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Steve Hanke Shares Details of Why Bitcoin Adoption Is Nightmare for El Salvador’s Economy

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Mon, 10/11/2021 - 08:05
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Yuri Molchan
Steve Hanke is again picking on Bitcoin, this time saying that El Salvador is having a hell of a time trying to integrate BTC into its economy
Steve Hanke Shares Details of Why Bitcoin Adoption Is Nightmare for El Salvador’s Economy
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Steve Hanke, a prominent economist and vocal opponent of Bitcoin and cryptocurrencies in general, believes that the adoption of Bitcoin has been very difficult for El Salvador's economy. Here's why.

"BTC is a nightmare for El Salvador's economy"

In his recent tweet, Steve Hanke has bashed Bitcoin once again, stating that Salvadorans and El Salvador's economy are having a hard time integrating BTC payments into their economy and financial system.

In particular, according to Hanke, users are facing technological problems and are losing money on a daily basis. As for the losses to the economy, the expert says, the country's creditworthiness has also been damaged: El Salvador's bonds have been going up and down for over a month now.

On Sunday, the economist again slammed Bitcoin, posting a meme about a dog that is only "sometimes friendly," again tweeting about BTC's high volatility and its speculative nature.

This is not the first time Hanke has posted negative tweets about Bitcoin, pointing out its volatility and claiming that its fundamental value equals zero and it is vulnerable to fraud.

He often criticized Bitcoin, posting memes similar to Tesla CEO Elon Musk, who, however, uses them to support crypto: Dogecoin and Bitcoin. After April, however, Musk announced that Tesla would stop accepting BTC for controversial reasons related to the carbon footprint of proof-of-work (PoW) mining and promising to allow BTC payments again as soon as Bitcoin miners switch to green energy at least 50% of their operations.

According to Michael Saylor, CEO of MicroStrategy and head of the Bitcoin Mining Council, that target has already been achieved.

Related
Bitcoin Had Massive Dip on Bitstamp Before Hitting Highest Level Since Early May

Whales acquire 85,700 BTC, hold 21.3% now

According to a tweet posted by Santiment on-chain data producer, large BTC wallets (holding between 100 and 1,000 BTC) bought more Bitcoin over the past two weeks.

The amount of crypto accumulated by them on the dip totals approximately 85,700 Bitcoins. That is the equivalent of an astounding $4,863,243,610 in fiat. Back then, the world's flagship cryptocurrency was trading below the $50,000 level, surging above this mark only briefly to hit the $52,536 high on Sept. 7. After that, BTC was ranging in the $41,000 area.

At the moment, these small and mid-sized whales are holding 21.3% of the total Bitcoin supply.

At press time, Bitcoin is changing hands at $56,829, according to data provided by CoinMarketCap. Earlier today, BTC surged from $54,700 above $56,000. The leading crypto managed to surpass the $52,000 level on Oct. 6.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.