El Salvador’s moves in bitcoin align to the main job job of an economy – to put money in the pockets of the people – in 3 ways:
- Tourism money. Bitcorati (people who made money from Bitcoin) want to have some fun when not talking crypto innovation and El Salvador has lots of fun things to do (like surfing on Bitcoin beach).
- Innovation money. Innovation capital (cash and IP) will head down to El Salvador because it has real value as a jurisdiction and laboratory for consumer crypto innovation using Lightning Network and because El Salvador is physically easy to get to from the American West Coast with direct flights from San Francisco. Oh and there are lots of fun things for nerds to do when not talking crypto innovation.
- Investor money. Bitcoin City, powered by geothermal energy and a Bitcoin Bond and super low taxes will bring in money.
If this works, voters will reelect Bukele. Zug, London, New York and Silicon Valley will have some competition. Actually the biggest competition is to Fiat money and the private capital investing via places like Zug, London, New York and Silicon Valley will do well as the crypto ecosystem grows.
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