BTC’s Volatility Forces El-Salvador to Misery!

BTC’s Volatility Forces El-Salvador to Misery!
  • BTC plunges to extreme lows.
  • BTC bear directly affects El-Salvador’s economy. 
  • El-Salvador’s government bonds drop from 75 cents to 36 cents!

We are now currently at the very second day of the second crypto market crash for the year 2022. True to the fact, compared to day one, the second day is literally even worse. Furthermore, Bitcoin (BTC) has even dropped below $35K. Currently, BTC is trading at $34,417.51 at the time of writing. Also, taking into consideration the past 24 hours, BTC has dropped about a whopping 11.55% down the graph. 

With all disasters prevailing upon the crypto industry, yet another issue arises, erupting an entire nation. Yes, the world’s first country to make BTC as its legal tender, El-Salvador, now suffers miserably due to BTC. 

Sufferings of El-Salvador

The current market crash and BTC plunging down have adversely affected El-Salvador. Once making the BTC legal tender, the entire country is forced to accept the system. Moreover, being directly linked with BTC, as BTC plunges down, so does all depend on it. This directly affects the financial economy of the nation.

In spite of this, the entire nation’s government bonds are on the decline. Accordingly, the bonds have dropped from 75 cents to 63 cents from November 2021 to January 2022. However, it dropped down abruptly overnight to 36 cents!

Besides, according to statistics, the entire economy of El-Salvador is down by more than four times. 

Apart from BTC’s extreme volatility, another major reason for such an economic crisis for El-Salvador accounts to the people’s utility of BTC. According to a survey report, about 9 out of 10 random people in El-Salvador have no idea what BTC is, how digital currency works, or even what a digital wallet is! 

The Mad President

On the other hand, the President of El-Salvador, Nayib Bukele is currently being termed as ‘A Mad Man’ among the financial and the economic world. His views and idea with BTC as the major criteria is rather being considered as a cringe now. 

With the entire nation in such an economic crisis, the mad President, Nayib Bukele is said to be persistently following up with the International Monetary Fund for a credit loan of $1.3 billion! This is said to be for the development of Bitcoin City! Despite all this, El-Salvador now once again buys BTC upon the second day’s dip, adding an extra 410 BTCs.

A Project Engineer by profession, a writer by passion. Especially into the critics and skeptics on cryptocurrency. His fascination towards the crypto world and his personal experience on it has made him a writer with a taste.