The BitcoinLaw has been approved by a supermajority in the Salvadoran Congress | Hacker News Reader

The BitcoinLaw has been approved by a supermajority in the Salvadoran Congress

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51 pointspgirard9 comments

Another discussion on front page:

https://news.ycombinator.com/item?id=27447757

And this one 4 days ago:

https://news.ycombinator.com/item?id=27408683

Still to settle btc transactions you need an L2 network right. Which is basically just a smaller and more arbitrary collection of nodes, aka less decentralized.

Decentralization and processing speed + gas fee is inversely correlated it seems like. L2 is just a fancy way to reduce decentralization and thus gas fees.

It's less decentralized, but it still gains from the decentralized nature of Bitcoin. The "settle up" transactions and the "punishment" transactions take place on the L1 blockchain. If someone tried to cheat the lightning network, they would fail unless they were also able to cheat the L1 network, as my "proof that you tried to cheat me" is submitted and validated in L1, not L2.

I read the speech that the president gave on this to a cryptocurrency conference. It seems .. oddly advised.

The speech itself seemed to contain a very basic 1% fallacy - "Bitcoin has a market cap of X billion, if we can attract just 1% of that to El Salvador as investment...."

Oh well, good luck to them I guess.

I'm surprised they didn't choose Banana Coin

https://www.investopedia.com/terms/b/bananacoin.asp

I'm not familiar with the details of the law - does this imply that Bitcoin is now an official foreign currency?

I found:

https://www.wsj.com/articles/el-salvador-becomes-first-count...

El Salvador Becomes First Country to Approve Bitcoin as Legal Tender

Designation allows bitcoin, which has struggled as a method of payment because of its high volatility, to be used to pay taxes and obligates business to accept it

> obligates business to accept it

That's annoying.

So the money you make in a day is suddenly down 15% and takes time to exchange for fiat, meanwhile you're just trying to pay rent, payroll, bills and purchase orders in a timely and efficient manner. Great.

I feel like the citizens of El Salvador may have different standards as to what is an acceptable level of volatility in their currency.

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