There is a book called "Talking to your daughter about Economics", where the author explains one of the problems with bitcoin is, you cant print more of it in a crisis. Maybe thats what happened here.
That may be one of the problems with bitcoin as legal tender and official state currency but not a problem with Bitcoin itself, quite the opposite: as evidenced by the genesis block’s embedded message: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”
Ironically part of the long-term problem was El Salvador's dollarization, also preventing them from printing in a crisis (that crisis being the COVID pandemic).
Dollarization was unpopular at first in El Salvador but after 24 years of dollarization, and both right and left wing governments, there are are no official plans of rolling it back. It's way too convenient to use the world's most used currency as our everyday currency.
isubkhankulov|1 year ago
cle|1 year ago
el-salvador|1 year ago