Bitcoin in El Salvador and DeFi Insights

Last week, El Salvador announced that Bitcoin would be accepted as Legal Tender. We bring on our favorite Bitcoiner Nic Carter to the State of the Nation to discuss this monumental historical event -- a nation-state officially recognizing Bitcoin as a currency.

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State of the Nation #50: El Salvador Adopting Bitcoin Guest: Nic Carter

Nic Carter, recently verified on Twitter, is a partner at Castle Island and 4-time guest on Bankless. In 2021, Nic has spent much of his time dispelling the common myths frequently pointed at Bitcoin by the mainstream media, and he has been a general in the Green Energy war taking place around Bitcoin.

Last week, Nic started a Twitter Space to discuss El Salvador adopting Bitcoin as legal tender, a historic moment for crypto. Nayib Bukele, the President of El Salvador, joined the Space as the El Salvadorian congress ratified the bill. This twitter space ultimately garnered over 20,000 listeners, including some of the biggest names in crypto. Bukele showed himself to be savvy with both tech and social media, earning his label as a populist.

This is a pivotal time for cryptocurrency. The news from El Salvador bring up increasingly important questions like the relationship between nation-states and digital value. There are a variety of motives for El Salvador to adopt Bitcoin including lessening dependence on US monetary policy, as the Dollar was previously the sole currency of the country.

What does it mean for a country to adopt a cryptocurrency? Is Bitcoin being used for its 'intended purpose?' Is this a populist reprisal? Do these events represent a rejection of the Cantillon effect, and a move against the monetary hierarchy of capital gains taxes? In this State of the Nation, we cover these questions and more as we digest this monumental news and figure out what to make of it.

------ Resources:

Nic on Twitter: https://twitter.com/nic__carter?s=20  Castle Island: https://www.castleisland.vc/  Nic's Podcast, On the Brink: https://onthebrink-podcast.com/  Crypto-Fiat Mutualistic or Parasitic: https://newsletter.banklesshq.com/p/crypto-fiat-mutualistic-or-parasitic  Bitcoin Beach: https://www.bitcoinbeach.com/ 

----- Topics Covered:

0:00 Intro 8:30 Nic Carter, Global Diplomat 10:18 Does El Salvador Change Everything? 15:43 Capital Gains 20:24 President Nayib Bukele 26:04 Is this good for El Salvador? 34:55 Lightning Network 40:15 Custodial Bitcoin 43:10 Bitcoin's Biggest Test 52:13 The First Domino to Fall 58:01 Is This Freedom or Coercion? 1:03:27 Pumping their own Bags 1:09:23 Authoritarian Populism 1:15:03 Gateway to DeFi 1:18:30 Physical vs. Digital 1:21:20 Consequences 1:23:54 Closing & Disclaimers

----- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://newsletter.banklesshq.com/p/bankless-disclosures