This Week In Bitcoin is a new segment that covers the events of the week that occurred in the Bitcoin industry, covering all the important news and analysis.
This was the week of El Salvador. Since President Nayib Bukele’s announcement in Miami in Bitcoin 2021 that El Salvador would adopt Bitcoin as legal tender, the internet has been on fire. Since then, the country’s parliament has made it official, voting with a supermajority in favor of the bill. There has also been talk of establishing mining operations in the country and allowing investors with 3 BTC or more to take up residence in El Salvador, prompting other Central American countries to show interest in following suit. I have long said that the first country to officially adopt bitcoin will be a pioneer and this week El Salvador did just that.
In Other News: Elon Musk and Michael Saylor’s “Bitcoin Mining Council” Released Mission Statement, Continued China’s Crackdown on Cryptocurrencies, Former US President Donald Trump Battered bitcoin, several mining and wallet companies raised new funds, and US inflation reach your highest rate since the financial crisis of 2008.
Yes, a lot of bullish news this week would appear to be related to El Salvador, and most Bitcoiners have heard the name of the country enough times in the last week to last a lifetime, but the fun has only just begun. The nation:
- He announced the adoption of Bitcoin in the country to pass the bill.
- Solutions offered to mining and investment.
- And began a nationwide deployment.
All in less than a week, while something similar would take years in other countries involved in bureaucracy. Countries like Panama, Y Argentina They have expressed interest in following in his footsteps.
On top of that, Taproot has cleared its latest hurdle over the weekend as it crashed, signaling a new chapter for Bitcoin. This “transition” was relatively smooth compared to the block size disputes of 2017, if you pay attention back then. Then there are Michael Saylor and MicroStrategy raising more funds to buy bitcoins, and with interest in the bonds they are issuing skyrocketing, there were rumors that the Fed would buy some too.
Overall, it was a solidly bullish week in Bitcoin, and the news and major developments in the market have yet to be reflected in the price of Bitcoin.
But not all news is good news. The “Bitcoin Mining Council” released its mission statement possibly paving the way for centralization in mining. Not to mention Elon Musk is involved, who has proven time and again that he may not care about Bitcoin and the best interests of the community.
Furthermore, India and China continued their attack on Bitcoin and the crypto market in general. Although no definitive action has been taken, it is something to watch out for. The International Monetary Fund (IMF) has voiced its disapproval of El Salvador’s adoption of bitcoin and is likely looking for ways to attack bitcoin and anyone associated with it, especially to deter more countries from following in El Salvador’s footsteps.
Activating the taproot is a certainty at this point after it crashed over the weekend. This soft fork will expand the flexibility of the Bitcoin smart contract, while offering more privacy in doing so, as covered in a lengthy article in 2019. Taproot will go live in November and greatly enhance the current Bitcoin ecosystem.
El Salvador’s bitcoin adoption is a done deal. Investors like Justin Sun have made it clear that they plan to settle in the Central American country as it opens its borders and economy to Bitcoiners. The country’s plans to allow 100% clean bitcoin mining through its geothermal volcanic power plants will calm enemies who have (falsely) claimed that bitcoin mining is a major contributor to climate change and will pave the way for it to more miners adopt green mining initiatives. .
With US inflation reaching highs not seen since 2008, developing nations that have become dependent on the US dollar as a reserve currency and hedge against inflation in their own countries are likely to favor Bitcoin for months and years to come. This could turn out to be bearish as everyone from the US government to the IMF, the World Bank, and others can lobby against Bitcoin and use their power and influence to combat Bitcoin adoption.
However, what is more newsworthy is the fact that El Salvador managed to announce and pass a bill with a supermajority vote in less than a week, showing its commitment to execute its plans and not just be “all talking.” Other nations are likely to follow, but El Salvador will be instrumental in establishing bitcoin as a “global standard” and showing the benefit of adopting it to other emerging and struggling economies, with African nations being the most likely prospects to follow suit below. .
Overall, the last week has been truly revolutionary for Bitcoin. The price may not reflect that yet, and maybe it won’t for a while, but Bitcoin is certainly becoming a household name and we are still in the early days. As many would agree, the price of bitcoin is seriously undervalued right now.
This is a guest post by Dion Guillaume. The opinions expressed are entirely my own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.