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El Salvador abandons Bitcoin as legal tender

(ticotimes.net)
927 points smallerfish | 2 comments | 04 Feb 25 00:00 UTC | HN request time: 0s | source
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portaouflop ◴[04 Feb 25 02:07 UTC] No.42926658[source]▶
IMF 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.

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I dislike cryptocurrencies as much as the next guy but this was clearly something else than a failure of the currency itself

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dragonwriter ◴[04 Feb 25 04:41 UTC] No.42928058[source]▶
If you need to go to the IMF for a loan of ~3% of your GDP to mitigate the risks associated with Bitcoin, well, that's a pretty good sign that adopting Bitcoin as legal tender was a pretty disastrous failure.
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willmadden ◴[04 Feb 25 05:43 UTC] No.42928498[source]▶
What are you talking about? Their Bitcoin holdings more than doubled in value.
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hagbarth ◴[04 Feb 25 06:15 UTC] No.42928708[source]▶
Would that not be a bad thing when using it as legal tender? Deflation tends to be disastrous for the economy.
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floydnoel ◴[04 Feb 25 12:56 UTC] No.42931726[source]▶
deflation is fine for an economy. inflation is disastrous for an economy. the people in charge of the money printers are trying to keep you confused. don’t buy it.
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llamaimperative ◴[04 Feb 25 13:00 UTC] No.42931768[source]▶
LOL

I have $1,000.

I believe that tomorrow, my $1,000 will be worth $2,000.

Why would I ever spend my money?

Hence, economy freezes.

This is so plainly obvious to everyone except crypto zealots I literally gasped seeing your comment.

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1. loophole27 ◴[04 Feb 25 14:21 UTC] No.42932662[source]▶
Because I need to buy food, clothes, pay rent, and replace my laptop that just died.

And I need to do this today or i’ll starve on the street.

I could delay buying a new laptop, but that’s a personal preference. I still need one at some point.

That’s why I would spend my money, because there are things I need or want.

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2. llamaimperative ◴[04 Feb 25 16:13 UTC] No.42934284[source]▶
Right, you'll spend the absolute bare minimum and proactively invest approximately never.

This is bad.

In fact, you'll only ever invest in highly speculative investments because they're the only things that might possibly justify the opportunity cost of your currency just accruing value.

This is bad.