El-Salvador will be adopting Bitcoin as a legal tender at 3 pm on September 7th. The news is to cheer amongst BTC and crypto enthusiasts across the globe. El-Salvador had made announcements of adopting BTC as a legal tender in early June, with the predictions of improved investments, tourism, innovation, and economic development for the country.
Consequently, an idea is proposed by El-Salvador to implement Bitcoin mining using renewable energy from volcanoes. According to the bill, the use cases of Bitcoin would be similar to fiat, including paying taxes. However, citizens would have the liberty to choose their mode of payment.
El-Salvador is readying the necessary infrastructure for Bitcoin to implement in the country, by rolling out 200 BTC ATMs and kiosks. Following the announcements, the coin saw a rise of about 5-6% in prices. El-Salvador president has also encouraged bitcoiners with the perks that the country has to offer, through his social media handle.
To celebrate, Reddit community of more than 3 million members, to buy $30 worth of bitcoin each, on account of Brazil’s independence day. The mass movement is as a supportive gesture to El-Salvador and not a pump, mentions a user.
Impact of The Consequences on BTC Price
As the Reddit community has a huge mass following, the mass movement can bring in a massive difference in the acceptance of BTC in El-Salvador. Going by the math, the purchase is expected to be over $90 million, adding to the existing daily trading volume range of $32-40 billion.
Consequently, this might propel other investors to buy the coin, resulting in a healthy leg-up of BTC’s prices. If things fall into place, El-Salvador’s legal acceptance of Bitcoin might bring a head start to the next bull run.
Summing up, It is also worth mentioning that Bitcoin may also bring impetus to the nation’s economy. It could empower citizen’s purchasing power & increases the import of goods. Also, it eliminates loopholes in FIAT by increasing foreign investments. Moreover, migration to El-Salvador could accelerate as a notable growth in the economy could be in place. As Bitcoin can act as an inflation hedge.
We can expect a price rally in the range of 4-6% post El-Salvador’s bill amendment. The BTC price is about $51,786.84 & the trading volume for the past 24 hours is $32 billion at press time.