The main digital asset has gained popularity due to its adaptation to traditional centralized state finance, which means that it is a form of blockchain-based financing that does not rely on central financial intermediaries such as brokerages, exchanges, or banks that offer traditional financial instruments.
Bitcoin is like a financial instrument, which is free from government interference and regulation. It is also more secure and reliable than fiat, and completely anonymous.
THE IMPORTANCE OF CRYPTOCURRENCY FOR MANY DEVELOPING ECONOMIES
- Access to classical banking offers is limited or absent for a significant part of the population in some developing countries
- Currency transfers from residents of other countries working abroad generate large GDP figures
- The conversion of monetary units has been stopped
- End-to-end encryption for simplicity and security
The adoption of Bitcoin as a legal tender in El Salvador was met with ambiguity, which is not even surprising, and opinions largely depended on the recipient user: those who are financially and digitally savvy supported, while the majority of the population was very opposed, organizing protest rallies against the alleged political dictate that every means of payment would have to accept bitcoins as payment.
At the same time, companies have shown restrained interest, but are not quite sure how this will affect their overall cash flow planning. A common problem with the daily use of payments was accepting bitcoins at one cost only to see how the cost dropped dramatically when transferred to their operating account in cash. Some companies felt that it would be wiser to keep the cryptocurrency for long-term investment growth.
Physical and digital access:
- Supportive internet is a problem in remote areas
- Smartphone availability
- Conversion Access - Immediate, Delayed, Unavailable
- Reliability of the power grid
Basic Bitcoin wallet process:
Buying bitcoins is similar to any digital account, such as an investment account. It is necessary to have a place to store it. So when one opens an account, the digital wallet is created through the wallet application.
In the process of opening an account, a private key will be received only for the individual – as a rule, a random phrase of 12 words. After that, there will be a bit of advice (warning) to keep this key in a safe place away from unauthorized persons. If this private key is forgotten or lost, the person will also lose access to the cryptographic account. It is worth noting that there are many sad stories about those who have lost their private key and are unable to access their account, as well as about the increase in the value of bitcoins.
