What's up, graham, it's guys here, so we got ta, bring attention to a topic that, in my opinion, is not getting enough recognition, which i think is surprising, because this has the potential to completely change the trajectory in terms of how we transact money and build wealth And that is the fact that an entire country could soon be the very first to officially adopt bitcoin as their legal tender right alongside the us dollar. That's right, just like you, would go to the grocery store and pay for your items with cash or credit. Pretty soon bitcoin could be the preferred method of choice with absolutely no capital gains tax paid in the process for any profits you make and for many people this could represent a complete shift in the way they spend, save and build economic prosperity. So, let's break down exactly what just happened, what this means, how this could affect the value of bitcoin and then finally, how he could use this information to make more money, but before we start it would mean a lot to me if you diamond handed that, like Button for the youtube, algorithm and listen - i can't promise you that hitting the like button is going to make you an instant millionaire or cause elon musk to stop changing his mind on bitcoin, faster than he promotes random altcoins.

But i can promise you that it certainly can't hurt and if we could get this video to 69 420 likes, i will intro my next video with whatever the top comment to this video says. So now that my fate is in your hands, let's begin all right. So, if you've clicked on this, video chances are you're already familiar with bitcoin. Since the introduction in 2011, it's gone up in price from a dollar all the way up to now 35 000, as it slowly gained mainstream adoption and found its way into people's portfolios.

As a way to further diversify, however, some of its biggest challenges have been the recognition of bitcoin as a legal source of currency or store of value from a central point of authority. For example, the united states has pushed for more oversight and taxation. China has banned and discourages their citizens from participating in it, and overall bitcoin is still struggling to be recognized and endorsed on a large scale as a method of payment, but that might soon change thanks to a brand new recent announcement that el salvador aims to be The first country in history to adopt bitcoin as legal tender, which i got ta say, is pretty big news for all of us, regardless of where we live for reasons i'm about to discuss shortly. But in terms of this headline as of right now, el salvador is largely a cash economy, 70 of their citizens.

Don't have a bank account or a credit card and more than 20 percent of their gdp comes from remittances or money sent home from other locations of which is subject to excessively high fees for international transfers that could take days to arrive or require physical pickup bitcoin. On the other hand, could solve those issues entirely while allowing their citizens to transfer money anywhere in the world for a fraction of the cost in a fraction of the time, then, in addition to that, the president of el salvador also tweeted that, alongside using bitcoin as Legal tender there would be no capital gains tax on profit as a currency. He would offer immediate permanent residence to cryptocurrency entrepreneurs and, as a reminder, el salvador also has no property tax. Now, on paper, it's fantastic and if it's successful it could be implemented around the world and boost the value of bitcoin.

But there are a few major hurdles that have to be overcome for bitcoin. First, the number one being transaction speeds see as it is right now. Bitcoin is not exactly fast, i mean sure it's faster than initiating an ach transfer with your dinosaur bank and then waiting three to seven days for it to clear. But it has not been fast enough to pay for your groceries and not have to wait 30 minutes at the checkout counter for your transaction to complete.

That's because when you initiate a transfer on a basic level, that transaction needs to be recorded and confirmed by miners. On the blockchain and those transactions are generally prioritized by the fees that you pay. Sometimes this could be as quick as 10 minutes and other times as long as an hour, but that presents a few other problems first, waiting around for an hour, while your bitcoin transaction is confirmed, isn't exactly ideal and it's really inefficient to expect that people and businesses Would want to wait that long? The second, because of how volatile the price of bitcoin is with a hundred percent certainty by the time your transaction has confirmed, you will have either overpaid or underpaid for your item, depending on what bitcoin is trading at and third speaking of transaction times being prioritized by Fees that then, brings us to this. These transactions are not free, because every transaction must be confirmed by a miner for a fee and there's only so much space available at any given point in time.

The more people transact at the same time, the higher the network, congestion rate and either the more expensive your transaction will be or the longer you're gon na have to wait like, as you can see. Over the last two years, transaction volume has increased significantly for bitcoins. Slowly, turning bitcoin's transfer speeds into more like a traffic jam, unless, of course, you pay a slightly higher fee to expedite that process. In terms of how much, though it really depends on how much you're transferring and the amount of money you pay depends on the amount of data you're sending on average, though low priority transactions are paying about 35 cents and high priority transactions are paying just over a Dollar, but these are averages and that could go up substantially, depending on how much you're sending.

Of course, the good news with this, though, is that the cost of transaction is still significantly less expensive than a same-day. Ach transfer with bank of america we're sending an international wire transfer with chase, so in certain aspects. Bitcoin is a much more efficient way to move money around anytime anywhere, but in terms of being able to pay your groceries with it, it's still not as optimal as paying with cash or a credit card. And third, like i mentioned, there's a lot of price volatility, meaning one moment it's up and the other it's down.

This means you could be standing in line to pay for your groceries and by the time you reach the checkout counter. Elon musk has tweeted some fud and all of a sudden, the groceries now cost you 15 more than you were expecting. So that's why they've partnered with a company called strike which uses something called the lightning network to expedite transactions nearly instantaneously. They say that fees are so low that you could customize how and when you send your money down to the minute, and they followed up with this will allow billions of people around the world to access the financial system in a simple, low-cost way, fulfilling the original Vision and promise of bitcoin well evidently, it's working for el salvador, because back in march, this app became the number one most downloaded app in the country.

