The people of El Salvador have shown their discontent over the country’s recent decision to adopt Bitcoin as a legal currency.
Angry protests and confusion amongst citizens, technological glitches and a drop in market value plagued El Salvador yesterday, as the country made history by becoming the first in the world to adopt Bitcoin as a legal tender.
As the change took hold, Bitcoin crashed to its lowest price in almost a month, plummeting from $52,000 (£37,730) to below $43,000 at one point.
According to reports many citizens of El Salvador are worried over the government’s decision to incorporate Bitcoin as a legal currency in the country.
However, just as the cryptocurrency was made legal, the country bought 400 Bitcoins worth around $20 million. President Nayib Bukele also promised that the country would be buying more of these in the future.
As was expected, the monumental purchase sent the price of Bitcoin soaring in the cryptocurrency market on Tuesday. However, it came down crashing hours later and now hovers around 8 per cent below its price point before El Salvador accepted it as a legal currency. The event highlighted the concerns of many Salvadorians against cryptocurrency.
People in the country are wary of the volatility of cryptocurrency. Even Bitcoin, the most important of the cryptocurrencies in the world right now, fluctuates rapidly in the market, possibly losing an enormous amount in a very short time if the crypto market goes down. Market activities over the past 24 hours are a glaring example of that.
Concerned for such reasons, protesters in El Salvador burned a tire and set off fireworks in front of the Supreme Court building. As reported by Reuters, the government had to deploy heavily militarized police to the site of the protest.