El Salvador continues its daily bitcoin purchases, aiming to keep buying until the cryptocurrency becomes too expensive. The top 10 bitcoin mining rigs of 2024 show significant profit margins due to recent value increases. Blackrock, has submitted a form to the SEC for the initiation of a tokenized investment fund called “BUIDL.” “Rich Dad Poor […]
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Robert Kiyosaki has issued a stark warning about an impending financial disaster, which he believes will devastate baby boomers. A crypto analyst predicts bitcoin could exceed $330,000, defying historical growth patterns through a combination of pattern disruptions and the theory of diminishing returns. Venture capitalist Tim Draper forecasts that bitcoin will dramatically transform El Salvador […]
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El Salvador has been buying one bitcoin a day since 2022, according to President Nayib Bukele, who confirmed that his country’s “1 bitcoin a day program” will continue until the cryptocurrency “becomes unaffordable with fiat currencies.” The bitcoins acquired from El Salvador’s daily purchases are also deposited into the same wallet address used for the […]
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El Salvador received Bitcoin donations after President Nayib Bukele shared the Central American country’s digital wallet address with the public.
In a March 14 post on social media platform X (formerly Twitter), Bukele revealed that the country transferred “a big chunk of our Bitcoin to a cold wallet and stored that cold wallet in a physical vault within our national territory.”
The on-chain address, described by Bukele as the country’s “first piggy bank,” showed that the government holds 5,689 BTC, equivalent to $383 million as of press time, according to BitInfoCharts data.
This disclosure reveals a substantially larger Bitcoin treasury for El Salvador than previously estimated. Public trackers like Nayibtracker and Bitcoin Treasuries had previously placed the nation’s holdings at 2864 BTC, estimated at $193 million.
Nonetheless, the sizable treasury aligns with recent revelations by Bukele, who highlighted multiple revenue streams beyond mere acquisition. These include BTC earnings from citizenship sales, currency exchanges for local businesses, mining activities, and other undisclosed government services.
Moreover, President Bukele has consistently reiterated El Salvador’s commitment to holding onto its Bitcoin reserves, signaling a steadfast dedication to its crypto strategy for the long term.
Following Bukele’s revelation, crypto enthusiasts praised the country’s move and swiftly began sending small amounts of BTC and rare Ordinals to the wallet.
Paolo Ardoino, Tether CEO, said no other country has a bright trajectory like El Salvador while highlighting the country’s security, growth, economy, and talent.
Femi Longe, a crypto stakeholder from Nigeria, said he looks “forward to a future where African countries keep a portion of their national reserves in Bitcoin instead of the US Dollars.”
According to him:
“This would weaken the hold the guardians of the current global economy & monetary system have on our progress as a continent.”
Meanwhile, BitInfoCharts shows that the Central American country’s BTC wallet received more than $1000 worth of BTC donations in 30 transactions.
In addition, Ordiscan reveals that the wallet boasts 67 Ordinal inscriptions, comprising BRC-20 tokens, textual inscriptions, images, and others.
The post El Salvador receives Bitcoin donation after revealing on-chain address appeared first on CryptoSlate.
Tim Draper, a venture capitalist famous for his bitcoin price predictions, has praised El Salvador’s vision of embracing this new technology and talked about the benefits of this decision for its people. According to Draper, bitcoin will make El Salvador one of the richest countries in the world in the next 30 or 40 years. […]
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Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: President Bukele states El Salvador will not sell its bitcoin, Bitcoin ETFs land in Brazil and Peru, and Argentine President Javier Milei aims to criminalize central bank money issuance. El Salvador Won’t Sell […]
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In a recent development, Bitcoin proponent and crypto advisor to El Salvador’s President Max Keiser has made a future prediction for the Bitcoin price, joining the ranks of analysts who have made bold assertions about the flagship cryptocurrency’s trajectory.
In a tweet shared on his X (formerly Twitter) platform, Keiser stated that the Bitcoin price will experience an explosive rise to $220,000 in the short term. However, he didn’t specify how soon the crypto token would see such a rally. He made this assertion in response to a CNBC article about the current decline in the financial market amid economic and inflation concerns.
In a subsequent tweet, Keiser once again reiterated that Bitcoin would rise to $220,000 as he claims that “Central banks will print a wall of money visible from outer space.” His belief seems to stem from the fact that many will be looking to use Bitcoin as a hedge against rising inflation.
He even alluded to the fact that the US dollar was losing its purchasing power “at a very rapid pace.” He gave an instance of how paying $100 for hamburgers years ago looked like a joke, but he had just spent “$84 for a very ordinary hamburger.”
For the longest time, Keiser has been bullish on the foremost cryptocurrency. In 2011, he called Bitcoin the “currency of the resistance” and the “biggest story of the decade.” Additionally, he always touted a financial collapse as what would spark a massive rally in the Bitcoin price. Then, he stated that Bitcoin’s adoption and price will increase as banks collapse.
Arthur Hayes, the co-founder of BitMEX, also shares similar sentiments with Keiser. He recently stated that the government would likely resort to money printing to save the bond market, which could lead to a meteoric rise in Bitcoin’s price and other cryptocurrencies.
BTC bulls struggle to maintain control | Source: BTCUSD on Tradingview.com
There seem to be divergent views on how rising inflation could affect Bitcoin and the crypto market by extension. While people like Keiser and Hayes see rising inflation as bullish for Bitcoin, others like Crypto analyst Nicholas Merten believe that inflation could spell more trouble for Bitcoin’s price.
According to Merten, the Federal Reserve needs to keep hiking interest rates to bring down the inflation rate as there is excess money in the system due to the “excess printing of money.” Meanwhile, Bloomberg analyst Mike McGlone warned that the rising interest rates could cause a further decline in the Bitcoin price.
