We know how that is supposed to end after “then they fight you” but that is only one of 4 scenarios that could play out.
First, let’s look at who is attacking El Salvador with words. A lot of people who should not care a damn about a country that represents 0.02% of global GDP, have used up their PR bandwidth to attack El Salvador:
– Bank of England Governor Andrew Bailey expressed concern for the people because of Bitcoin’s price volatility.
– The International Monetary Fund issued an official statement warning El Salvador against using bitcoin as official tender.
-Hillary Clinton Issues PR yielding headlines such as Bitcoin ‘Undermining The Dollar’—Hillary Clinton Issues A Surprise Crypto Warning As El Salvador Helps The Bitcoin Price Suddenly Surge
What has got these big establishment figures so worried is the nightmare that El Salvador’s decision may prompt other countries with failed Fiat currencies to follow their lead. The first might be countries whose own Fiat currencies failed who then adopted the US dollar as their currency (such as Ecuador and Panama).
Of course it can all end in tears if Bitcoin fails; that is one of 4 scenarios that could play out.
One thing that worries these big establishment figures is that El Salvador’s Nayib Bukele presents very well in the media. He is young & handsome, appears sincere, intelligent and willing to take smart calculated risks to put money in his people’s pockets. For example he articulates very well why money printing stimulus in America has positives for American people with negatives around inflation. Other countries that use US dollar have only the negatives ie no stimulus checks for El Salvador’s people.
There are 4 scenarios:
Scenario 1: and then you win. Bitcoin fans assume this scenario.
Scenario 2: a war of words turns into real war as the US does an Allende (replace an elected leader in a coup).
Scenario 3: a deal is done. For example the US could say if you commit to USD, your people will receive stimulus funding. It is not El Salvador’s job to save Bitcoin
Scenario 4: Bitcoin fails and a newly elected government in El Salvador reverses the decision to make bitcoin legal tender.
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Go to Publisher: Daily Fintech
Author: Bernard Lunn