The Troubled Economy of El Salvador | Economics Explained

El Salvador has become the first country to adopt Bitcoin as legal tender, aiming to boost its economy and attract foreign investment. The country previously used the US dollar due to the inefficiencies of its own currency. While Bitcoin adoption presents opportunities, it also faces challenges due to El Salvador's economic conditions. The video explores the implications of this move, the concept of dollarization, and the lessons on inflation, highlighting the complexities of using cryptocurrency as a national currency.

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