While Bitcoin is seen as an excellent opportunity for long-term investments on a personal level, it serves several purposes for nations. Like individuals, nations encouraging participation in Bitcoin trading can redefine their economies.
Thus, such opportunities were more remarkable for developing economies or nations once subdued by colonialism, and the case is no different for Central America.
The US and Central America Tug-of-War
Central America’s geopolitical sphere is a dynamic one that began with the US expansion into its territory. While the year 1813 marked a series of Spanish American Wars of Independence, it also strengthened the opportunity of European nations like France ad England to expand into these territories.
However, the USA left no stone unturned as an obstacle to the former’s aspirations. Consequently, Central America started banking upon the US for protection from Mexico and other nations. On the declaration and recognition of these nations as sovereign, several notable events rocked the whole of America, the Civil War being one of the most remarkable.
Central America: The Worst Hit Victim of Civil War
While the Civil War marked an end to slavery in America, it also changed the nation’s perspective on the global economy. Hence, the nation started investing in several economic sectors, from bananas and coffee to silver mines.
America also spent considerable but lesser resources on government securities. While investments in Central America shot up to $40 million by the beginning of World War 1, the US considerably invested more in bananas and coffee. The whole nation’s economy had the chance of crashing if the demand for such products went downhill.
With the conclusion of the World War, the expected already happened, pushing the nation into deep poverty. With crippling industries and widespread unemployment, the nation was pushed into a debt trap. The local governments were forced to borrow money from the US, though the latter paved the way for the downfall. However, such nations still have enough hope with the new economic trajectory set by Bitcoin.
Bitcoin to Relieve Developing Nations
With Central America facing the worst of its economic downfall, Bitcoin might show it a ray of hope. The strong privacy offered by cryptocurrency and its ability to protect nations against a depreciating currency are all factors for its growing popularity.
Thus, apart from being an increasing investment plan for individuals, Bitcoin may serve enough benefits to developing nations like Central America.
Bitcoin to Revive Central America
Financial experts believe encouraging such nations in Bitcoin mining can help them revive industries and thrive well.
Thus, nations like Central America can move out of the clutches of global powers like the USA and develop their economy to combat poverty and unemployment.
El Salvador is also digging up new energy resources to add a sustainable dimension to this approach to encourage Bitcoin mining in such areas. No wonder a successful setup would mark a brighter future for the country.