There also seems to be a correlation between the stock and crypto markets. As such, it doesn’t seem like Bitcoin and the crypto market exist in isolation, as any financial crisis could significantly impact it.
Featured image from The Face, chart from Tradingview.com
El Salvador officially launched its first local Bitcoin (BTC) mining pool as the Volcano Energy project begins mining blocks through Lava Pool in partnership with Luxor Technology.
The Bitcoin-friendly country’s $1 billion renewable energy project made headlines earlier in 2023, with stablecoin issuer Tether among companies investing in the project that plans to generate electricity from renewable sources in El Salvador to power future Bitcoin mining operations in the country.
Volcano Energy is tapping into Luxor’s experience in providing Bitcoin mining software and services. The project will also use Luxor’s Hashrate Forward Marketplace to mitigate market volatility through automated risk management strategies used by other major Bitcoin mining operators.
Bitcoin has the potential to pay off its climate debt much sooner than solar energy, and, thanks to its ability to mitigate methane, it can address more urgent challenges. #Bitcoin #ClimateAction
— Volcano Energy (@Volcano_Energy) October 3, 2023
A statement from Volcano Energy chief strategy officer Gerson Martinez highlighted ongoing efforts by El Salvador to secure first-mover advantage as a Bitcoin-adopting nationstate:
“Our vision is to create a vertically integrated energy and bitcoin mining company whose value is accretive to investors and to all Salvadoran citizens.”
Luxor’s chief operating officer Ethan Vera said the establishment of Volcano Energy and the start of local Bitcoin mining will contribute to Bitcoin’s ethos of geographical decentralization.
The announcement also mentions the potential for countries with abundant renewable energy sources to use Bitcoin mining to improve the economics of new energy projects. Mining operations can provide a “flexible buyer of first and last resort” for energy producers and act as an alternative revenue stream.
As a public-private partnership, Volcano Energy is set to contribute 23% of its net income from mining operations to the El Salvador government. Mining profits are also set to be reinvested into energy transmission and infrastructure to stimulate economic and technological growth in the Central American nation.
Related: Bitcoin-friendly El Salvador sees bond returns soar to 70% in 2023
The first phase of the Volcano Energy project involves the construction of a 241-megawatt (MW) renewable energy park in Metapán that will comprise 169 MWs of photovoltaic solar energy and 72 MWs of wind power. The long-term goal of the project is to tap into abundant geothermal energy in the country.
In a previous exclusive interview with Cointelegraph at the Money20/20 conference in Amsterdam, Tether’s chief technology officer Paolo Ardoino said that the company’s investment was aimed at diversifying its interests into energy production while making use of renewable energy to mine Bitcoin.
Cointelegraph journalist Joe Hall traveled to El Salvador in 2023, documenting the adoption of Bitcoin as a means of payment in the two years since the country became the first in the world to officially make BTC legal tender.
Magazine: Blockchain detectives: Mt. Gox collapse saw birth of Chainalysis
With its services now fully authorized in El Salvador, Binance has achieved its 18th regulatory approval, solidifying its position as the exchange with the most licenses and registrations worldwide.
Binance has achieved the status of being a fully licensed crypto exchange in El Salvador, thereby adding to the number of countries where it is operating under proper regulatory oversight.
The Central Reserve Bank has granted the exchange the Bitcoin Services Provider (BSP) license, along with a non-provisional Digital Assets Services Provider (DASP) License from the National Commission of Digital Assets.
Commenting on the achievement of getting a license in El Salvador, Min Lin, Head of Latin America at Binance, said:
“We are honored to have been granted this license, as Binance continues to collaborate with regulatory agencies worldwide to uphold global standards for the crypto and blockchain industry. This announcement follows months of dedicated effort from our team to provide comprehensive information and complete the necessary due diligence required by the agencies. This showcases our unwavering commitment to the Salvadoran market and our users.”
Binance is diligently pursuing regulatory licenses and permissions across various regions around the world. This approach enables the company to effectively cater to the unique needs of its customers in different parts of the globe. With its services now authorized in El Salvador, the exchange has achieved its 18th regulatory approval, solidifying its position as the exchange with the most licenses and registrations worldwide.
Daniel Acosta, Binance’s General Manager for Colombia, Central America, and the Caribbean, acknowledged the significance of the license in enhancing Binance’s ability to offer tailored services to clients. He stated:
“These licenses empower Binance to expand its range of products and services, including options customized to meet the requirements of our customers in El Salvador. Furthermore, this presents an excellent opportunity to work closely with government authorities to promote the adoption of crypto assets within the country, foster financial inclusion and innovation, and ensure customer protection.”
El Salvador has consistently displayed a positive outlook toward the crypto industry. In 2021, it made history by becoming the first country to accept Bitcoin as legal tender. Additionally, regulations were established concerning the issuance of other cryptocurrencies by both state and private entities.
The country also initiated the practice of acquiring 1 BTC per day starting in September 2021. As of April, reports indicated that El Salvador held more than 2,546 BTC. While the daily Bitcoin purchase news surprised many and raised questions about the project’s viability for the country, it did not deter the government’s faith in Bitcoin.
In April, Bitfinex also announced its status as a fully regulated digital asset exchange in El Salvador, having obtained the DASP license.
These and many more are pointers to the country’s belief in cryptocurrency projects and services.
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Temitope is a writer with more than four years of experience writing across various niches. He has a special interest in the fintech and blockchain spaces and enjoy writing articles in those areas. He holds bachelor’s and master’s degrees in linguistics. When not writing, he trades forex and plays video games.
