What is Bitcoin
Bitcoin is shaping to be the most disruptive financial innovation in over 100 years. The peer to peer distributed protocol allows two entities to transfer value over the internet without the need for a third party.
Furthermore, bitcoin was released to the world on January 3rd, 2009 by an anonymous Satoshi Nakamotto, no one knows the true identity of bitcoin’s creator. Further adding the altruistic wealth distribution potential the network could create.
Over the past 13 years, governments and media made it their mission to squash any adoption of the world’s first cryptocurrency. Except, as of June 2021, 2 small nations have codified bitcoin as legal tender. Leading the way for more freedom for their citizens, and opening up more people to financial freedom.
El Salvador
El Salvador made history on the 8th of June, 2021, when President Nayib Bukele pushed the El Salvadorian Supreme Court to vote on bitcoin legalization, making bitcoin legal tender alongside the U.S. Dollar. Needless to say, the International Monetary Fund (IMF) was not happy.
Bitcoin is not subject to capital gains taxes, and foreigners who invest over ₿3 are eligible for permanent residence. Long term hodlers should at least consider having this residence permit as there is the possibility of citizenship. Depending on the exchange rate at the time, the cost would be greatly cheaper than paying capital gains taxes over time in a western country, such as the US.
El Salvador over the years has been working towards creating a safe, modern, and desirable place to live in Central America. Crime has been a huge issue, however, Where to Expat believe El Salvador will be one of the best places to live in the coming years.
Central African Republic
The Central African Republic (CAR), like El Savador, enabled bitcoin as legal tender on 27th of April, 2022. The CAR is not a well known African country. However, the country is rich with resources, and it has been plagued with a poor human rights record. The country has taken a major step in a remedy to its past and create more freedom for its citizens.
The CAR is one of the poorest nations in the world, with a GDP per capita of about $400. CAR does not offer any sort of residence permit for bitcoin hodlers at this time. But the country will inevitably turn into the bitcoin hotspot for innovation and wealth creation over time. The CAR is a country to keep your eyes on over the years. The potential is unlimited.
Conclusion
El Salvador and CAR are not the only countries that will legalize bitcoin as legal tender. The global instability going into 2023 could lead to at least 2 more nations picking up the orange digital coin. Only time will tell.