Please tell me your thoughts…
Discussion
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https://open.substack.com/pub/unseenfinance21/p/behold-the-story-behind-bitcoin-el
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Only time will tell if El Presidente will bow to the IMF or tell them to GFY. Looking at his twitter feed, I'm hoping for the latter.
If he continues on his path, El Salvador has nothing to worry about and will never ever need foreign aid again. In fact, your country will be among one of the wealthiest countries on this planet. Right next to the Emirates and Switzerland. So let's hope that he has los cojones para mandar el IMF a la calle!
Informative. I skimmed it briefly since im working atm.
What are the authors credentials?
He’s making some bold assertions.
The story of **Bitcoin, El Salvador, and the IMF** is one of financial sovereignty, economic disruption, and global pushback. It’s a tale of a small nation’s bold experiment with Bitcoin as legal tender, the resistance from powerful global financial institutions, and the broader implications for monetary freedom.
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### **1. El Salvador’s Bitcoin Adoption: A Historic Move**
On **September 7, 2021**, El Salvador became the **first country in the world to adopt Bitcoin as legal tender**, alongside the U.S. dollar. President **Nayib Bukele** spearheaded this unprecedented move, arguing that Bitcoin could:
- **Boost financial inclusion**: Over 70% of Salvadorans lacked access to traditional banking services.
- **Attract foreign investment**: A Bitcoin-friendly environment could draw crypto entrepreneurs.
- **Reduce remittance costs**: A large portion of El Salvador’s GDP comes from remittances sent by citizens working abroad, often facing high fees.
The government launched the **Chivo Wallet**, offering $30 in Bitcoin to every citizen as an incentive to adopt the currency.
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### **2. The IMF’s Opposition: Power Struggles Over Money**
The **International Monetary Fund (IMF)**, a global financial institution that provides loans and financial advice to nations, quickly opposed El Salvador’s Bitcoin experiment. It warned of:
- **Economic instability**: Bitcoin’s volatility could destabilize the country’s economy.
- **Financial integrity risks**: Concerns over money laundering and illicit transactions.
- **Sovereign debt issues**: El Salvador was seeking a **$1.3 billion loan** from the IMF, which Bitcoin adoption jeopardized.
The IMF **urged El Salvador to drop Bitcoin** as legal tender, but Bukele refused, doubling down on Bitcoin-related initiatives.
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### **3. Bitcoin Bonds & "Bitcoin City" – A Challenge to the Global Order**
To raise funds and bypass the IMF, Bukele announced plans for **Bitcoin-backed bonds** (nicknamed "Volcano Bonds" due to El Salvador’s geothermal Bitcoin mining). The country also unveiled a vision for **Bitcoin City**, a tax-free, crypto-powered metropolis fueled by volcanic energy.
This signaled a **new path for nation-states**—one where Bitcoin could serve as an alternative to **IMF-controlled debt**.
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### **4. The IMF vs. Bitcoin: A Bigger Battle for Financial Freedom**
El Salvador’s embrace of Bitcoin was more than an economic policy—it was a **direct challenge to the U.S.-led financial system**. The IMF, the World Bank, and Western financial institutions rely on **control over money supply** to maintain influence.
Bitcoin, being **decentralized, permissionless, and deflationary**, threatens this model. If more countries followed El Salvador’s lead, the IMF’s ability to dictate financial policies would weaken.
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### **5. The Outcome So Far: Resilience Amid Skepticism**
- El Salvador **continued accumulating Bitcoin**, using bear markets to buy more.
- Despite IMF pressure, the country **successfully repaid debts in 2023**, proving it was not reliant on IMF loans.
- The Bitcoin bonds project has faced delays but remains in development.
- Bitcoin tourism and investment in the country have increased, with Bitcoin adoption progressing slowly but steadily.
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### **Final Thought: A Precedent for Monetary Revolution?**
El Salvador’s bold move forced the world to ask: **Can a nation break free from the IMF’s grip using Bitcoin?** While challenges remain, El Salvador’s experiment has set a precedent for other nations to consider Bitcoin as a tool for **monetary sovereignty**.
The battle is far from over, but history may remember El Salvador as the first domino to fall in Bitcoin’s rise as a global financial standard.
Saw this post from nostr:nprofile1qy2hwumn8ghj7etyv4hzumn0wd68ytnvv9hxgqgdwaehxw309ahx7uewd3hkcqpqt8uhwv9ezlswf09u6efsnklww6l3m9pnnmzeqftvqdl4pl0mlv2qew37q8 after a jokey post about NOSTR CEO candidates.
What I find strange is that the author spends several paragraphs trying to justify how much they know, who they are and why they know what they are talking about.
They then spend the next few paragraphs explaining how little Bitcoiners know and how uninformed Bitcoiners are and how Bitcoiners are just influencers without experience.
They then go on to explain several extremely obvious things which even a six year old would understand as though it is scared.
They then go on to explain nothing.
A weird article filled with meta data denying space to any real knowledge or understanding.
So let me give a very simple and quick explanation that explains all the things the author clearly fails to understand.
1. Bitcoin was never really used as a currency in El Salvador, nostr:nprofile1qyghwumn8ghj7mn0wd68ytnhd9hx2tcpz4mhxue69uhhyetvv9ujuerpd46hxtnfduhsqg8c6ssjffewmzvfvfr6myf0glwhdtrtdnw3plsh3a0qft8745x55gpvx32y explored this in his recent visit to El Salvador
2. The Bitcoin reserve is just that, it is not meant to be spent.
3. The IMF loan is to provide infrastructure services that will enable the country to continue growing to a self sustaining level.
4. The IMF loan is going to be used to mine the $3T of gold:
https://www.mining.com/el-salvador-sitting-on-3-trillion-worth-of-unmined-gold-president-says/
This will pay back the IMF loan and create true wealth within the country.
Some of that wealth will then be used to buy or mine more Bitcoin.
Bitcoin won't be used seriously as a currency anywhere until the price settles.
My estimate is this will happen in 5 years, possibly 9 when Bitcoin reaches a price of either $6M a coin (non debt backed) or around $20M a coin if debt backed.
I wrote about that here:
https://habla.news/u/mhardcastle@nostrplebs.com/1732297906156
Nobody wants to spend money that is constantly appreciating in value, so everybody will spend fiat until the fiat is worthless and will then switch to Bitcoin once the price achieves parity with global wealth (and possibly debt).
El Salvador use Bitcoin as a tool, it is an incredible tool, but not as important as building a country.
If another tool, like an IMF loan and a huge gold seem are more useful, you will switch to that.
Bitcoin is important, but not as important as a country or its people or society. It is just a tool.