Mumbai: The price of bitcoin, the world’s largest cryptocurrency, crashed after El Salvador became the first country in the world to accept bitcoin as legal tender on Tuesday.
Bitcoin plunged 17% to its lowest level in over a month amid faltering news of El Salvador’s crypto rollout, now trading at $46,935 on Thursday evening.
What is happening in El Salvador is a massive economic experiment, and the results of this monetary experiment will have implications for the whole world, believes Utkarsh Sinha, managing director of Bexley Advisors.
“It implies that countries cannot control their fiscal and monetary policy. I think otherwise because I am of the view that each country should control its fiscal and monetary policies to protect the economy from any shocks. If we take bitcoin as the official currency of El Salvador. The currency GDP to currency ratio in El Salvador comes to 0.07%, compared to an average of over 10% in other countries, the government’s ability to fight or recover from a setback. reduces the capacity,” Mr Sinha told ABP News.
According to Sharan Nair, Chief Business Officer of Coin Switch Kuber, India’s largest crypto platform with 10 million registered users, El Salvador, accepting bitcoin as legal tender is a momentous moment for the crypto industry.
“The world is moving to accept bitcoin in various forms. In the US, it is treated as a commodity, while in India, there is debate about accepting it as an asset class or commodity. El Salvador is a poor country, and the big challenge will be to see how the masses adopt bitcoin with fewer smartphones and internet access,” Mr. Niyar told ABP News.
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