Bitcoin's globally and widely accepted growth got a big boost last week when it officially became legal tender in a sovereign state for the first time. The South American nation of El Salvador has argued that Bitcoin is an important part of its economy, even claiming it could mine cryptocurrency using volcanoes!
The change in El Salvador means that investors will be forced to accept BTC as payment for all goods and services. After El Salvador, lawmakers in other countries have expressed a desire to do the same.
If this trend continues, many countries may soon need to acquire and hold BTC in their reserves to trade with other countries. Countries that are particularly opposed to the US dollar standard can start adding and using BTC as a fair standard measure for world trade and trade.
This aversion to the dollar, and a preference for cryptocurrency, has already been noticed, mainly by countries facing US sanctions, such as Iran.
While it doesn't seem like a big deal for now, when other larger countries like Brazil, which have expressed a desire to make BTC legal tender in their country, decide they want to pay in BTC from their global trading partners, it becomes necessary to countries to carry out BTC for world trade.
This could turn into a huge movement where wealth is being transferred from non-coiners to BTC coiners. He is very optimistic about medium and long term BTC. This solidifies BTC's position on the world stage and any country that has planned to ban BTC and cryptocurrency will now have to rethink its position, he says. Kim Chua, PrimeXBT analyst.
Interestingly, even with this big news reported positively for the cryptocurrency space, there hasn't been much of a shift from Bitcoin, even though the trend seems to be slowly returning to another upside.
About Kim Chua, Principal Market Analyst at PrimeXBT:
Kim Chua is an institutional trading specialist with a successful track record spanning major banks including Deutsche Bank, China Merchants Bank, and others. Over time, Chua has launched a hedge fund that has consistently produced triple-digit returns for seven years.
Chua is also an educator at heart who has developed her trading curriculum to pass her knowledge on to a new generation of analysts.
Kim Chua closely follows traditional and cryptocurrency markets and is eager to find future investment and trading opportunities as the two very different asset classes begin to converge.
