In old times all types of wars assumed one group of people fighting against their adversaries, or nations headed by their governments fought against other nations. Peculiarity of contemporary hybrid wars lies in the fact that these are societal establishments who, one way or another, fight against their own people to safeguard their privileges. These people are old and old fashioned to begin with.

New generations, Gen Z and millennials simply don’t understand their Cold War era grievances. The world leaped far ahead since then, but they still try to drag the digital era, one-click-connect people back to literally Medieval times. They may succeed at defending their financial systems but they are apparently losing their audience. China’s example of banning crypto mining without offering a viable alternative show that doesn’t solve the problem. 

On Monday, El Salvador’s President Nayib Bukele said that the country purchased its first 400 coins and promised to buy “a lot more” Bitcoin to its coffers as he announced El Salvador to become the first nation to adopt Bitcoin as legal tender.

In June, El Salvador passed a law allowing El Salvador to become the first country to establish Bitcoin as legal tender alongside the existing U.S. dollar (a very unhappy situation for such a generally low income country since it doesn’t print its own currency). All entities in the country will now be obliged to accept Bitcoin as a payment method for goods and services, and Salvadorans will be able to use the cryptocurrency to pay taxes.

Some of the world leaders and their subordinates rushed to deliver comments on Bitcoin after El Salvador’s acceptance.

The example of El Salvador, as expected, did not inspire the Russian authorities to make any concessions in terms of legalizing Bitcoin, which the Bank of Russia considers a monetary surrogate to be harmful and dangerous for the stability of the financial system. “It is clear [for us] that Russia is [we are] not ready for such steps. So far there is not the slightest reason to take such steps, ” – said the press secretary of Russian President Dmitry Peskov. “De facto, equating them (bitcoins) with monetary instruments … can bring nothing but harm to the financial and economic system. If we are talking about full recognition as a means of payment, ” he added.

But these are just no more important appearances than occasional Twitter posts by celebrities, because they are forgetting that all cryptos are deregulated and influenced by sentiments of folks like you and me, and, as much as their exchange rates are concerned, whale traders and investors. Period. Yes, once they realize their dwindling resources to fight against what many (not all, of course, but predominantly many) people want, against the new digital world, they will turn the page and unbury the hatchet. They will block cashing out cryptos, and such a move is outright anticipated. The answer as to whether these predetermined actions will succeed or fail, lies exclusively in predicting the share of sovereign countries, vendors and services accepting by that time cryptos without a need to exchange them for any fiat currency. The system becomes self-isolated and self-contained.

True, Bitcoin and other cryptos fell tangibly in the wake of El Salvador’s move, but those who articulate on the price fluctuations while building a risky investment case against digital currencies forget about the asymmetric nature of crypto investments unlike investments in other classes. People predominantly buy digital coins long term and less and less often sell them – even in their darkest days. So their frequently cited exchange rates to currencies like USD have very little practical sense. These exchange rates show how little or how big a lot of dollars or euros one would get in case he or she decided to cash out his or her digital assets portfolio. But the growing majority of digital asset owners don’t have an urge to sell their digital currencies to the new market entrants for their dollars, euros, yens or tugriks.

Unlike many think, El Salvador is not the only country to legally endorse Bitcoin and/or other cryptocurrencies. This truly historic event is capable of igniting a chain reaction of smaller nations’ adoptions of cryptocurrencies as official payment media. As we once mentioned, there are such countries as Paraguay and Tanzania – that are ready to thrust legislative voting concerning adoption of Bitcoin as a parallel legal tender. Moreover, recently, Ukraine became the latest country to legalize Bitcoin. This week the Ukrainian Parliament passed a law concerning circulation of Bitcoin in the country West of Russia. The bill drafted in 2020 passed with a total of 276 lawmakers supporting the law, and only six against it.

The main purpose behind that move was to provide legislative definition of the asset and protect those who own Bitcoin, as it was not previously either legal or illegal in the country. Previously the Ukrainian law enforcement agencies treated Bitcoin and other virtual cryptocurrencies as a scam, resulting in Bitcoin businesses getting raided.

 

Map created by reddit user s3v3r3

 

Ecuador, East Timor, Micronesia, Palau, Turks and Caicos, British Virgin Islands, Zimbabwe (again dying of hyperinflation) are examples of the disadvantaged countries using USD as a currency of choice and that are evidently open to accept literally anything else which issuance is limited and, thus, doesn’t produce hyperinflation.

If SOV coin is able to become an official legal tender for the Republic of the Marshall Islands, the possibility exists for Bitcoin or any other major crypto currency to become an acceptable legal tender for many if not all small currencyless nations.