After El Salvador, Bitcoin is expected to take “huge steps” – an analyst expects it will become a “viable alternative” to fiat currency.
After El Salvador formally recognized Bitcoin as legal tender, a crypto specialist believes the flagship cryptocurrency still has a bright future ahead of it.
The acceptance of Bitcoin by mainstream institutions is a strong sign of the cryptocurrency’s growing popularity. BTC and other virtual tokens have long been linked to drug trafficking and other illegal activity on the internet’s darkest corners. El Salvador’s Congress authorized plans to use Bitcoin as a form of payment this week, which was hailed by trade analysts and cryptocurrency dealers around the world.
Within the next 90 days, Bitcoin will join the US dollar as legal money alongside El Salvador’s official currency.
This is simply the first of many “major leaps” for Bitcoin, according to Paolo Ardoino, CTO of Hong Kong-based crypto exchange Bitfinex.
The decision, according to the expert, has emphasized bitcoin’s validity as a fiat currency alternative.
President Nayib Bukele claimed before El Salvador’s congress voted on the BTC adoption that it will help the country’s economic development by bringing in tourists, investment, and innovation.
The digital token was then approved by a “supermajority” of 62 votes out of 84 cast.
“Bitcoin being accepted as legal cash by El Salvador represents what we’ve been saying all along: bitcoin has utility and is a viable alternative to fiat currencies,” Mr Ardoino added.
“As digital currencies become more widely adopted, I believe bitcoin will take significant steps forward.
“This is a watershed moment for humanity’s financial independence and a watershed moment for bitcoin.”
The announcement sparked a strong reaction in the crypto markets, with bitcoin’s price rising on Wednesday and Thursday.
According to Coindesk data, BTC reached a temporary high of more than 26,816.22 ($38,000) per token early on Thursday, June 10.
The token is now trading at £25,925.72 ($36,725.32) as of 7.26pm on Thursday.
El Salvador’s plans, however, were insufficient to make up for the losses suffered in the previous two months.
BTC has been battling to retain its momentum since reaching an all-time high of £45,765.23 (£45,765.23) in mid-April.
Bitcoin, like all cryptocurrencies, is incredibly volatile, and it’s impossible to predict where the price will go tomorrow.
The Financial Conduct Authority (FCA) of the United Kingdom considers all cryptoassets to be an all-risk investment due to the market’s intrinsic volatility.
“If you invest,” the FCA warned. “Brinkwire Summary News.”