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El Salvador's crypto experiment ends in failure

(www.economist.com)
151 points jcartw | 6 comments | 09 Mar 25 21:58 UTC | HN request time: 0.001s | source | bottom
1. greyface- ◴[09 Mar 25 22:58 UTC] No.43314837[source]▶
Whether or not it's classified as legal tender going forward, Bukele has indicated that he intends to continue amassing Bitcoin as a reserve asset: https://twitter.com/nayibbukele/status/1897019629702410551
replies(1): >>43314921 #
2. dsr_ ◴[09 Mar 25 23:09 UTC] No.43314921[source]▶
High volatility is the thing that should be most avoided as a reserve.
replies(2): >>43315400 #>>43315765 #
3. ursuscamp ◴[10 Mar 25 00:16 UTC] No.43315400[source]▶
That really depends in your time horizon
replies(1): >>43315495 #
4. kinakomochidayo ◴[10 Mar 25 00:27 UTC] No.43315495{3}[source]▶
Which is ironic, considering how Bitcoin security budget will very likely decrease as time goes on with Bitcoin halvenings and low transaction fees going to miners
replies(1): >>43315783 #
5. toomim ◴[10 Mar 25 01:04 UTC] No.43315765[source]▶
Not if the "volatility" is in the upward direction.
6. toomim ◴[10 Mar 25 01:06 UTC] No.43315783{4}[source]▶
It's already about 1000000x higher than it needs to be. Keep in mind that all it does is prevent double-spends.

There are other ways to avoid double-spends, too, like taking the party to court.

Mining does not need to be incentivizes nearly as much as it is right now for bitcoin to still function as p2p cash.