The Salvadorian media has continued to react skeptically to crypto-related developments as the country edges toward bitcoin (BTC) adoption.
A number of international crypto figures traveled to El Salvador late last week, including Brock Pierce, the head of the Bitcoin Foundation, who tweeted – in a post that drew no shortage of ire from the wider crypto community – that he was “very honored to lead” an “official delegation of bitcoin ambassadors to El Salvador.”
With a new law on its way, President Nayib Bukele and his government have continued their charm offensive – entertaining a number of international crypto players in recent days and appearing on crypto podcasts.
But while there were plenty of photo opportunities for one and all, the Salvadorian press, much of which appears to hostile to everything Bukele-related, was not exactly dazzled by the visit of Pierce et al.
In a report from El Diario de Hoy publisher ElSalvador.com, the media outlet instead chose to focus on past Pierce controversies, including tether (USDT)-related fraud investigations in the United States. It also pointed out that aside from a lot of photos, precious little in terms of the content of the meetings had thus far been revealed.
The media outlet went on to quote the journalist and writer Andrés Oppenheimer as musing that the new bitcoin law might be “another media maneuver by Bukele,” aimed at “diverting public attention from international criticism of the growing authoritarianism of his government.”
Oppenheimer said that Bukele’s move would “likely attract drug traffickers and not digital investors.”
The same outlet reported, separately, that a professor of Electrical Engineering at the University of El Salvador named Carlos Martínez had claimed that the country “does not have the capacity to cope” with a mining project of the scale Bukele has spoken of, and that the move “would raise electricity tariffs for Salvadorans.”
Martínez also said that the energy provider tasked with the project had been underfunded for the past five years, meaning, per the professor, that an operation of this sort – which is set to use geothermal energy from a volcano – would be impossible to complete.
There was more nay-saying in another major newspaper, with La Prensa Gráfica publishing a column from the influential Salvadorian writer and novelist Jacinta Escudos, who wrote that “the introduction of [BTC as legal tender] involves too great an investment risk, both at the individual level and at the level of public finances and the country’s reserves.”
She concluded by asking:
“Is it worth risking so much to make such a leap into the void?”}
Meanwhile, on Twitter, a row has erupted after Pierce, on June 18, posted an article and front-page image from a newspaper named Noticia on his feed, claiming that his and the “delegation’s” “visit to El Salvador” had “made worldwide news.” He concluded, “We’re making history.”
However, his post was met with derision from many on Twitter, with some accusing the entrepreneur of forging or photoshopping the spread. Others rushed to his defense, with Justin Newton, the CEO of Netki, posting an image of the print version of the newspaper in question, with Pierce, Bukele, and a physical representation of a bitcoin token on the front page.
Newton had claimed he had “picked up the paper” in the lobby of his El Salvador hotel.
Bitcoin proponent Udi Wertheimer opined that “bitcoin twitter” had been “too quick to judge about something they don’t understand again because it involved a person they don’t like.”
The truth of the matter, however, appears to be something a little more mundane – the stuff of myth-buster investigations. It turns out the article in question and the newspaper are indeed genuine.
But the publication is actually a free, weekly community newspaper based in New York, covering events throughout the Latin American region – and often distributed free to Central American hotels with large numbers of international tourists. Not quite a Salvadorian media outlet, per se, nor a “worldwide” news outlet in some senses of the term – but it seems far from a fake.
Bitcoin Drops as China Declares Crypto-Businesses Illegal
- China declared that cryptocurrency-related businesses are illegal
- Bitcoin, Ether, and stablecoin Tether do not qualify as legal tender in China
- BTC drops in price as the announcement went out
Once again, China reiterated its antagonistic stance on Bitcoin and the cryptocurrency industry as a whole.
In an announcement, the People’s Bank of China (PBOC) mentioned that BTC, ETH, and USDT are not legal tenders in China. They added that these cannot be used in the currency market.
Additionally, the central bank deemed all crypto-related businesses as illegal. This includes overseas exchanges serving residents within China and derivative transactions.
Following the news, Bitcoin’s price fell by almost $2,000 as the news circulated. This has been a common pattern whenever China FUD comes out.
Earlier, China also reiterated its stance on crypto trading and mining while testing the Digital Yuan. According to the PBOC, it will continue releasing regulatory pressure over the crypto trading industry.
Despite the negative news, many analysts remain bullish on Bitcoin and the cryptocurrency industry as a whole. According to analyst Lark Davis, this is not new and will happen again in the future.
In a tweet, Davis mentioned that “The year is 2025, #bitcoin has just corrected from 400k to 250k on China banning BTC fears.”
Can Bitcoin Surpass $6,000,000? Ethereum and Polkadot Creator Details Possible Future of Crypto
Early Bitcoin developer and co-founder of Ethereum and Polkadot, Gavin Andresen, is outlining a future where BTC rises to a staggering $6,000,000 per coin.
Gavin Andresen, who took over as Bitcoin’s lead maintainer from founder Satoshi Nakamoto in 2011, just published a new blog post detailing how BTC’s theoretical evolution could look.
Andresen describes a “possible” scenario where Bitcoin hits a price tag of $6,000,000 by 2061, transaction fees 326x higher than they are now, and the blockchain is used chiefly by whales.
“Imagine: it is the year 2061. The BTC price is six million US dollars – equal to about a million 2021 dollars because of inflation.
Miners are being rewarded 0.006103515625 BTC per block, plus transaction fees of about 5 BTC for 4,000 or so transactions ($7,500 per transaction).
But most BTC transactions don’t happen on the BTC network. Most BTC is locked up in multi-signature outputs secured using multiparty computation and mirrored on another chain as ‘wrapped’ tokens.”
In his scifi scenario, Andresen says those who do remain on Bitcoin’s network will be incentivized to keep it alive.
“The transactions that do occur on the main BTC network are high-value, mostly between super-whale-size holders…
These whales maintain the BTC network forever. They are the miners and the transaction creators; they don’t care how high transaction fees go, because they receive as many fees as they pay.”
However, Andresen says that by 2100, even those users would likely leave the blockchain.
“In the year 2100 the whales notice that the mining reward is basically zero… Eventually, there are zero new BTC being produced on the BTC network, and zero BTC circulating on the BTC network. There is nothing left to secure, and the chain stops.”
Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone
Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone
Crypto trader Michaël van de Poppe is looking at what’s ahead for Bitcoin (BTC) and the smart contract platform Cardano (ADA).
The analyst tells his 420,000 Twitter followers that the best entry point for Cardano may be gone after the asset bounced off a key support level at $1.86.
“If you want to get into Cardano, this was the region where you would want to get into it, and the higher low that might be created.
So based on the daily timeframe, the best entry might be gone, but you’re still getting a better entry than the ones who have been buying around $2.80.”
Van de Poppe is now looking to see if ADA can turn resistance at the $2.37 level into support.
If the markets correct further, he is keeping an eye on the $2.15 level as a potential buy zone.
“When you’re looking at the four-hour time frame, I think you’re getting the exact same view as what you have right now on Bitcoin and [Ethereum], actually. So you’re going to look for an entry point which is around the fact of $2.15, so anything in this region might be a good entry point if we get a corrective move.”
Looking at the Bitcoin pair, van de Poppe thinks that ADA will most likely consolidate briefly after retesting support at its previous all-time high.
“We can see that we’ve had a beautiful retest of the previous high here too, and therefore some consolidation is most likely going to take place before we’re going to have new impulse waves.
So both the USDT and BTC pair are looking for continuation, and I think that’s just great, and I think that’s just what we want to see with the markets right now.”
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