El Salvador has officially started recognising bitcoin as legal cash, offering people $30 worth of bitcoin each and paving the path for future adoption around the world. Global behemoths such as McDonald’s and Starbucks have begun accepting bitcoin in the country; who knows, perhaps they will do the same elsewhere in the near future.
On Monday, bitcoin began what many expected to be a bullish week by breaking beyond $51,000 for the first time since May 14, 2021, in the run-up to El Salvador’s official acceptance of bitcoin as legal cash. El Salvador’s president, Nayib Bukele, declared on Monday that the country had purchased its first 200 Bitcoins and that it would purchase a further 200 Bitcoins early on Tuesday.
El Salvador made bitcoin legal tender on Tuesday and began rolling out its Chivo wallet, ATMs, and kiosks across the country. Yes, a full country now accepts bitcoin. Local and international businesses in El Salvador began accepting bitcoin payments, with fast food behemoth McDonald’s and global coffee behemoth Starbucks joining the fray.
Dan Tapiero, CEO of 10T Holdings, also stated on Wednesday that “Bitcoin is going up to $400,000 or $500,000 and perhaps more.” The bitcoin bulls are getting stronger by the week.
This week was not without its share of bad news. On Tuesday, as El Salvador began to accept bitcoin as legal cash, the price of bitcoin fell over 17%, briefly reaching $42,900 before recovering and closing the day slightly below $47,000. Many have speculated that the precipitous dip was the result of a coordinated attempt by major parties to undermine El Salvador’s rollout and discourage other countries from following suit.
Overall, an entire country has made bitcoin legal tender and now HODLs bitcoin in its treasury, which will go down in history if bitcoin meets analysts’ projections over the next decade or two. Aside from El Salvador paving the way for others, Ukraine’s legalisation of bitcoin is a significant step forward, legitimising bitcoin as an asset and encouraging wider adoption.
With Standard Chartered joining the likes Bloomberg in anticipating a $100,000-plus objective for bitcoin in the near future, I prefer to take a macro view of the market rather than obsessing over the previous week and what’s to come in the next. Bitcoin still has a lot of space for development, and I’m still certain that a six-figure bitcoin isn’t far away.