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.
The adoption of #Bitcoin as legal tender has been a nightmare for El Salvador's economy. Citizens regularly face technological difficulties and financial losses. El Salvador's creditworthiness has also taken a hit – the country's bonds have been in distress for over a month. pic.twitter.com/Cbf5UrwXzW
— Steve Hanke (@steve_hanke) October 11, 2021
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
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,
as discussed here before, early S-curve like #bitcoin, or internet stocks cisco, amazon in 90s, volatility is inherent and expected in early stage high Sharpe ratio assets. this is what the HODL meme is about, focus on value investing, long time preference https://t.co/hcOlYJRuPo pic.twitter.com/RggFpwV4my
— Adam Back (@adam3us) October 9, 2021
