bitcoin bonds.
A recent development caught my attention on Twitter: "El Salvador's new law grants citizenship to foreigners donating Bitcoin to state-led social and economic projects." This news brought a smile to my face, a testament to my admiration for Nayib and his forward-thinking governance in El Salvador.
Shifting our focus to Argentina, where Javier Milei has assumed the presidency. Even before his official election, Milei made a bold promise—to eliminate the central bank of Argentina. Such a move, if successfully executed, would undoubtedly go down in history. Argentina has long grappled with rampant inflation, and Milei's tenure witnessed the peso's value plummet by an additional 50%.
In the midst of economic turbulence, it appears that Argentinians are increasingly turning to alternatives. Bitcoin and USD are becoming preferred options for everyday transactions. Drawing parallels, in Romania, we often lean towards the EURO due to its stability in holding value compared to our national currency. However, Argentina is taking a more proactive stance, adopting digital currencies to navigate away from an impending financial catastrophe.
"We ratify and confirm that in Argentina contracts can be agreed in Bitcoin," said Diana Mondino, Argentina's new Minister of Foreign affairs, adding:
"And also any other crypto and/or species such as liters of milk. Art 766. - Obligation of the debtor: The debtor must deliver the corresponding amount of the designated currency, whether the currency is legal tender in the Republic or not."
Following the election of Javier Milei, Argentina plans to move towards an economy that does not have legal tender laws.
Citizens, businesses and the government will eventually be able to accept any currency, or indeed asset, in a monetary free market competition with this process already beginning in regards to government contracts.
This news is like a melody to my ears. I've reiterated on my blog countless times, and I'll reiterate it once more: I'm not opposed to cash, digital currencies, or any other form of monetary exchange. My advocacy lies in embracing diversity, firmly believing that the coexistence of various means of exchange represents a pivotal step forward in our societal evolution.
Confining ourselves to the notion that Central Bank Digital Currencies (CBDCs), the USD, or Bitcoin should exclusively dictate our financial dealings is detrimental. It hinders our exploration of the vast potential within our society. Why shouldn't one be able to pay for groceries with Bitcoin, HBD, dollars, yen, or even IOUs? The current trend of "buy now, pay later" in America attests to a shifting financial landscape, driven by diminished consumer purchasing power amid soaring global inflation levels.
The rationale behind Argentina's bold move, in contrast to America's apparent complacency, lies in the perception that "America is fine." While economies worldwide grapple with inflation-induced reductions in purchasing power, Argentina's proactive stance is driven by a sense of urgency.
A burgeoning sentiment in the crypto sphere, currently taking shape, is that only during periods of extreme desperation will certain nations embrace Bitcoin. Otherwise, they remain ignorant of its potential. El Salvador, for instance, might not have embraced Bitcoin as fervently if its economy mirrored that of Germany.
The present bull market is poised for potential explosive growth in the coming months (or even years), propelled by numerous catalysts. Despite recent substantial gains in coins like RAY, a coin endorsed by @sapphirecrypto on Hive, this marks merely the inception for altcoins. While Bitcoin may take a breather, experiencing a surge once ETFs gain approval (likely in early January), it's the altcoins that hold the promise of substantial wealth.
The prevailing sentiment is undergoing a transformation, markedly different from a year ago (with notable mentions of LUNA, FTX, and bank collapses in the US). This shift is a positive indicator for the ongoing bull market. However, it's essential not to be swept away by the wave, as history dictates that a severe bear market inevitably follows periods of extreme euphoria.
Thanks for your attention,
