Kanchanara | Unsplash
Bitcoin has reached $43,000, and it is time to ask ourselves what events have happened in this regard. Its price has had a recovery since yesterday, starting from $42,283.53 to be precise.
It seems that the market has been responding favorably for at least a week. We can even notice it by its volume, which was about $9.6 billion on January 29th and now it is $14.6 billion, demonstrating a very important financial flow for its momentum.
Nayib Bukele's victory in the presidential elections allowed him to be reelected as the president of El Salvador. We are talking about a landslide victory with over 85% of the votes, which demonstrates support for his government and management.
Nayib Bukele at the National Palace
Let's remember that El Salvador introduced Bitcoin as legal tender back in September 2021. Since then, it has been one of the iconic countries in terms of cryptocurrency adoption. There have even been repeated purchases of a large number of BTC units as a strategy to maximize profits, although it was made clear that there would be no intentions to sell regardless of the situation, as there is full confidence that this cryptocurrency will achieve enormous growth in the future.
The government had also introduced the Volcano bonds, which would ensure a greater presence in the capital market. As expected, their use would be related to the management of Bitcoin. In this way, El Salvador is one of the countries that has taken the most initiatives or policies to achieve greater adoption of Bitcoin in the country and serve as an example for others.
However, it should be clarified that there is no support from the IMF for the policies imposed in the country. The International Monetary Fund sees that the measures to take Bitcoin as legal tender imply risks that could be avoided, such as high volatility that endangers the finances of consumers, as well as their protection.
In my opinion, I cannot assure that Bukele's image alongside his ideas has any degree of influence on world leaders. But the truth is that an inclination towards definitive adoption may be increasingly present. For example, in the case of my country, it is now possible to establish rental contracts in the real estate market using Bitcoin, thanks to a decree signed by Javier Milei, the current president of Argentina.
I still believe that it will take much more time for Bitcoin to reach the world. Before that, there needs to be a learning curve in which society can make daily use of it and also know how to resolve any issues that arise in different situations.
The main problems that someone can experience are significant values in fees when the network is congested. This also leads to transactions that may not be confirmed or take longer than expected, for example, when using a wallet like the one proposed by El Salvador, called Chivo Wallet.
Taking into account the recent approval of Bitcoin ETFs in January, everything is setting up for the BTC price inclination to move towards a bullish direction.
More and more ETFs are competing with each other. BlackRock and Fidelity today have had the most investment flow in recent times. And as I always say, what will be the next catalyst that triggers the price of Bitcoin above its last record? The world is constantly advancing and a great number of events happen all the time. Perhaps it is time to question ourselves which solutions we want to provide to society and which new opportunities we should create.
- Main image edited in Canva.
- I have consulted information in decrypt.co.
- I have used Hive Translator to translate from Spanish to English.
Posted Using InLeo Alpha
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A big win for Latin America's adoption of cryptocurrencies!
That of renting in the real estate market using Bitcoin sounds very interesting, here in Venezuela at the moment there is nothing like that, but I would like that, also here a couple of days ago they closed a wallet in which you could have cryptos, this wallet was created in the current government, but apparently here in Venezuela did not give many results.
That victory with 85% of votes in favor was crazy, and according to law is the highest % of votes in history in an election.
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