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El Salvador abandons Bitcoin as legal tender

(ticotimes.net)
927 points smallerfish | 1 comments | 04 Feb 25 00:00 UTC | HN request time: 0.343s | source
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ggm ◴[04 Feb 25 00:12 UTC] No.42925329[source]▶
Speculative asset class fails as non-speculative legal tender class.

If king for the day with a sovereign wealth fund I wouldn't forbid investment choices like this on risk grounds, I mean you need risk assets as well as boring ones, right? But I have problems with the moral quality: it's like state investing in the casino business. Monaco? works fine. Anywhere else? It's got problems.

Like a lot of people, I probably fall into severe errors which would be bread and butter for "bad economics" reddit groups but truly, I can't see how this wasn't forseen and expected. It was about WHEN, not IF.

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breadwinner ◴[04 Feb 25 01:13 UTC] No.42926053[source]▶
Speaking of Sovereign Wealth Funds...

Trump Calls for Wealth Fund in Executive Order https://www.nytimes.com/2025/02/03/us/politics/sovereign-wea...

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slashdev ◴[04 Feb 25 01:19 UTC] No.42926136[source]▶
Wouldn’t they need to balance a budget first?

Not in my lifetime

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nyokodo ◴[04 Feb 25 01:37 UTC] No.42926325[source]▶
> Not in my lifetime

Were you alive in the mid to late 90s? A string of balanced budgets and surpluses. There are new problems and no dot com bubble right now but most Americans were alive the last time we had balanced budgets. It is quite possible.

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1. slashdev ◴[04 Feb 25 23:01 UTC] No.42940408[source]▶
I remember it well.

It was possible. That’s not the same as saying it is still possible at this debt level with the massive shortfalls in social security and other entitlements.

I do not think it’s possible without also seriously eroding the debt burden through sustained higher inflation. That horse has left the barn.