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Can bitcoin become a national currency?

Since yesterday El Salvador has become the first country in the world to accept bitcoin as a currency, but it did not go as hoped

Can bitcoin become a national currency? Since yesterday El Salvador has become the first country in the world to accept bitcoin as a currency, but it did not go as hoped


In early September, Bitcoin's value climbed from $ 43,000 to cross the $ 50,000 mark driven by news of the announcement of the El Salvador government, which became the first country in the world to make the original crypto asset a national currency alongside the US dollar. Since yesterday, on the day of the actual entry in force of the coin, the price of Bitcoin has been falling to $ 46,576, after going on the swing, soaring above $ 52,000 and then deflating to $ 47,000. El Salvador is the first country in the world to legally accept a cryptocurrency and the event represents an experiment on how Bitcoin can be used in the real economy by developing countries.

A question that Bitcoin observers are asking is how to value crypto, given that lately the rise is linked to movements and speculations of large investors - the so-called whales - who then pull the other cryptocurrencies. An article by Il Post summarized the main problems in making Bitcoin a state currency, all related to the volatility of value: the calculation of taxes, the stability of economic growth, money laundering, and inflation. In general, the El Salvador experiment will probably not be the victory hoped for by President Bukele, but it certainly represents an important building block in the path of institutionalization and integration of cryptocurrencies in the world economy.


The fluctuation of cryptocurrencies is influenced by people like Elon Musk and Cathie Wood founder of ARK Investment Management who, through a tweet or an interview, manage to completely swing their value. Elon Musk, for example, who announced a 1.5 billion investment in Bitcoin had immediately increased the value of the digital currency. After a few months with the announcement of the stop to Bitcoin as a means of payment for Tesla cars, because they are a source of pollution, the value immediately collapsed. Through a tweet, he managed to push on the "Bitcoin Mining Council" whose goal is to promote transparency of the use of energy and accelerate initiatives in favor of sustainability worldwide. To answer the questions about sustainability, cryptocurrencies are emerging that will reduce emissions related to new transactions and "mining" such as Chia Coin.

Various companies around the world are starting to move into the industry, looking for ways to keep up with the times. In the fashion world, for example, Philipp Plein, the German entrepreneur, and designer has announced the possibility of buying his luxury products with cryptocurrency, the designer believes that "crypto is the future, and it is necessary to change the system to adapt to this new type of currency.”
Other fashion companies are moving in this direction, for example, Louis Vuitton, Burberry, and Rimowa are releasing their NFTs (non-fungible tokens) unique and non-interchangeable digital assets. Digital fashion start-up DressX has also moved into NFTs through a collaboration with, releasing a limited edition collection, available exclusively to owners. Through this partnership, an increase in the value of the digital asset itself has been achieved, with a model whose content is valuable and protected for the owners. 

Cryptocurrency as universal and decentralized can represent the change in the future of payments. However, the current volatility of Bitcoin increases the fluctuation of values ​​creating a ping-pong of instability.