Bitcoin: The Mystery of the World’s Only Legal Currency

In the wave of digital currency, Bitcoin, as the earliest cryptocurrency, has attracted global attention and discussion. Although the origin of Bitcoin is closely related to its status as legal tender, many people are still confused about this question: Which country's legal tender is Bitcoin? In order to better understand this issue, we need to explore in depth from multiple angles such as Bitcoin's history, legal status, global acceptance, and future development.

First of all, the history of Bitcoin can be traced back to 2009, when an anonymous person named Satoshi Nakamoto published the Bitcoin white paper, proposing a decentralized digital currency concept. Bitcoin is not only a medium of exchange, but also an emerging way to store value. Over time, Bitcoin has gradually been accepted by more and more people and has become an investment tool and a means of payment. However, although Bitcoin has gained widespread attention around the world, its status as a legal currency is not clear.

In most countries, Bitcoin is not considered legal tender. Legal tender is usually a currency issued by a country's government and protected by law, while Bitcoin is decentralized and is not issued and managed by any central bank or government agency. Therefore, in many countries, Bitcoin is considered a commodity or asset rather than legal tender. For example, in China, Bitcoin is considered a virtual commodity and related transactions are restricted; in the United States, although Bitcoin is allowed as a means of payment, it is not considered legal tender.

Still, El Salvador’s policy is not without challenges. Many economists and financial experts have expressed concerns about Bitcoin’s volatility, arguing that it lacks the stability to serve as legal tender. Bitcoin’s price can experience wild swings in a short period of time, posing a threat to economic stability. In addition, it is also a matter of concern whether El Salvador’s infrastructure can support widespread Bitcoin use. Whether many merchants are willing to accept Bitcoin as a payment method remains an open question.

Bitcoin acceptance is also changing around the world. As more and more businesses and merchants begin to accept Bitcoin payments, consumers' awareness and acceptance of this new currency are gradually increasing. For example, Tesla once announced that it would accept Bitcoin as a payment method, although it later suspended this policy due to environmental issues. Other well-known companies such as Microsoft and PayPal have also joined the ranks of accepting Bitcoin. These changes show that the potential of Bitcoin as a payment tool is gradually being recognized by the market.

However, despite the growing acceptance of Bitcoin, many countries remain cautious about it. For example, the Indian government once considered a complete ban on cryptocurrencies, although it later switched to regulatory measures. In addition, the European Union is also studying the regulatory framework for cryptocurrencies to prevent money laundering and other financial crimes. Therefore, although Bitcoin has gained recognition in some regions, its future legal currency status still faces many uncertainties.

From a technical perspective, Bitcoin's underlying technology, blockchain, provides decentralization, security, and transparency, which gives Bitcoin unique advantages. The application of blockchain technology is not limited to Bitcoin, but can also be extended to other fields, such as smart contracts, supply chain management, etc. Many countries and companies are actively exploring the potential of blockchain, which provides new opportunities for the future development of Bitcoin.

Bitcoin has also attracted a lot of attention at the level of individual investors. Many people see it as a tool to fight inflation, especially in times of economic instability. The scarcity of Bitcoin (a total of 21 million coins) makes it have the characteristics of "digital gold" to some extent. However, investing in Bitcoin also comes with high risks, and investors need to have certain market analysis capabilities to cope with possible price fluctuations.

In addition, the legal status and regulatory policies of Bitcoin are also constantly evolving. As countries around the world gradually strengthen their regulation of cryptocurrencies, investors need to pay attention to changes in national policies in order to make corresponding adjustments. Especially in some major economies, changes in regulatory policies may have a significant impact on the price of Bitcoin.

In summarizing the legal tender status of Bitcoin, we can see that it has both opportunities and challenges. Although El Salvador's move provides new possibilities for the future development of Bitcoin, its stability as a legal tender and its global acceptance still need time to be tested. In the future, with the development of technology and changes in the market, the status of Bitcoin may undergo new changes.

In conclusion, although Bitcoin’s status as legal tender is still under debate, its influence has already permeated every corner of the global economy. Whether as an investment tool or a means of payment, Bitcoin is constantly changing people’s trading methods and economic concepts. With the participation of more countries and companies, the future of Bitcoin deserves our continued attention and in-depth thinking. By better understanding the nature of Bitcoin, we may be able to see more clearly the arrival of this digital currency era and its profound impact on our lives.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

