El Salvador Bitcoin Law

El Salvador Bitcoin Law

Art. 7. Every economic agent must accept bitcoin as payment when offered to him by whoever acquires a good or service.

1 Bitcoin = 6,400 BigMacs – A New Record High

The bitcoinppi measures the value of bitcoin by its purchasing power of a worldwide available and uniform item – the Big Mac hamburger. This makes the bitcoin purchasing power index agnostic to monetary policy. The bitcoinppi hence lets you express bitcoin’s value in a central bank independent way. Much similar to how bitcoin operates technologically as a currency and payment network.


The BigMac Index was invented by The Economist in 1986 as a lighthearted guide to whether currencies are at their “correct” level. It is based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in this case, a burger) in any two countries.

Burgernomics was never intended as a precise gauge of currency misalignment, merely a tool to make exchange-rate theory more digestible. Yet the Big Mac index has become a global standard, included in several economic textbooks and the subject of dozens of academic studies. For those who take their fast food more seriously, we also calculate a gourmet version of the index for 55 countries plus the euro area.


The Lightning Trifecta

Question: what do Twitter, Square and Lightning Labs all have in common?Answer: Jack Dorsey and the future of the Lighting Network.

Jack Dorsey is the CEO of Twitter, CEO of Square/Cash App, and a major investor in Lightning Labs.

On February 5, 2020 Lightning Labs announced a $10 million Series A investment round. Lightning Labs has three products: a lightning network server (LND), a lightning network client specification (Neutrino), and a lightning payment channel service (Loop).

The combination of consumers from Twitter, merchants from Square, and technology from Lightning Labs should be the perfect trifecta for sparking significant growth in the lightning network over the next few years.

Here are the numbers. Twitter has over 300 million users worldwide. There are several million Square merchants and the Cash App consumer application has over 15 million users.

The lightning network will be the ‘killer app’ that drives Bitcoin adoption.

Congress considers Bill enabling tax-free Lightning Network Bitcoin transactions

The Virtual Currency Tax Fairness Act of 2020 is a bipartisan (3 page!) bill that will create a de minimus exemption for crypt currency capital gains below $200. If this bi-partisan bill is passed it will be an enormous boost for the Lightning Network and indirectly for the value of bitcoin as the underlying currency. Please tell your congressperson to vote yes and you will contribute some satoshis to their next campaign.