The current state of cryptocurrencies is ambiguous. Coming from a high of about $65,000, bitcoin (weekly chart of the last 3 years below) has fallen by 50%. Before that it made an advance of 100,000,000% in about 10 years. Really! That’s no mistake. One dollar would have become one million dollars in ten years.
Weighing on its future is a debate about its energy wasting aspects and threatening regulatory burden as they are once again emerging in China and perhaps the US. Also, there have been concerns about its ability to keep the top spot of all cryptos in the future. Will Ethereum overtake it, possibly soon?
On the other hand, El Salvador has just declared bitcoin being a legal tender. All businesses will have to accept bitcoin payments. At least that is the plan of young president Nayib Bukele. How that could be done technically remains to be seen.
Mexico seems to be thinking about following. That would be one step closer to a global change of the financial landscape. Cryptos become mainstream and real money. And bitcoin still has the first of a kind advantage and is thus the natural choice as a legal tender. Disadvantage Ethereum. For now…
The market has not reacted much yet. Perhaps it is still too intimidated by Elon Musk’s comments of dropping bitcoin as a payment option for his Teslas, which was one of the reasons for the latest crypto downturn.
Now a whole society has to accept BTC payments!
While talking about Musk, one of his last tweets didn’t just imply that he broke ties with bitcoin. Additionally his encoded and seemingly overlooked message was:
“Found another one.”
So which one could it possibly be? Not that I think Elon knows something others don’t. It is just that he currently can move cryptos like no one else. See dogecoin.
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