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Bitcoin price sees a spike after El Salvador passes a bill to make it legal tender.

El Salvador's President Nayib Bukele predicted that Bitcoin will ultimately see a "gigantic price increase" due to its limite
El Salvador’s President Nayib Bukele predicted that Bitcoin will ultimately see a “gigantic price increase” due to its limited supply of only 21 million digital coins.

Bitcoin witnessed a noticeable surge in its price on Wednesday after El Salvador passed a law to adopt bitcoin as legal tender. The cryptocurrency is trading near $47,000 at the time of writing, 8% up in the last 24 hours. Lawmakers in the Central American country passed a law that made bitcoin legal tender. Among other things, it means prices can now be shown in bitcoin, and tax contributions can be paid with the cryptocurrency.

Crypto enthusiasts welcome El Salvador’s decision.

Crypto enthusiasts who have long seen the digital coin as a viable alternative to fiat currencies welcomed El Salvador’s move to make bitcoin legal tender. El Salvador struck a partnership with digital wallet company Strike to build the country’s modern financial infrastructure using bitcoin technology. Following El Salvador’s news, bitcoin and other cryptocurrencies got a lift as ether and XRP were both trading higher. Bitcoin is still significantly off of its record high of $64,829.14 that was hit in April.

The Central American country created history after it passed a bill making bitcoin legal tender in the country. Where bitcoin is treated as a threat to the financial sovereignty of a country, El Salvador has gone ahead made it a legal tender. This move has put the Central American country ahead of many countries in crypto acceptance. Bitcoin is a decentralized cryptocurrency that eliminates the central authority that issues the currency. Bitcoin has come a long way since its inception over a decade ago. The whole world will closely monitor the case of El Salvador and how its pro-bitcoin experiment changes the financial situation in the country.