El Salvador presents a new argument to its critics. A recent survey reveals that only 7.5% of Salvadoran citizens use Bitcoin 
$91,671 for transactions, while a significant 92% do not. Some may view these figures as indicative of the experiment’s failure.
Current State of Bitcoin Usage
With a population of approximately 6.3 million, this means around 475,000 residents are using Bitcoin in their everyday transactions. The fact that nearly half a million citizens incorporate BTC into their daily lives is noteworthy. Additionally, due to the Lindy effect, this proportion is expected to rise over time.
In its early days, the country faced intense criticism from opposition regarding the adoption of Bitcoin to reduce the costs of cross-border transactions and stimulate the Salvadoran economy. However, the possibility that hundreds of thousands of citizens are using BTC is quite impressive.
Past Experiences and Future Outlook
Given El Salvador’s history of failed monetary regimes, widespread adoption of this new payment technology was not anticipated from the outset. Building trust in any new system takes time.
“Bitcoin should first be adopted as a store of value, then can serve as a medium of exchange.” – Nikolaus.
As he noted three years ago, Nikolaus believes that after being adopted as a store of value, Bitcoin could eventually function as a medium of exchange. Today, even as a $1.4 trillion asset, Bitcoin occupies a small space in global wealth.
There remains a widespread perception that Bitcoin is risky, and this mindset must change before more individuals begin using it daily.
Still in its early stages, cryptocurrencies like Bitcoin, which is not even 20 years old, represent a developing asset class. As it grows, it gains more trust, experiences price increases, and offers more user-friendly solutions for non-technical users.
For greater global adoption of Bitcoin, higher prices, ease of use, and reliability will be essential. The timeline for these developments remains uncertain. Currently, the proportion of Bitcoin users in El Salvador stands at 7.5%.
In conclusion, the slow pace of Bitcoin’s adoption indicates that both technology and society will take time to adjust to this new payment method. Education, trust-building measures, and technological advancements will play critical roles in increasing usage rates.
