Bitcoin Usage Declines Amid Economic Improvement in El Salvador, Finds Survey
Summary:
A recent survey in El Salvador showed a decline in Bitcoin usage with only 12% of the population using it for transactions in 2023, down from 24.4% in 2022. Most Bitcoin expenditure went to groceries and supermarket items, with some used for veterinary services. While acknowledging slight improvement in their life due to Bitcoin's legal tender status rose from 3% to 6.8%, most Salvadorans attributed improved economy to crime reduction. The government's Bitcoin investment was left unquestioned, despite public disapproval.
The annual research conducted by the José Simeón Cañas Central American University in El Salvador reveals that 12% of Salvadorans utilized Bitcoin at least once for transactions in the previous year. Carried out in December 2023, the study involved 1280 participants, interviewed at their residences. Among those who made purchases with Bitcoin, 49.7% used it one to three times, while 20% used it ten or more times. Strikingly, the majority of Bitcoin was spent on groceries (22.9%) and supermarket purchases (20.9%), with veterinary services (15%) following closely.
Despite El Salvador's law offering citizenship to Bitcoin investors, the study indicates a decrease in Bitcoin usage, from 24.4% in the 2022 survey. While the number of Salvadorans acknowledging an improvement in their family's life due to the national acceptance of Bitcoin has slightly increased from 3% in 2022 to 6.8% in 2023, the vast majority (34.3%) attribute the improved economic conditions to a decrease in criminal activity (24.3%), with a mere 0.5% crediting Bitcoin.
Interestingly, the extensive 45-page survey didn't explore the government's Bitcoin investment. In the previous year, 77.1% of participants expressed a desire for the government to stop investing public funds in Bitcoin. The “Nayib Bukele Portfolio Tracker,” which monitors changes in El Salvador's Bitcoin holdings, indicates a current profit of 0.57%. These revelations come despite initial doubting of Bitcoin guru Eric Balchunas' prediction of successful Bitcoin ETF ventures.
Published At
1/17/2024 1:16:09 PM
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