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El Salvador President: 1% of BTC invested would increase GDP by 25%

21 pointsby liamcardenasalmost 4 years ago

5 comments

jc_811almost 4 years ago
So the president of a country:<p>- Whose minimum wage is between $113-$242 dollars per month [1]<p>- Where 26% of the population is living on less than $5.50 per day [2]<p>Wants to use a digital store of value, as a means of exchange, whose transaction fees have ranged from $6-$60 in the past 2 months [3]<p>How is this anything except an attention&#x2F;headline seeking PR move?<p>[1] <a href="https:&#x2F;&#x2F;www.minimum-wage.org&#x2F;international&#x2F;el-salvador" rel="nofollow">https:&#x2F;&#x2F;www.minimum-wage.org&#x2F;international&#x2F;el-salvador</a><p>[2]<a href="https:&#x2F;&#x2F;www.macrotrends.net&#x2F;countries&#x2F;SLV&#x2F;el-salvador&#x2F;poverty-rate" rel="nofollow">https:&#x2F;&#x2F;www.macrotrends.net&#x2F;countries&#x2F;SLV&#x2F;el-salvador&#x2F;povert...</a><p>[3]<a href="https:&#x2F;&#x2F;ycharts.com&#x2F;indicators&#x2F;bitcoin_average_transaction_fee" rel="nofollow">https:&#x2F;&#x2F;ycharts.com&#x2F;indicators&#x2F;bitcoin_average_transaction_f...</a>
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runeksalmost 4 years ago
&gt; #Bitcoin has a market cap of $680 billion dollars.<p>&gt; If 1% of it is invested in El Salvador, that would increase our GDP by 25%.<p>You can’t invest market cap. It’s just a figure you arrive at by multiplying two numbers: number of currency units&#x2F;price per currency unit. It doesn’t exist anywhere.<p>If I found a pebble on the beach and sold it to someone for 10 cents, and if we assume there are a trillion pebbles on this planet, then the market cap of pebbles would be $100 billion. But you wouldn’t be able to use this “value” anywhere, because it doesn’t exist.
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ivanchealmost 4 years ago
The president of a country publicly admits on Twitter that 70% of his population doesn&#x27;t have bank account and they work in grey&#x2F;black economy? Dude, that&#x27;s your problem right there, and BTC is not a solution.
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imtringuedalmost 4 years ago
There are two problems.<p>1. Where are those $6.8 billion supposed to come from?<p>2. Market cap is a measure of wealth, GDP measures cash flow for one year. How is an investment into an asset that doesn&#x27;t produce revenue going to increase GDP over the long term? Even if your Bitcoin go up you can only sell them once, therefore you should delay the sale as much as possible.
nlyalmost 4 years ago
Does the guy know GDP is a measure of annual return and a one off investment in a non-yielding asset doesn&#x27;t create a perpetual return?