#PEOPLE The betrayal of El Salvador? The warning brought by the big plunge of Bitcoin again

Today is the fifth day of the lunar new year, which should have been a day to welcome the God of Wealth. However, El Salvador has brought a "special gift" to the global market. With Bitcoin experiencing another significant plunge, the core assets of the cryptocurrency market have once again sparked discussions. From El Salvador's initial adoption of Bitcoin as a legal tender to being forced to change its policy due to fiscal and international pressure, El Salvador's "Bitcoin experiment" has drawn thought-provoking conclusions. At the same time, the price fluctuations of Bitcoin also serve as a reminder that the risks and challenges of cryptocurrencies far exceed imagination.
"Adventure" in El Salvador begins.
In September 2021, El Salvador became the first country in the world to adopt Bitcoin as its legal tender, opening a historic new chapter. President Nayib Bukele hopes to help the country break free from the "shackles" of the US dollar and achieve "financial independence" in this way. To encourage the use of Bitcoin, the government not only provides a $30 Bitcoin subsidy, but also introduces an official wallet called "Chivo" and Bitcoin ATMs nationwide. These measures once filled global cryptocurrency enthusiasts with anticipation, and El Salvador seemed to become a pioneer in the world of digital currency.
However, things did not develop as expected. With the drastic fluctuations in the price of Bitcoin, many problems have gradually been exposed in this financial experiment. Most Salvadorans do not have the conditions to use Bitcoin, and the popularity of the "Chivo" wallet is far lower than expected. Especially when Bitcoin experiences a major plunge, the government's "buying the dip" strategy did not achieve significant results, but instead increased the financial burden.
Bitcoin plummeted, El Salvador's difficult decision
Today, Bitcoin has encountered another sharp decline, prompting us to review the experience in El Salvador. Due to the volatility of Bitcoin, El Salvador is under immense pressure. Due to the inadequate digital infrastructure and the general lack of understanding of cryptocurrencies, coupled with the excessive volatility of Bitcoin, the changes in the wealth of Salvadorans often deviate greatly from the government's expectations. In fact, most Salvadorans do not care about Bitcoin; they are more concerned about finding jobs, stable lives, and coping with inflation.
The sharp drop in Bitcoin has also brought tremendous financial pressure to the Salvadoran government. According to statistics, the Salvadoran government has purchased a large amount of Bitcoin as a "shield", but as prices fall, the country's foreign exchange reserves and fiscal situation also face huge challenges. The International Monetary Fund (IMF) has repeatedly warned that if El Salvador continues to promote Bitcoin as legal tender, it may lose external loan support, thereby affecting the country's financial stability.
Finally, the Salvadoran government had to make a difficult decision: to modify the Bitcoin law, cancel the mandatory acceptance of Bitcoin by businesses, and even no longer allow Bitcoin to be used for tax payments. El Salvador's ambitious 'Bitcoin experiment' quietly came to an end.
Reflection: Risks and Challenges of Cryptocurrency
The adventure of El Salvador tells us that promoting cryptocurrency is not smooth sailing. Although Bitcoin is in technology and philosophy