A Week After Bitcoin Became an Official Currency

By Elena Obukhova, founder & CEO at FAS | Fintech Advisory ServicesThe historical day when Bitcoin became an official currency in El Salvador and official foreign currency for the rest of the world started with Bitcoin price correction. Correction is never a new thing for the crypto community. However, this time majority of crypto people took it as a personal offense and an orchestrated attack on Bitcoin.Nayib Bukele, a president of El Salvador, said on his Twitter, “El Salvador just bought 200 new coins. We now hold 400 #Bitcoin,” referring to a discount on the market in his follow-up posts. On Tuesday (8th), they were already holding 550 Bitcoins.The whole global crypto community was watching El Salvador on this historical day. On the 7th and during the following days, people were going to large chains like Starbucks, McDonald’s, and different local shops to pay with Bitcoin and post it on their social media. The Crypto community was filled with excitement, I could see it from my Twitter.There were also some opposed movements before and after Bitcoin officially became a legal tender. Some people were claiming that they will be paying for this reform with their taxes. There were multiple protests happening in the country.Volatility is a relative termI always say that volatility is a relative term. Currency can’t be volatile if we don’t compare it to anything else. Imagine if all world prices, salaries, and settlements were in Bitcoin. Would it be volatile then? However, when it comes to the global market, purchasing goods from outside of the country, and conducting business in foreign currencies, the volatility of the national currency can cause a harmful effect on the businesses. Especially when it comes to small businesses and micro-merchants.Until now, Bitcoin is not the only official currency in El Salvador, as…