From Musk's poisonous mouth to national regulation, to Trump's "Bitcoin is a scam, I don't like it", Bitcoin has suffered a series of blows and has fallen frequently. In particular, according to the data compiled by the editor of the Coin Circle, Bitcoin has fallen below $33,000 in the last 24 hours, a drop of 10.3%. Although Bitcoin has been in a storm recently, it has still received support from the national team. So, which country's legal currency is Bitcoin? The editor of the Coin Circle will tell you in detail which country's legal currency is Bitcoin?
 Which country’s legal currency is Bitcoin?
On June 6, Nayib Bukele, President of the Republic of El Salvador, said at the Bitcoin 2021 Conference in Miami that a bill will be submitted to the country's parliament next week to make Bitcoin a legal means of payment in the country. Once approved, this bill means that El Salvador will become the first country in the world to use Bitcoin as legal tender.
At around 10:00 on June 9, 2021, Nayib Bukele tweeted that he had officially submitted the Bitcoin bill to the Legislative Assembly of the Republic of El Salvador.
According to U.today, the Legislative Assembly of the Republic of El Salvador voted in favor of the bill, receiving 60 votes out of 84, but Congress has not yet passed it. This means that Bitcoin may soon become the legal currency of the Republic of El Salvador. The bill will take effect ninety days after it is published in the government gazette.
Later, Salvadoran President Nayib Bukele also interacted with TRON founder Justin Sun on Twitter and mentioned the four major benefits of El Salvador for cryptocurrency entrepreneurs, namely:
1. Perfect climate, world-class surfing beaches, and beachfront properties for sale.
2. One of the few countries in the world without property tax.
3. No capital gains tax will be levied on Bitcoin as it will become legal tender.
4. Instant permanent residency for crypto entrepreneurs.
The main reason why El Salvador dared to be the first to try this is that as a cash-based economy, about 70% of the people in El Salvador do not have bank accounts or credit cards, and El Salvador's economy is heavily dependent on remittances from immigrants, and the money remitted by immigrants to their home country accounts for more than 20% of El Salvador's GDP. According to foreign media reports, more than 2 million Salvadorans live abroad but still maintain contact with their hometowns, with remittances of more than 4 billion US dollars each year. Existing service agencies in El Salvador charge more than 10% for these international transfers, and the transfers sometimes take several days to arrive, and sometimes residents need to pick up the money in person.
In view of this, decentralized, globally circulated Bitcoin provides Salvadorans with a more convenient way to send money home without high service fees.
Although details on how Bitcoin will work have not yet been released, El Salvador has formed a Bitcoin leadership team to help build a new financial ecosystem with Bitcoin as the base layer. The Minister of Trade and Investment of El Salvador said that in El Salvador, Bitcoin transactions will be free to decide. The US dollar will continue to be the legal currency of El Salvador, and Bitcoin operations will be pegged to the US dollar exchange rate.
It is worth looking forward to that, following the President of El Salvador, Argentine National Representative Francisco Sanchez also posted a photo of laser eyes on Twitter, saying, "I can't believe it, but that's what happened."
In fact, over the past decade, Argentina has been suffering from a turbulent political and economic environment: currency depreciation, excessive debt, inflation, and economic contraction. All these factors have led to the accelerated adoption of decentralized and deflationary assets such as Bitcoin.
In addition, a Panamanian politician tweeted on June 8 that he intends to propose legislation in the country to accept Bitcoin and cryptocurrencies.
Silva said, “Panama cannot be left behind, if we want to become a real hub for technology and entrepreneurship, we must support cryptocurrencies. We will prepare a proposal to the Congress.”
 Main contents of the Bitcoin Act of the Republic of El Salvador:
Article 1. The purpose of this Law is to regulate Bitcoin as an unrestricted legal tender, with free power and without restrictions in any transaction that requires the public or natural or legal persons. The above paragraph does not prevent the application of the Monetary Integration Law.
Article 2. The exchange rate between Bitcoin and the U.S. dollar will be freely determined by the market.
Article 3. Prices may be denominated in Bitcoin.
Article 4. Taxes can be paid in Bitcoin.
Article 5. Bitcoin transactions will not be subject to capital gains tax, just like any fiat currency.
Article 6. For accounting purposes, the U.S. dollar will be used as the reference currency.
Article 7. Every economy must accept Bitcoin when offered to it by a person who wants to receive goods or services.
Article 8. Without prejudice to private sector actions, the State shall provide alternatives that allow users to transact in Bitcoin and automatically and instantly convert Bitcoin into U.S. dollars if they wish. In addition, the State shall promote the necessary training and mechanisms to enable people to transact in Bitcoin.
Article 9. The limitations and operating terms of the automatic instant conversion of Bitcoins to US dollars provided by the State shall be set out in regulations issued for this purpose.
Article 10. The Executive Branch shall establish the necessary institutional structures to implement this Act.
To sum up, this is the answer to the question of which country's legal currency is Bitcoin. Finally, the editor of the currency circle reminds investors that when investing in Bitcoin, they must pay attention to the form. Generally speaking, there are two main forms of currency circle investment, one is the long-term form and the other is the short-term form. Usually investors pay more attention to the long-term form, because the trend of the short-term form moves in a relatively small range, and there is not much withdrawal data. At the same time, it is easily affected by various factors and it is difficult to grasp it accurately, and eventually they will lose their way in the numerous influencing factors.

However, it is worth noting that there is one country that has undergone a fundamental change in its attitude towards Bitcoin. In 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender. This move has sparked widespread discussion and controversy. The Salvadoran government believes that the adoption of Bitcoin can promote economic growth, reduce remittance costs, and attract more investors. Especially in El Salvador, many people rely on overseas remittances, and Bitcoin's low transaction fees and fast transfer characteristics do provide them with convenience.