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El Salvador’s Bitcoin Beach Town El Zonte Shows Crypto Economy

El Salvador’s Bitcoin Beach Town El Zonte Shows Crypto Economy



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4 Comments

  1. >Edgar Magaña was in town from San Salvador to convert $50 to bitcoin. He inserted the dollars into the machine and was surprised to see only $47 in bitcoin fractions credited to his account on his phone.
    “They took three dollars commission,” Magaña said, adding that he had understood there was no commission. “This is like in the banks.”

    This part made me laugh out loud though.

  2. This article isn’t new, and based on what I’ve read, people on Reddit try to paint a a very cherry picked pro-Bitcoin image of it.

    From the article:

    >David Gerard, author of “Attack of the 50 Foot Blockchain,” said El Zonte is an artificial demonstration.At Bitcoin Beach, he said, “the bitcoins are traded inside Strike. They don’t actually move on the bitcoin blockchain or anything.”

    Having a for-profit company, Strike in this case, control your balance and the movement of your money just creates a Bitcoin version of a regular bank.

    ​

    >El Zonte even has a Bitcoin ATM, which gives dollars in exchange for bitcoin or takes dollars and gives credit in bitcoin.Edgar Magaña was in town from San Salvador to convert $50 to bitcoin. He inserted the dollars into the machine and was surprised to see only $47 in bitcoin fractions credited to his account on his phone.“They took three dollars commission,” Magaña said, adding that he had understood there was no commission. “This is like in the banks.”

    The exchanges I use would at most charge you $0.1 for converting $50 (USDT) to/from Bitcoin (<= 0.2%). A 6% fee is insane especially considering Salvadoran people who want to convert are like fish in a barrel for these companies now.

  3. With this and all the other places integrating crypto into their everyday economy we will be seeing *laboratories of crypto adoption* all over the world. It will be a major boost in confidence if crypto is seen working as a useful and lucrative cash and investment vehicle in places with friendly regulation.

What do you think?

Cryptopolitan

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“Bitcoin is too volatile” — Stock Market Crash – Flash Crash May 6, 2010