The World Bank refused to help El Salvador become the first country to accept Bitcoin as legal tender, as the president wants to get people to put their money in banks. More than 70% of El Salvador citizens’ savings are not banked, creating a heavily restricted money flow, thus damaging the domestic industries. With Bitcoin functions as the country’s legal tender alongside US dollars, people might start putting their money into institutions.
However, Bitcoin is far from a perfect solution for this situation. The reason why it got turned away by the world bank lies beneath the fundamentals of how Bitcoin functions. With its massive user base and even more impressive market cap, there are no shortcuts to encrypt and store the necessary data for transactions. Thus, Bitcoin created an energy draw that’s equivalent to the nation of Egypt, and no one can confirm if that energy comes from a sustainable source. On top of that, Bitcoin is leaving more and more traces of who you are and what you do, making it less anonymous. Finally, it does not even work well as a currency. Those fundamentals created an invisible barrier that acts as resistances in Bitcoin’s road back to its glory.
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