El Salvador Pushed For Bitcoin. Now It's Dealing With The Risk

El Salvador pushed to make bitcoin a legal tender, but fluctuations in interest and inflation haven't encouraged a steady result.

As Bitcoin becomes more adopted at an institutional level, major fluctuations in price will have a much larger consequence around the globe than they might have before. 

This has already happened in El Salvador this year. In March, a major sell-off of Bitcoin wiped out more than $300 billion in value.

The panic was driven by a mass withdrawal of riskier assets thanks to rising interest rates, inflation and the economic fallout from Russia's invasion in Ukraine. While that may be bad news for many investors around the globe, it actually encouraged El Salvador's government to invest even more.