On 9 June 2021 El Salvador assembly passed the Bitcoin law. According to the Bitcoin law in El Salvador, Bitcoin is a legal tender.
We already covered it here.
But in this article we will explain those points which are responsible for the huge benefits for the citizens of El Salvador.
Here we will not only talk about the individual advantageous factor but also we will explain how the President of El Salvador took a greater decision regarding Bitcoin use to grow the GDP of the country.
Potential Of Bitcoin Tends To Increase The Potential Of Bitcoin Holders
All the people who are in the field of cryptocurrency know very well about Bitcoin and bitcoin’s future.
Year by year increase in the demand of the Bitcoin and down in the supply is responsible for high growth in the cryptocurrency market.
And obviously the President of El Salvador knows Bitcoin’s potential, that’s why they legalised Bitcoin in the early stages.
Every Country’s government knows very well that if they ban Bitcoin then there are still very high chances that people will use it illegally.
So it is better to legalize it, so that people can use it under a particular rule with full legalisation procedure.
If people will buy Bitcoin then there is a very high chance that people will gain lots of profit with the increment in bitcoin’s price.
Bitcoin Law In El Salvador Will Increase GDP Of The Country
GDP means overall growth of the whole country through all categories of Business.
Here the Bitcoin law in El Salvador will tend to increase every category of business to use Bitcoin. And as all of us knows very well that Bitcoin is that medium of digital money which integrate the whole world to accept and remit payment without any restriction.
So every business will try to expand their business at international level.
So an increase in the Network of the business at international level will tend to grow the overall GDP of the country.
Government TAX Earning Scheme
In this world any mode of payment is used for the good and bad activity, not a point of doubt.
We can even see drugs buy/sell in the whole world, regardless of the point that drugs are illegal for public use directly.
But still people are using it to make money.
So here the situation will remain the same, even if the government declares Bitcoin a type of scam”.
But the government allowed people to buy/sell Bitcoin legally under certain laws.
Since there is no tax rule on the gains of Bitcoin value.
But there are tax rules over Bitcoin which are applicable at the time of buy/sell.
And the tax from the buy/sell of Bitcoin will result into biggest source of Tax for EL Salvador.
Opportunity For Middle Class People & Lower Class People Of EL Salvador
There are many people who are making lots of money day by day. And these people are using their money power to work some illegal activity to gain more profit.
But now Bitcoin is no longer an illegal thing ( according to official Bitcoin law in EI Salvador).
Every person from any of the classes can buy and hold Bitcoin to become rich.
Here it will be a Biggest point for those who belong to lower Middle Class or lower class people, who are not able to earn a very high amount, so that they can save for their future.
But after the Bitcoin law in EI Salvador, people will try to accept Bitcoin as a salary and there will remain chances to get more salary than usual.
So here numbers of options are available for people to use Bitcoin to grow in every aspect.
EL Salvador Bitcoin Law Will Be Support For Bitcoin To Be Accepted By Other Countries Legally
In the present time there are a number of countries which are in favour and also against the use of Bitcoin.
Most of the countries which are against Bitcoin use are confused with the regulation rules. They are not able to make better rules to regulate Bitcoin and cryptocurrency perfectly.
But here EI Salvador Bitcoin Law will motivate and support Bitcoin at global level.