El Salvador sees a pick up of BTC use as Twitter replaces Western Union and negates China's Crypto ban

It's been only a short time since El Salvador legalised Bitcoin and accepted it as legal tender in their nation. It's launch experienced some set backs as the Chivo wallet launch didn't go smoothly but things have commenced picking up in El Salvador with payments made in Bitcoin to traders. The payments mostly made in El Salvador are micro payments on coffee and newspaper from local stores Source

Despite the protests emerging early on with the nation's crypto legalisation things appear to be starting to smooth out with the number of users growing.

Chivo wallet is a Bitcoin lightning Layer 2 which sees an increase in transfer speeds and for a low cost removing the fee barriers of transferring Bitcoin.

It is similar to the Strike lightning Layer 2 that Twitter just launched which has seen a 23% increase in node validators this week. Further indicating that Bitcoin adoption on Twitter is going to be a significant step forward with the Bitcoin community getting on board. With current data showing there are 27,000 node operators on the Strike Network with over 15,000 ready and equipped to process payments. Further information provided that the Strike network capacity has grown 19% and has 3000 Bitcoin locked in and ready to be used as payments Source

Thats not the only big news that Twitter is banking on with sector leaders stating that Twitters incorporation of Bitcoin has negated the impacts of China's ban on Cryptocurrency.

The lighting network that Twitter is implementing also has a use case for fast money transfers globally including payments and now replaces institutions such as Western Union which has dominated financial transfers globally in places in El Salvador.

Now with twitters lighting network El Salvadorians residing in Miama can send remittance to family in El Salvador instantly and free so why would anyone use a bank ever again? Source

Twitter currently is home to 330m users globally and every single user has just become Bitcoin users with the ability to accept bitcoin Tips for micro blogging.

So how significant was China's bitcoin ban and the launch of bitcoin payments on Twitter?

Well according to Martin Leo Rivers previous bans and action taken by China often resulted in a 20% market drop but thus time around China's most draconian and Authoritarian laws didn't make Bitcoin flinch with a slight dip of 5% but was instantly risen back to moderate levels to prior to China's announcement.

Opinion

My opinion is that we're starting to see a shift in who owns the Bitcoin market which for much of the precious decade we saw China own majority networks and control the market. However, as more nations and global citizens come on line the power shifts. With the constant political instability of China leading to high market volatility it was only a matter of time until the community itself came up with systems solutions.

This current ban seems to be the straw that broke the camels back with many Chinese companies now leaving China and opening up operations in other nations outside of China's grasp.

El Salvador has legalised bitcoin as tender with Australia being the first nation to legalise bitcoin in 2013 and more nations begin to warm to cryptocurrency China's ability to influence the market or even its people with draconian laws is diminishing.

Exciting times ahead and it will be great to see how we progress forward from here.

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