After El Salvador, Paraguay tries to officially adopt Bitcoin

Key facts:

The adoption of bitcoin as a legal currency in El Salvador has caused a great impact on the market.

Paraguay not only wants to legalize bitcoin, but also to promote mining with renewable energy.

Recently, two Latin American countries have been the focus point in the field of cryptocurrencies. One is El Salvador, which publicly proclaimed that it had adopted bitcoin as legal currency, making it the first country to grant this cryptocurrency legal tender status. But it did not all end there. Now Paraguay could be the second country to adopt this digital asset, which would undoubtedly cause a great impact on the global market.

The impact of Paraguay’s proposal to adopt bitcoin

A deputy from the Paraguayan congress presented a proposal to grant bitcoin legal tender status. This would support renewable energy mining, as well as other measures to turn Paraguay into the center of international cryptocurrency investments. Although there is still uncertainty about the proposal, at least one point was made clear: bitcoin’s influence is hard to ignore.

Positions are varied on this. Those in favor believe in the positive influence that the event has created. The population of El Salvador and Paraguay together is 14 million. Although it is small, it can provide direct advertising to bitcoin, increase the number of carriers and achieve a greater consensus.

This has positive implications for the decentralized development and global disclosure of bitcoin. Its impact will be much greater than the number of tens of millions if it is evaluated in the long term. In terms of combined money supply and ranking of market values, bitcoin has outperformed most of the world’s national currencies. At present, it is the fifth most used coin, behind the US dollar, the euro, the Chinese yuan and the Japanese yen.

According to data from a site dedicated to business asset records, bitcoin’s current market valuation of $ 653.3 billion places it in ninth place, second only to Apple, Microsoft, Saudi Aramco, Amazon, Alphabet, Facebook, Tencent and Tesla.

Bitcoin is ranked ninth as the most precious business asset.

As is evident, the influence of bitcoin can no longer be ignored. So much so that some countries are trying to adopt it as legal tender. As more people become its bearers and advocates, technical, economic and legal disagreements aside, perhaps more countries or economies will tend to embrace this cryptocurrency.

The other side of the coin: bitcoin naysayers

On the other hand, opponents believe that the legalization of bitcoin in a country can seriously impair economic development of the same. Due to the current Bitcoin network and technical weaknesses, it is very difficult for it to act as a payment method in daily economic activity, not to mention that its on-chain carrying capacity is too low to assume the role of currency. legal.

Regardless, after El Salvador’s announcement, Athena Bitcoin, a US-based bitcoin ATM maker, claimed that it planned to invest $ 1 million in El Salvador to install 1,500 ATM units, with in order to make the country the first bitcoin-powered economy in the world.

It should be remembered that it will be a path full of difficulties and challenges to make the population go from the traditional fiat currency system, to another with so much uncertainty and fluctuation, as is the case with bitcoin.

A neutral point of view on bitcoin

Unlike the 2 points of view mentioned above, which are a bit radical, there are more voices expressing their neutral attitude. According to them, bitcoin should not be considered as a means of payment, nor should it be equated to a technology, but rather as a great social experiment that advocates decentralization and equal rights, and also proposes a more rational way of distributing resources in response to an increasingly large and complex society. This digital currency offers more opportunities to distribute resources more efficiently, improving social productivity.

The impact of bitcoin globally is undeniable.

Although bitcoin has certain shortcomings, throughout human civilization, all innovations that result in transforming humanity have experienced questioning and denial. So it was with Tesla’s alternating current, Marconi’s radio and with the Internet in its initial stage, which today are already present in any corner of the planet. Similarly, we should give bitcoin more time and attention.

What to expect in the future from bitcoin adoption

10 years ago, very few people had heard of bitcoin. 5 years ago, only a part of the people know about bitcoin. 3 years ago, people started to know bitcoin. 1 year ago, a lot of people accepted bitcoin. Today, Paraguay proclaims to legalize the use of this currency. What will happen 2, 5 or 10 years later …?

We don’t know about the future. However, what we do know is that, currently, the number of addresses with non-zero bitcoin balances is close to 40 million, while the world population, according to the latest published data, is 7,262 million. This represents 0.55% of the population, assuming there are no duplicates of the 40 million addresses and one address per person.

Only 0.55% already demonstrates the enormous potential of this cryptocurrency. We have good reason to believe that bitcoin will not die., and it will eventually be accepted by the general public, we have faith in this. Of course, its price is going to rise beyond expectations.

Learn more about ViaBTC and all the services it has for you, such as its CoinEx exchange, its CoinEx Smart Chain and its ViaWallet wallet.

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