Title: El Salvador’s Bitcoin Adoption: A Slow yet Steady Progress
El Salvador’s decision to embrace Bitcoin as legal tender has been met with skepticism from certain corners. This stance gained further ground when a recent study revealed that a mere 7.5% of Salvadorans are using Bitcoin for their transactions, leaving a staggering 92% who are not. Critics might jump to conclusions that the endeavor has failed, but that’s a hasty judgment.
Contrary to the quick dismissal, El Salvador’s move to make Bitcoin legal tender is showing signs of progress. Besides the boost in tourism, entrepreneurial activities, and global attention, the law is proving to be beneficial in the grand scheme.
The current population of El Salvador is approximately 6.3 million, which means nearly 475,000 individuals, or 7.5%, are using Bitcoin for transactions. Almost half a million adopting Bitcoin as a form of currency is no small feat and, thanks to the Lindy effect, this figure is likely to grow over time.
Considering El Salvador’s history of failed currencies, it was clear from the start that the entire nation wouldn’t instantly switch to this new payment method. Building trust in any new system takes time and patience.
As I highlighted three years ago, for Bitcoin to become a prevalent medium of exchange, it first needs to establish itself as a reliable store of value. Even at its current worth of $1.4 trillion, Bitcoin is still minuscule compared to the massive global wealth.
There’s still a prevailing notion among the general public that Bitcoin carries significant risk. This perception needs to change before we see increased adoption of Bitcoin as a daily transaction method in more countries.
Bitcoin is still a budding asset class that is yet to reach its full potential. As it matures, it gains credibility, increases in price, and spurs innovations that offer new transactional and custody solutions for non-tech-savvy individuals.
This maturation process will take time, but it’s well underway. Some Bitcoin enthusiasts are overly optimistic about the speed of adoption, expecting it to become an everyday transaction method in just a few years. However, real-world data like this study suggests a more gradual process.
In short, for Bitcoin to achieve global merchant adoption and everyday use, it will need a much higher price, simpler usability, and enhanced trust levels. How long will this take? It’s hard to say. But if we consider it as a loading bar, we’re already 7.5% complete with Salvadorans transacting in Bitcoin.
Progress is being made, albeit slowly. Remember, Rome wasn’t built in a day.
Disclaimer: The views and opinions in this article are solely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
