The New York Times’ Latest Attack On El Salvador And BTC Won’t Age Well, Pt. 1

    The New York Times joined the remainder of mainstream media in kicking bitcoin when it’s down. Even although the world’s financial system is clearly within the crimson throughout the board, bitcoin deniers are having the time of their lives declaring bitcoin lifeless. That places Nayib Bukele and El Salvador’s bitcoin guess in mainstream media’s sights. 

    The title offers away The New York Times’ intentions and normal view of the scenario, “A Poor Country Made Bitcoin a National Currency. The Bet Isn’t Paying Off.” Yikes! First of all, that’s a classist title. Second, we beg to vary. From the get-go, The New York Times’ claims are usually false, hyperbolic, and short-sighted. The article stinks of the excessive time desire of the fiat world, and Bitcoinist is right here to criticize the critics.

    What Did The New York Times Say, Exactly?

    To be honest, the article will get a lot of the information proper. For instance, “Mr. Bukele’s bitcoin push was dealt a further blow by a global cryptocurrency sell off that wiped away hundreds of billions dollars from the value of digital assets since March.” Ok, that’s honest. The New York Times omits to say that the Terra/ Luna collapse was the catalyst for this crash. Or advantages this purge will carry to the crypto financial system as a complete.

    “But nearly a year after the country’s president, Nayib Bukele, shocked the financial world by making its most popular digital coin a national currency, his bet appears to be backfiring, highlighting the gap between the utopian promises of cryptocurrency’s proponents and economic realities.”

    That’s not what’s taking place in any respect, New York Times. The individuals in control of El Salvador’s financial system, together with the President, knew that bitcoin was risky from the get-go. They, together with everybody, knew that this situation was not solely doubtless however inevitable. It took the entire market abruptly, that’s a reality, nevertheless it’s not just like the Salvadorans weren’t ready for this situation.


    BTC value chart for 07/08/2022 on Bittrex | Source: BTC/USD on

    The New York Times’ Attacks On El Salvador

    • “The failure of Mr. Bukele’s stated objectives for bitcoin — to bring investment to the country and financial services to the poor.” Those are three lies, again to again. According to our numbers, tourism is up and investment and construction are up. Plus, if the poor get a smartphone they’ll get monetary companies in lower than 5 minutes. For the primary time of their lives, in lots of circumstances.
    •  “Last year, his government allocated the equivalent of 15 percent of its annual investment budget to try ingraining bitcoin into the national economy.” – Is {that a} criticism? That’s cash effectively spent. It acquired El Salvador on The New York Times’ entrance web page, for instance.
    • “Only 10 percent of Chivo users continued making bitcoin transactions on the app after spending their $30 stipend,” and “Almost no new customers downloaded the app this year, the researchers found.” Perfect, as a result of that app was horrible. Here’s hoping that no less than 10% of these individuals acquired non-custodial wallets.
    • “A separate survey by El Salvador’s Chamber of Commerce in March found that only 14 percent of the country’s businesses made bitcoin transactions since it was introduced in September, and only 3 percent said they perceived any business value in it.” Well, they’re mistaken and lacking the chance of a lifetime. Take a category at My First Bitcoin.
    • “Digital currency payment apps, such as Chivo, accounted for less than 2 percent of remittances in the first five months of this year, according to El Salvador’s central bank.” Those numbers appear promising. Especially contemplating that ”El Salvador’s central financial institution.” has zero entry to non-custodial pockets stats.
    • “Only 48 new companies focused on bitcoin have registered in El Salvador since the cryptocurrency’s introduction, according to the country’s central bank; that represents less than 2 percent of all businesses that opened in 2019.” That’s fairly good, contemplating the federal government hasn’t laid out a transparent path for small to medium companies to ascertain a presence within the nation. 

    It’s necessary to do not forget that we’re lower than a 12 months into this experiment.

    Other People’s Attacks On El Salvador

    • “The government gave this project as much push as you could hope for, and it still failed,” stated Fernando Alvarez, a University of Chicago economist.” No, they didn’t. What film did this man watch? The authorities nonetheless owes the Salvadorans the entire bitcoin training that it promised.
    • “People are scared of losing their money,” stated Edgardo Villalobos, who coordinates distributors at a sprawling avenue market in downtown San Salvador, El Salvador’s capital. After the latest value collapse, he stated his $30 stipend from downloading the Chivo app is value $10.” It acquired to be greater than $60, additionally. Are we alleged to really feel dangerous for this man’s lack of enterprise acumen?
    • “The problem with bitcoin is that no one is gaining anything,’’ said Carlos Acevedo, a Salvadoran economist and former central bank director. “It’s an investment that doesn’t bring social benefits.” Yikes! Take again this man’s college title, stat. What a dumb factor to say.

    This article is the reward that retains on giving. Join Bitcoinist this afternoon for a have a look at the constructive facet of The New York Times piece and for his or her most dishonest assaults on bitcoin. The authors saved the very best for final, and we did too. 

    Featured Image by tacskooo from Pixabay | Charts by TradingView

    DeLorme, El Salvador flag

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