{"id":2953,"date":"2021-09-24T07:53:58","date_gmt":"2021-09-24T05:53:58","guid":{"rendered":"http:\/\/costops.com\/index.php\/2021\/09\/24\/el-salvadors-adoption-of-bitcoin-as-legal-tender-is-pure-folly\/"},"modified":"2021-09-24T07:53:58","modified_gmt":"2021-09-24T05:53:58","slug":"el-salvadors-adoption-of-bitcoin-as-legal-tender-is-pure-folly","status":"publish","type":"post","link":"http:\/\/costops.com\/index.php\/2021\/09\/24\/el-salvadors-adoption-of-bitcoin-as-legal-tender-is-pure-folly\/","title":{"rendered":"El Salvador\u2019s adoption of bitcoin as legal tender is pure folly"},"content":{"rendered":"

Cryptocurrencies are a baffling entity but adopting it as legal tender is the strangest, most worrying aspect of all<\/p>\n

El Salvador this month became the first country to adopt a cryptocurrency \u2013 in this case, bitcoin \u2013 as legal tender. I say the first, because others might follow. But they should think twice, because the idea is highly dubious \u2013 and likely to be economically dangerous for developing countries in particular.<\/p>\n

I will admit that I don\u2019t understand the need for cryptocurrencies at all. Like many<\/a> economists<\/a>, I fail to see what problem they solve. They aren\u2019t well designed to fulfil any of the classic functions of money \u2013 a unit of account, store of value, or means of payment \u2013 because their prices are so extraordinarily volatile. This volatility is not surprising, because cryptocurrencies are backed neither by reserves nor by the reputation of a well-established institution, such as a government or even a private bank or other trusted corporation.<\/p>\n

Continue reading…<\/a>
\nCryptocurrencies are a baffling entity but adopting it as legal tender is the strangest, most worrying aspect of all
\nEl Salvador this month became the first country to adopt a cryptocurrency \u2013 in this case, bitcoin \u2013 as legal tender. I say the first, because others might follow. But they should think twice, because the idea is highly dubious \u2013 and likely to be economically dangerous for developing countries in particular.
\nI will admit that I don\u2019t understand the need for cryptocurrencies at all. Like many economists, I fail to see what problem they solve. They aren\u2019t well designed to fulfil any of the classic functions of money \u2013 a unit of account, store of value, or means of payment \u2013 because their prices are so extraordinarily volatile. This volatility is not surprising, because cryptocurrencies are backed neither by reserves nor by the reputation of a well-established institution, such as a government or even a private bank or other trusted corporation. Continue reading…Technology | The Guardian<\/p>\n","protected":false},"excerpt":{"rendered":"

Cryptocurrencies are a baffling entity but adopting it as legal tender is the strangest, most worrying aspect of all El Salvador this month became the first country to adopt a cryptocurrency \u2013 in this case, bitcoin \u2013 as legal tender. I say the first, because others might follow. But they should think twice, because the …<\/p>\n

El Salvador\u2019s adoption of bitcoin as legal tender is pure folly<\/span> Read More »<\/a><\/p>\n","protected":false},"author":0,"featured_media":2954,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/posts\/2953"}],"collection":[{"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/comments?post=2953"}],"version-history":[{"count":0,"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/posts\/2953\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/media\/2954"}],"wp:attachment":[{"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/media?parent=2953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/categories?post=2953"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/costops.com\/index.php\/wp-json\/wp\/v2\/tags?post=2953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}