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The Bitbuy Brief: Who wants to move to El Salvador?
Article Author: Ziad El-Shourbagy
Ziad El-Shourbagy
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Issue 138: June 10, 2021

Thursday, June 10th, 2021

Bitbuy Product Update

Due to a recent stabilization in ETH network gas fees, we’ve lowered our mining withdrawal fee and minimum withdrawal amount for Ethereum.

 

Weekly Market Update 

Analysis: The market had a relatively volatile week, with prices of Bitcoin and other top cryptocurrencies dropping 10%+ on Monday & Tuesday, and recovering by about the same amount on Thursday. Spot market volumes continue to trade below 30 day averages, is down across the market approximately 16% week over week.

Big Story: Is El Salvador The New Bitcoin Capital?

Anyone wants to move to Central America? ️

El Salvador is quickly becoming one of the most popular countries for Bitcoin fans, after a pair of BIG announcements this week.

First off and most importantly, the country has formally adopted Bitcoin, the world’s biggest cryptocurrency, as legal tender in the country. After being introduced to Congress as a bill this past Saturday, it was officially passed on Wednesday and will take effect in 90 days.

This means that any business in the country will have to accept Bitcoin as payment for services or goods, unless they lack the technology to do so. No one will be forced to use Bitcoin, but it will be a secondary option for businesses and citizens to use for transactions.

Along with the announcement, the president of El Salvador, Nayib Bukele has actively engaged the global crypto community, putting the country on the radar of many.

El Salvador has taken this historic step, for a few reasons. First off, to allow more of its citizens to access a fair and global financial system. Currently, 70% of Salvadorans do not have a bank account. Through education and widespread acceptance, the hope is that these citizens can be onboarded to Bitcoin without facing the same barriers they faced with the traditional financial system. This will also assist the millions of Salvadorans working abroad in sending money to friends and family, as they’ll be able to avoid expensive money transfer fees to intermediaries.

Secondly, the move is expected to entice cryptocurrency entrepreneurs and investors to invest in the El Salvador economy, and create jobs and opportunity. Any entrepreneur, who invests over 3 BTC in the El Salvador local economy, will now have the opportunity to get permanent residency.

President Bukele went on to say, “Bitcoin has a market cap of $680 billion. If 1% of it is invested in El Salvador, that would increase our GDP by 25%”

The second announcement of the week may not be as important, but it definitely sounds pretty cool. President Bukele said on Wednesday that he has told geothermal companies in his country to develop a plan to mine Bitcoin from energy produced by El Salvador’s volcanoes.

You read that right, volcanoes! Volcanoes are a great source of renewable energy in the country, and would help the cause of moving Bitcoin off environmentally harmful energy sources.

New On Bitbuy Resources

It started with Microstrategy, Tesla and Square Inc, but it’s a strategy that businesses of all sizes are looking at. It’s estimated that there are now thousands of companies now globally, that hold Bitcoin on their corporate balance sheet due to it’s attractiveness as a deflationary asset.
Our latest article explores digital asset allocation for corporate treasuries, results, and the main reasons this trend is catching on.

Other Headlines & News

Cryptocurrency trading is stopping people from looking for full-time jobs: CareerBuilder CEO – Yahoo! Finance
Interactive Brokers will offer crypto trading by the end of the summer – CNBC
How cow poo is powering crypto mining – BBC News
Bitcoin mining software company Luxor raises $5 million in a Series A funding round – The Block 
A shift just happened in the Bitcoin-Ethereum ratio – Bloomberg
UpOnly Podcast: Bitcoin Miami wrap up and discussing the current state of crypto  Apple Podcasts