It’s been an exciting week in Cryptoworld and one that reinforced the idea that it’s never boring when you’re watching a new economic model taking shape in real time.
The market correction caught many folks off guard as the price has been moving upwards steadily since the May correction, and was deeper than many expected. Bitcoin dropped from a high of $52,000 (R780,000) on Monday to a low of $45,334 (R 680,000) before stabilising around that mark. That action was matched by Ethereum who also dropped around 7% to $3,400 (R50,000) and the rest of the market followed suit (interestingly Solana weathered the storm and came out relatively unscathed – having been up 20% from the previous 12 hours, it returned to where is was and has since regained that 20% to its price at writing of $200 (R3,500) per SOL)
For those wise souls who see a drop in price as another chance to accumulate future wealth, the dip was a welcome buying opportunity.
Just to prove that there is never a dull day in Crypto, the timing of the correction was striking.
It happened on the same day that El Salavador became the first country to accept Bitcoin as legal tender after a long and well-publicised run up to the launch day.
The government had been installing ATMs that can handle Bitcoin and making sure that all businesses in the country would accept payment in Bitcoin.
The drop in price didn’t seem to worry the government of El Salvador at all. They announced that they had purchased an additional 150 Bitcoin worth around $7 million (R100 million). This is to add to the 400 bitcoins that the government purchased ahead of the launch earlier this year.
Reuters reports on President Bukele’s plan; ‘Promising $30 of bitcoin for each user, Bukele has pushed for its adoption, saying it will help Salvadorans save $400 million a year on commissions for remittances, while giving access to financial services to people with no bank account.
“We must break the paradigms of the past,” Bukele tweeted. “El Salvador has the right to advance towards the first world.” The vision of this President is remarkable – seeing the future and the benefit that Crypto can bring to the people is a rare unicorn these day, where most governments are dead set on holding all the keys to the vault, and having the power to make the financial decisions for the country they administer as they see fit, instead of letting the free market flourish.
There is tremendous interest to see what benefits it brings to a country where the current financial system is not working for millions of people living in poverty with no real clear financial solution to their problems in sight. Give this president a Bells.
It’s a welcome break from the past and the whole world is waiting to see what effect it has on the price and the stability of Bitcoin in the coming months. We at Cape Crypto look towards it only with positive sentiments and excitement for their future and the butterfly effect it is sure to have on the rest of the world, we can only hope those ripples extend to our beloved country.
Image: The flag of El Salvador © Design_Bank/Shutterstock.com