MoneyGram, Western Union and similar companies have been eating away 1.5% of El Salvador’s GDP on remittance fees annually; will this change with Bitcoin adoption?
Crypto trader and entrepreneur Willy Woo has reminded the crypto community about the massive amount of profits Western Union and MoneyGram, and the like, have been biting off El Salvador’s GDP per year, as if hinting that the adoption of Bitcoin may fix this now.
MoneyGram and similar firms to lose $400 million per year thanks to Bitcoin
According to a CNBC article, former Ripple partner MoneyGram and Western Union remittance giants have been making huge profits on fees on cash sent to El Salvador by its citizens living and working beyond this small Latin American country.
Last year, people in the region received almost $6 billion worth of remittances, which totaled 23% of El Salvador’s GDP. Now, according to the country’s president Nayib Bukele, Bitcoin will help citizens to avoid such gigantic fees for remittances coming from their relatives abroad. These payments are received by around 70% of the El Salvadoran population.Ads
According to Willy Woo, the average sum of cash remitted to the country per month is $195—about half the income of an average family. A salary that can be earned here is $365.
Western Union and MoneyGram has been responsible for clipping 1.5% of El Salvador’s GDP through their remittance fees on the poor.
Essentially expat workers sending money home to families. $195 was the average monthly remit which was 50% of household incomes. https://t.co/vhM1OXy432— Willy Woo (@woonomic) September 10, 2021
$30 in Bitcoin for connecting to local Chivo BTC wallet
At the moment, the government of El Salvador is doing its utmost to get local residents to register with Chivo wallet, which they can use to receive Bitcoin and use it to pay for goods and services.
This wallet was launched by the government, and it does not collect fees for crypto transactions. Each person who signs up for this wallet will get $30 in Bitcoin.
Arcane Assets CIO objects
Eric Wall, chief investor at Arcane Assets, believes that El Salvador’s Bitcoin initiative is “a centralized and coercive show” as many citizens have been marching in protests against the adoption of Bitcoin as legal tender.
The government has promised to punish merchants that refuse to use Bitcoin as a legal local medium of exchange.
At the moment, local McDonald’s restaurants are already accepting BTC.
Is it just me or is the ”I just donated $30/bought a house in El Salvador” real transparent virtue signaling at this point
Am I right for getting fed up by this?
Wanna do something good? Work on contributing to Salvadorian bitcoin infra not being a centralized coercive shitshow— Eric Wall (@ercwl) September 10, 2021
Peter Schiff Names Real Reason Behind Bitcoin Drop
Popular digital assets critic believes that measures against inflation are the real reason behind the most recent market correction
The famous Bitcoin and crypto critic, Peter Schiff, provided his Twitter subscribers with a potential reason behind one of the largest corrections on the cryptocurrency market this year.
According to Schiff, Bitcoin’s correction was tied directly to the Fed’s action toward risk assets like cryptocurrencies and some stocks. Previously, Jerome Powell hinted that tapering might happen sooner than the market expects.
Risk assets like stocks & #Bitcoin are tanking simply because Powell hinted the #Fed might wrap up the taper a couple of months early and the first 1/4 point rate hike may also come a bit sooner. Imagine what would happen if the Fed was actually serious about fighting #inflation!— Peter Schiff (@PeterSchiff) December 3, 2021
In addition to the end of the quantitative easing monetary policy, Powell has stated that the point rate may be increased sooner than was expected due to the inflation’s change of nature, which has become a real threat to the country’s economic safety and stability.
All of the actions that the Fed is currently taking are designed to control inflation, which is currently hitting highs previously observed back in the Depression era.
High-risk assets like Bitcoin and other digital assets were allegedly considered a store of value for those who wished to protect their funds from increased inflation. Schiff is a widely known critic of cryptocurrencies, and he believes they should not be considered an inflation hedge.
Whales Suddenly Move $320,000,000 in Bitcoin to a Single Destination – Here’s Where the Crypto Is Headed
Crypto whales just moved over 5,800 Bitcoin (BTC) worth more than $327 million into a single destination, according to a whale-surveilling platform.
Whale Alert tells its 1.8 million followers in a series of tweets that in the last 24 hours crypto whales are relocating thousands of BTC amid a correction that saw Bitcoin tumble to a new 30-day low of $52,416.
Five of the transactions involved shifted BTC from wallets of unknown origins to popular US-based crypto exchange Coinbase. Meanwhile, one transaction moved a large sum of Bitcoin from global crypto exchange Binance to Coinbase.
Here’s a summary of the BTC transactions:
- 530 BTC worth $30.05 million transferred from unknown wallet to Coinbase
- 1,000 BTC worth $56.69 million transferred from unknown wallet to Coinbase
- 525 BTC worth $29.53 million transferred from unknown wallet to Coinbase
- 842 BTC worth $46.98 million transferred from unknown wallet to Coinbase
- 1,000 BTC worth $54.69 million transferred from Binance to Coinbase
- 2,000 BTC worth $109.06 million transferred from unknown wallet to Coinbase
While crypto investors tend to be concerned that a massive influx of Bitcoin into the crypto exchanges might indicate downward selling pressure, insights firm Into the Block reports that centralized exchanges recorded more outflows than inflows during the past week.
The crypto intelligence platform says,
“Bitcoin recorded nearly $2 billion in net outflows from centralized exchanges, the highest level in five weeks.”
At time of writing, BTC is down nearly 7.14% on the day to $52,557.
Ethereum Price Analysis: ETH drops 25 percent from previous swing high, ready to recover?
- Ethereum price analysis is bullish today.
- ETH/USD rejected further downside at $3,600.
- Previous support at $3,950 is currently tested as resistance.
Ethereum price analysis is bullish today as we expect further recovery to follow after a strong reaction higher from the $3,600 was seen this morning. Likely ETH/USD is set to break above the current resistance, moving to regain even more over the weekend.
The market has seen strong bearish momentum over the last 24 hours. The market leader, Bitcoin, has lost 17.23 percent, while Ethereum 14.83 percent. Meanwhile, the rest of the market has seen even more substantial losses.
Ethereum price movement in the last 24 hours: Ethereum breaks below $3,950 previous support, rejects more downside at $3,600
ETH/USD traded in a range of $3,739.39 – $4,647.29, indicating extreme volatility in the market. Trading volume has spiked by 113 percent, totaling $41.2 billion, while the total market cap trades around $465 billion, resulting in the market dominance of 21.16 percent.
ETH/USD 4-hour chart: ETH reacts back to previous lows
On the 4-hour chart, we can see the Ethereum price swiftly rejecting further downside after touching the $3,600 mark this morning.
Ethereum price action saw strong bullish momentum during the first half of the week. After establishing and retesting the new low at $3,950 last weekend, ETH/USD started to move higher on Monday quickly.
Ethereum reached $4,750 resistance by Wednesday, as bulls were eager to move towards the previous all-time high. However, more upside did not follow, leading to a reversal over the next days.
Another attempt to test upside was seen Yesterday, with the following rejection leading to a strong spike lower. Overnight, the Ethereum price broke past the previous swing low at $3,950, leading to more downside this morning. Strong reaction, preventing further downside, was seen at $3,600, with ETH/USD since moving back towards the previous low.
Ethereum Price Analysis: Conclusion
Ethereum price analysis is bullish today as we saw a swift drop to $3,600 met with a strong reaction higher this morning. Therefore, we assume ETH/USD has set a new swing low, and further recovery should follow over the weekend.
While waiting for Ethereum to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.