The failed Bitcoin experiment that still runs
Bitcoin’s potential risks as a national investment and legal tender
have not yet materialized
said the IMF. Many saw this as a sign of warming up to the thought of El Salvadoran crypto policy. But why is it exactly that the risks have not yet materialized?
Very few uses it
Vast majority of the downloads happened in the first few months, when using the app was incentivised by the government, for example with a $30 sign up bonus. Even if there was a sudden drop in the price (which there has been many already), it still wouldn’t materialise any economic risks as there’s no impacting amount of people and money in Bitcoin, yet, in El Salvador.
Almost three years have passed, yet less than 20% of the population uses Chivo at all, not to mention regularly. Sub 10% of money transfers are made using Bitcoin.
