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Bitcoin and other Crypto...


Spy Bee
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This Wednesday, the congress of El Salvador, country with a population of 6.5 million people, approved 2 the Bitcoin Law 2 that ‘regulates Bitcoin as unrestricted legal tender’. More specifically, ‘Prices may be expressed in bitcoin’, ‘tax contributions can be paid in bitcoin’, and ‘every economic agent must accept bitcoin as payment’. The decree is expected to take place less than 90 days from now. The country reportedly partnered with a Chicago-based project called Strike 1. For the past year, the concept of a Bitcoin economy has been tested by Strike at El Zonte, an El Salvadorian village where a few thousand locals can use an application called Bitcoin Beach 4 for their daily expenses.

It would be difficult to imagine that a highly volatile cryptocurrency can be used in our everyday life. But the benefits of a fully decentralised currency far outweigh this drawback. The Bitcoin Beach project is a showcase for adoption, for banking the unbanked, favouring capital inflow from the estimated 1.3% of the world’s population that owns Bitcoin, guaranteeing that the Bitcoins sent for aid actually land into the wallets of those in need, to the last penny. 600 bitcoin users would purchase anything from ‘bags of tortillas to haircuts’. But why not use stablecoins instead?

Stablecoins are directly or indirectly centralised, whether they are backed by traditional assets or simply pegged to a traditional currency. Consensus is always more easily achieved through decentralisation. Confidence in a monetary system is more easily gained if there is no single point of failure, and in the case of El Salvador, the potential single point of failure could be the Fed, or the IMF.

In response 2 to El Salvador’s Bitcoin adoption, the IMF’s spokesman Gerry Rice mentioned that the ‘adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis. [The IMF is] following developments closely and will continue [its] consultations with the authorities’.

 

https://community.wirexapp.com/t/crypto-corner-summary-of-the-week-07-06-2021/23009

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The media is reporting ‘the world’s first crypto bank run’ with regards to IRON FINANCE.

Let’s be clear - it wasn’t.

 

https://www.coindesk.com/paying-iron-price-fractional-reserve-banking?utm_source=Sailthru&utm_medium=email&utm_campaign=NODE JUNE 18 2021&utm_content=B&utm_term=The Node

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14 minutes ago, Rico1304 said:

90 days for all businesses to accept Bitcoin? Did I read that right?  That’s impossible. 

They have to accept it but not keep it. Anyone that accepts bitcoin can then get it changed into dollars by the gov I think if they want rid of it.

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4 hours ago, Rico1304 said:

90 days for all businesses to accept Bitcoin? Did I read that right?  That’s impossible. 

Wirex is purpose ready for El Salvador. The conversion is ‘behind the scenes’ and seemless.

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11 hours ago, Red Phoenix said:

They have to accept it but not keep it. Anyone that accepts bitcoin can then get it changed into dollars by the gov I think if they want rid of it.

 

What happens to the government if they change all the bitcoin into dollars and then Elon Musk tweets something and they are left holding the bag when it plummets in value?

 

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https://www.theguardian.com/lifeandstyle/2021/jun/19/life-savings-in-crypto-generation-of-amateurs-hooked-on-high-risk-trading

 

This is why, after my first foray a year back, I stopped 'investing' in crypto. I've got an addictive personality and no way is it able to cope with something that's gambled 24/7. I'd worry about waking up and realising I've lost my house with Elon tweeting something and everyone selling up 

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4 hours ago, Chairman Meow said:

What happens to the government if they change all the bitcoin into dollars and then Elon Musk tweets something and they are left holding the bag when it plummets in value?

 

That's obviously the main risk they're taking by accepting bitcoin and no idea really. I'd like to think they're converting some of the bitcoin into other stuff though like precious metals, stablecoins, other currencies, etc, to protect themselves a bit if there's a proper crash.

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Worth noting that Ethereum can go back to 3 digits and still be a up a decent amount year to date. Plenty of room to fall.

I think all alts are absolutely cooked for the foreseeable, would only buy for a quick bounce if at all at the moment.

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