How does the crypto bull run favour El Salvador?

[Fidelia]

El Salvador was the first country to fully accept Bitcoin as a legal tender. Many other countries of the world attacked them and threw shades at them.

Now, the crypto bull run has happened. What benefits does El Salvador have to practically gain from taking that bold step to recognize and accept crypto?

 

[Webster]

Say whatever you want about El Salvadoran Pres. Nayib Bukele but he took a major risk when he designated Bitcoin as legal tender alongside the country's native currency (ironically, the country had all but scrapped its' own currency in the early 2000's for the U.S. dollar)....and apparently, it has paid off to some extent.

They have one of the lowest disparities in income inequality of across non-First World country and the country's BTC holdings are somewhere in the range of 77-80 million USD (they still use the U.S. dollar; Bitcoin is a legal currency alongside it).

Bitcoin in El Salvador - Wikipedia

en.wikipedia.org

 

[King Belieal]

El Salvador has made $206 million gain from their bitcoin holdings. Just imagine that gain margin. They didn't have to produce anything or sell anything and they have such injection into the economy.

 

[magnus2022]

El Salvador was the first country to fully accept Bitcoin as a legal tender. Many other countries of the world attacked them and threw shades at them.

Now, the crypto bull run has happened. What benefits does El Salvador have to practically gain from taking that bold step to recognize and accept crypto?

If a country can not be able to feed her citizens and have enough to export to other countries, the countries income through bitcoin holding or oil exploration will simply lead to inflation and instablity.

 

[Suba]

After Bitcoin becomes a legal means of payment in El Salvador, when Bitcoin bullruns, the country's foreign exchange will increase, individuals exchange Bitcoin for USD or stablecoins and they will buy Bitcoin when the price falls.

 

[mrki444]

How they will respond when price go down again to 25 000$ ? Inflation will be over 50% in that case and it will happend very fast.

 

[King Belieal]

How they will respond when price go down again to 25 000$ ? Inflation will be over 50% in that case and it will happend very fast.

I am sure the government would have to dollarize the economy if the price of bitcoin crashes to a bear run. That would give the country some forte against the inflationary effect. Their economy is already dollarized. It is to push for more dollarization.