However, this now brings us to the second roadblock of bitcoin, actually becoming a legal tender, and that would be actually passing now like. I said this is a proposal being sent to congress, but as their politics are organized over there, this actually has a pretty high chance of passing. El salvador is a country which, unfortunately, has seen its fair share of violence and corruption, and recently their new president runs and controls the majority of congress, meaning pretty much whatever he proposes and says, is pretty much guaranteed to pass because they have the majority of votes Politically, critics do worry that the recent removal of several judges, along with the attorney general, allows them to pretty much do whatever they want without anyone opposing them and obviously that brings into question the future of their political system, including potential sanctions with the us. But politics aside, as far as this current topic of bitcoin under their current political system and has a very high chance of actually going through then within 24 hours of that announcement, paraguay also announced that they too would look into embracing bitcoin.

And once you start looking into this even further, it's easy to see the trend. Throughout the last decade, latin america has faced difficulties with inflation rate hikes and defaults, meaning their currencies lose value at an extraordinary rate, that's led to what's called the dollarization, which is where another country uses the us dollar in exchange of its own. But now that's beginning to shift towards bitcoin in a move that could soon follow in many more places, further legitimizing bitcoin as a store of value. Now, before we get into my own thoughts on this, i have to say it's kind of mixed.

On the one hand, it's important to understand that el salvador has not exactly been the most stable country, and it's yet to be seen if this move is really coming from the right intentions. Sure it's good news for bitcoin and any further adoption is really one step closer to one day being worth five hundred thousand dollars. But it also might just be a pr move to garner more positive media in light of u.s sanctions. And it's too early to tell for sure now also tax wise, even though it sounds really exciting to go and move there and pay absolutely no capital gains tax.

If you live in the united states, you're required to pay capital gains tax anywhere in the world, regardless of where you live. So logistically it just sounds like it's way more hassle than it's worth and it's probably way easier just to pay your taxes than it is to start over in a new country, who's still trying to find their footing. So, overall, the way i see it yes, this is good news for bitcoin. Yes, this is good news for el salvador and yes, i do think that if it's successful other countries are going to follow.

However, turning bitcoin into a universally recognized global currency is easier said than done, although this is a step in the right direction as long as it's done with good intentions, which i really hope it is but i'll admit, i'm not as educated on the political system over There, as i should to really make too many comments about this, so for anyone out there, who knows more than i do on this topic, feel free to comment down below and, like i said, i pretty much read them all. So if you write something, i will probably see it and lastly, speaking of all things bitcoin, you may have seen that about two months ago, i made a video calling the new bitcoin credit card, a disaster. This is a product introduced that would give its users unlimited. One and a half percent cash back in bitcoin, along with the 250 sign up bonus after you, spend three thousand dollars in the first three months.

But after running all of the numbers i concluded that it was an absolutely horrible deal because they had an annual fee of wait for it 200 a year. So, of course, this is what i had to say at the end of the video. However, if they do remove the annual fee, then i got ta say i would probably end up getting the card and one and a half percent cash back is pretty decent. It's okay and guess what, to my utter amazement, i am shocked, but they reached out to me personally.

They said they would be removing the annual fee, and then they sent me this inside is the bitcoin credit card that i trash talked in my previous video, which means the fact they actually listen to me and remove the annual fee means that this card itself is Actually, not so bad anymore, although i'll be honest, it's still not as good as the city. Double cash rewards credit card, which offers you two percent unlimited cashback on everything, but the fact that this one has no foreign transaction fees and gives you one and a half percent. Unlimited cash back in bitcoin makes this a lot better than a lot of the other free credit cards in the market so because they actually listened and they removed their annual fee, which i said was the only thing holding me back from actually getting this card and Recommending it, if you guys, are interested in getting this car too, i will link to it down below in the description but overall, like i said, i think all of these updates are really positive for bitcoin and the entire financial system in general, el salvador wanting to Make bitcoin a legal tender would be a huge milestone for any country, but still, i hope this is being done for the right reasons for the well-being of their citizens and not so much for good pr. If all of this does go through, however, and it's successful, i would not be surprised at all if other countries begin implementing this as well.

I think el salvador is a great starting point. I see a lot of advantages and i think this would be a good push for bitcoin long term but, like i said, expect to see a lot more volatility and for myself personally, i am still sticking with my goal of allocating five percent to my entire portfolio Between a mix of bitcoin and ethereum, and that's it until then anything could happen, but i see this is very exciting news and i am really excited to see where this goes long term. So with that said, you guys thank you so much for watching. I really appreciate it as always make sure to destroy the like button.

Subscribe button and notification bell also feel free to add me on instagram, i posted pretty much daily. So if you want to be a part of it, there feel free to add me there. As my second channel, the graham stefan show i post there every single day - i'm not posting here. So if you want to see a brand new video for me every single day, make sure to add yourself to that.

And lastly, if you want a totally free stock, now worth all the way up to 70 dollars, use the link down below in the description and when you use code gram you'll get a free stock within just a few minutes. It's pretty much like free money and plus i'm posting all of my own stock trades on there. So if you want to be a part of it, the link to that is down below in the description enjoy. Thank you so much for watching and until next time,.