Historically, each time the price of Bitcoin has faced one of its multiple crashes, voices around the world have been raised to predict the ultimate collapse of the cryptocurrency. However, time and again the virtual currency has regained its uptrend, belying the pessimists. And now, for Changpeng Zhao in the Tweet of the day, El Salvador is a guarantee for the price of Bitcoin:
El Salvador Strengthens Bitcoin Foundations
The future of Bitcoin is uncertain, both for those who support the cryptocurrency and for those who reject it. And it is that, the abrupt variations in the price of BTC, make that even the most experienced analysts of the crypto market have a bad time trying to predict where the virtual currency is going in the short term.
For this reason, the fear of a permanent collapse of the price of the cryptocurrency, and therefore of the crypto community as a whole, has always been present when it comes to Bitcoin. Arguing, especially, that since it does not have support from any government, there is no guarantee behind the price of the virtual currency.
However, this is beginning to change thanks to a Central American nation: El Salvador. And it is that, by converting Bitcoin into a legal tender within the Central American country, even though its government is not in charge of the issuance of Bitcoin as if it happens with fiat money, El Salvador would be putting the weight and influence of its economy behind cryptocurrency. Which is the biggest collateral that BTC can hope for for Changpeng Zhao.
«Still worried about #Bitcoin going to zero? Relax and think. It will not. In addition to many other reasons, it is now legal tender in some countries».
In this way, Changpeng Zhao would be reminding the crypto community of the importance of actions such as the government of El Salvador for Bitcoin. Not only because of the institutional support it provides to the cryptocurrency. If not for the example that your experience provides for other countries in the world considering taking a similar measure. Thanks to which El Salvador is a guarantee for BTC.