Bitcoin’s first day as El Salvador’s legal tender

Re:Bitcoin’s first day as El Salvador’s legal tender by nuclearnice1 on Wednesday September 08, 2021 @08:16AM (#28455965)

I think it has to do with the connections to other currencies. If you sell something priced in Bitcoin, that you acquire in dollars, you’re exposed to that volatility.

Say you sell gold retail. You collect Bitcoin. Then turn around and need dollars for buying more gold.

Same situation for any import really.

It also applies to debt. If your debt is denominated in dollars and you’ve been collecting and saving Bitcoin when Bitcoin surges vs the dollar debt is less of a burden. And vise versa. Similar to the sort of problems emerging markets dollar denominated debts have faced many times.

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Re:Bitcoin’s first day as El Salvador’s legal tender by q1w2 on Wednesday September 08, 2021 @04:08PM (#28462380)

Exactly. If I am from Turkey, earn a Turkish Lira for salary, and pay for stuff locally in Turkish Lira, you might be tempted to think that currency exchange moves don't impact me.

That would be very very wrong, and one trip to any store would immediately wake you from that fantasy.

Supply chains are global. Local prices are based on the GLOBAL costs and global exchange rates.

Stability is critical. A small business will die with Bitcoin level volatility. Their margins might be 5%. A 15% shift in prices will drive them bankrupt in a day.

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