Dutch VS El Salvador!
By: Ahura Chalki
Market analyst – IFC Markets
A few days ago, economists were surprised by El Salvador officials when they confirmed the BTC as legal tender. At the same time, the U.S. dollar will also continue to be El Salvador’s currency.
Many economists believe that it can be a lousy suicide for the country’s economy. Like Pieter Hasekamp, director of the Dutch Bureau for Economic Analysis under the Ministry of Economic Affairs and Climate Policy, published an essay entitled “The Netherlands must ban bitcoin.”
When you want to accept something as a legal currency, it must be based on some fundamental base and backed up with something, like Gold, economic improvement, or any other assets. In contrast, BTC is based on love, and it can be unlovable right after an hour. Also, you can not accept something like your currency and base your country on that, and a gentleman tweet a broken heart, and your country becomes bankrupt!
Bitcoin can be a brilliant asset to invest in. However, it does not have the parameters of being a legal tender!
In short, words, what El Salvador did in the long term must be much negative than any news so far, as it will destroy the hope of crypto holders by causing a financial problem for millions of its population.
BitCoin Technical review:
Technically and in the Daily chart, BTC still in a clear downtrend. It is trading under both 20&50 DMA, while RSI at 40 supports the trend strength to continue the way. In an uptrend, BTC first needs to take over $40K and confirm stable trading in the $50K area and close above $55K to reach again its historical high of $65K. On the flip side, any breach under $32K will open the doors for deeper numbers.
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