Connect with us

Bitcoin

El Salvador: + 45% in remittances

Published

on

In 2021 in El Salvador, remittances of money sent from abroad increased by 45%. 

This was reported by Documenting Bitcoin on Twitter citing data on remittances from the manager of international technological and economic affairs of El Salvador.

Advertisement

In total, these remittances, 95% from the USA, would represent as much as 23% of the entire GDP of the country, and would benefit about 360,000 families, or an important percentage if compared to the six and a half million total inhabitants.

Historically, according to data from the World Bank , the growth in the value of remittances received by El Salvador in proportion to GDP has been growing since 2016, after reaching a peak in 2007, i.e. before the great global financial crisis.

Although there was already a big growth in 2020, with this percentage going from 21% to 24%, 2021 would have marked an even more important increase.

Advertisement

It is possible that the adoption of bitcoin also contributed to this increase.

In fact, it is known that in 2021 the use of apps for the exchange of BTC literally exploded in the country, in particular those based on Lightning Network that allow practically immediate transfers and with negligible costs.

Unfortunately, neither the number nor the volume of transactions made on LN are publicly available data, so there is no way to calculate or retrieve this data. However, in 2021 there was a real surge in the use of Lightning Network, with the number of channels to date increased by 61% compared to the beginning of the year, and the volume of immobilized BTCs almost doubled, from 1,058 to over 2,000.

Advertisement

Furthermore, it is no coincidence that at the beginning of June El Salvador decided to adopt bitcoin as the legal tender currency in the country, alongside the US dollar, although this law will only become effective from September.

On the other hand, if a substantial part of the new remittances arriving from abroad is sent in BTC, via LN, it would make perfect sense to be able to spend these bitcoins in the country without necessarily having to change them into dollars. It will then be the merchants who will probably make the exchange using special platforms that also allow, if desired, the immediate exchange at market price.

It should be remembered that for those who receive such remittances, if they were sent in dollars, a negligible percentage of the funds sent do not reach their destination because they are retained by the inevitable intermediaries. With bitcoin on Lightning Network, on the other hand, almost 100% of the funds sent reach their destination, and there is no need to rely on intermediaries.

Advertisement

Moreover, there are also other countries in the world in similar situations, so if starting from September the real experiment underway in El Salvador should prove to be successful, it is conceivable that other countries in similar situations could also take similar initiatives.

News Source

Advertisement

Bitcoin

Bitcoin Drops as China Declares Crypto-Businesses Illegal

Published

on

  • 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.

Advertisement

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.”

Advertisement
Continue Reading

Bitcoin

Can Bitcoin Surpass $6,000,000? Ethereum and Polkadot Creator Details Possible Future of Crypto

Published

on

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.

Advertisement

“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.”

Advertisement

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.”

Advertisement

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.”

News Source

Advertisement
Continue Reading

Bitcoin

Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

Published

on

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.

Advertisement

“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.

Advertisement

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.

Advertisement

“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.”

News Source

Advertisement
Continue Reading

Trending