Vitalik Buterin: Shame on the Bitcoin Maximalists who support the President of El Salvador

Vitalik Buterin: Shame on bitcoin maximalists supporting El Salvador president by forcing companies to accept cryptocurrency

Vitalik Buterin said it's a shame for bitcoin maximalists who uncritically praise El Salvador President Nayib Buukele. According to the co-founder of ethereum, accepting a particular currency by companies is against the "ideals and freedom" of cryptocurrencies.

The cryptocurrency billionaire said pushing bitcoin to millions of people without teaching them is reckless and could lead to scams.

Ethereum co-creator Vitalik Buterin has called the "bitcoin maximalists" for their uncritical support for President Nayib Bukele's efforts to make the token a daily currency in El Salvador.

In comments suggesting he doesn't believe Bukele's enthusiasm for the application, the 27-year-old crypto billionaire has criticized enthusiastic bitcoin advocates. Shame on everyone. I'll call them: shame on the Bitcoin maximalists, who are uncritically praising Buterin, he said in response to a post on Reddit on Friday.

Bitcoin officially became legal tender in El Salvador on 7 September. The government has forced its millions of citizens and businesses to accept cryptocurrency for payment. Buterin reacted to these moves and called cryptocurrencies an area free from popular rule in the community.

Buterin said that making it mandatory for companies to accept certain cryptocurrencies was contrary to the ideals and freedom that are so important in the crypto space.

"Furthermore, pushing BTC to millions of people in El Salvador simultaneously with little or no prior education is dangerous and could lead to hacking or even scamming innocent people."

Anyone can invest in Bitcoin through a Bitcoin Prime Platform , for example, one of the most innovative trading apps.

Reddit writer Xavier Bukele speculated that he bought bitcoin at a lower price to make a profit. He believed that if there was widespread adoption, it would increase its value. Buterin dismissed that theory as the "simplest and most stupid hypothesis".

Another reddit writer asked if Buterin would have followed the same approach to the ethereum maximists, if Bukele had taken legal tender ether instead of bitcoin. Crypto co-founder Buterin responded to a question about whether he would have taken the same approach to the ethereum maximalists if Bukele hadn't taken ether as legal tender. He cited at least three cases.

Bitcoin was trading at $ 56440 per dollar last Monday. It is now up 94% this year.

The Concerns Due to Bitcoin

Mining digital currency from cyberspace takes a lot of energy. According to Bank of America, global CO2 emissions from the bitcoin industry have increased to 60,000,000 tons. This is equivalent to the unloading of around 9 million cars.

Bukele sought to address sustainability issues by claiming in June that he directed LaGeo, a state-owned geothermal power company, to create a plan to offer Bitcoin mining facilities using renewable energy generated by the country's volcanoes.

Bitcoin promotes it as an innovation free from the whim of the government. However, there have been warnings that it could increase regulatory, financial and operational risks for financial institutions.

Fitch Ratings, a rating agency, said capital gains would not be subject to tax and that taxes could be paid in Bitcoin . This could encourage foreign inflows into the country. This could increase the risk of illicit proceeds going through Salvadoran financial systems.

During negotiations with El Salvador for a $ 1 billion loan deal (which remains pending), the International Monetary Fund raised legal concerns about bitcoin adoption.

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This is a machine translation of a post published on Scenari Economici at the URL on Tue, 12 Oct 2021 20:00:11 +0000.