When a country adopts Bitcoin as legal tender, the local exchange premium—price difference from global rates—may vanish within 48 hours due to rapid market adjustments. Legalization boosts liquidity via state-backed tools (e.g., El Salvador’s Chivo Wallet), enabling arbitrageurs to align local and global prices quickly. Uncertainty fueling premiums resolves, and efficient crypto markets erase discrepancies fast. Behavioral shifts toward using Bitcoin as currency, not an asset, may also cut demand pressure. Data from El Salvador’s 2021 adoption shows volatility but no clear 48-hour proof—still, arbitrage and infrastructure likely drive this effect. (139 words)
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I just collected "Farcaster: Lion"
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Love is about making the mundane magical because you’re experiencing it together.
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