Economist Steve Hanke says BTC adoption is a nightmare for El Salvador

By: Jinia Shawdagor
Jinia Shawdagor
Jinia is a cryptocurrency and blockchain enthusiast based in Sweden. She loves everything positive, travelling, and extracting joy and… read more.
on Oct 11, 2021
  • Hanke says El Salvador is having a hard time integrating BTC into its economy and financial system.
  • The economist claims Salvadorans have incurred losses after the country embraced BTC as legal tender.
  • According to the BTC basher, El Salvador’s creditworthiness has also suffered a significant blow.

Steve Hanke, a renowned economist and a vocal Bitcoin (BTC/USD) and crypto critic, claims BTC adoption has been troublesome for El Salvador, which recently embraced the digital asset as legal tender. He shared his sentiments through a tweet earlier today, saying the central American country is having a hard time incorporating BTC payments into its economy and financial system.

Hanke backed his claims with a chart, indicating El Salvador’s bonds have been fluctuating for over a month.

Hanke compares BTC to an unfriendly dog

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Hanke’s tweet came on the heels of another tweet on Sunday, in which the economist said BTC is a speculative asset and that its prices are always a rollercoaster ride. According to him, anyone looking to invest in BTC should brace themselves for the volatility. Hanke also shared a tweet of a dog named Bitcoin, which is not friendly most of the time.

As is the norm, crypto enthusiasts came forward to challenge Hanke’s opinion, with Adam Black, the founder and CEO of Blockstream, saying,

Black added that BTC features more mathematical assurance compared to fiat currencies which are susceptible to moral hazard, political interference, and debasement.

Whales continue amassing BTC

Despite critics like Hanke continually bashing BTC, enthusiasts are unfazed and have instead accumulated more of the flagship cryptocurrency.

According to Santiment, a crypto analytics company, whale accounts purchased 85,700 BTC over the past two weeks. As a result, whales now hold 21.3% of BTC’s supply. The firm added that this is the highest percentage they have ever had in their possession.

BTC is also trending higher, with the coin breaking past the $56,000.00 (£41,101.48) resistance level yesterday. At the time of writing, BTC is trading at $56,419.98 (£41,409.73) after gaining 2.45% over the past 24 hours and 18.62% in seven days. These gains have brought BTC even closer to its April 14 all-time high (ATH) of $64,863.10 (£47,609.19).

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