Bitcoin is paving the way for El Salvador to be a real economic powerhouse
The week in review
with Jason Deane
Greetings from El Salvador! Well, nearly. I’m actually back in the UK now after a lightning (pun intended) visit to this amazing country as a guest of the El Salvadoran government with the Bitcoin Racing Team last week.
I’ll openly admit I enjoyed the red carpet treatment as we explored ways to work together, visited a volcano-powered Bitcoin mining plant and got to experience, first hand, the culture of a country that until recently, had the dubious mantle of being the most dangerous nation in Latin America.
But not anymore.
On our last day, the President Nayib Bukele tweeted a confirmation that in September 2022, the country experienced exactly zero homicides for the first time in its history. For context, the UK averages around 50 a month, the US around 2,000 (2021 data). This is all to do with Bukele’s relentless crack down on the ultra-violent gangs that had run the country for the last two decades.
Their reign is well and truly over and, as a result, the optimism that oozes from the very souls of these people is utterly inspiring and extremely infectious. For the first time in years they are free to build businesses without being extorted or even just to walk the streets safely. To cap it all, they are building an economy entirely independent of anyone else by building on Bitcoin.
Even as a committed HODLer, I still contributed to the circular economy by paying for as much as I could with Bitcoin over the Lightning Network, which, coincidentally, reached a new capacity milestone of 5000 Bitcoin this week. I paid for sushi, taxis, McDonald’s coffees and even protein shakes on El Zonte beach, but it’s true that acceptance outside the capital is low and some people still view it with scepticism. That said, have no doubt that El Salvador is on the right track. It really is.
As for the rest of the world, not so much. In the old days, we smug westerners in our “safe” and “developed” economies might have looked down on these little guys and laughed at their puny efforts, but it feels like now the tables are turning. As the rest of the world crumbles, El Salvador is quietly positioning itself to be one of the next powerhouses of the world, thanks, in part, to Bitcoin.
Here in the UK, as Liz Truss takes a gigantic chance with our finances, the fallout is likely to be spectacular. Perhaps there was little choice as this is a genuine no-win scenario, but the loss of the value of the pound on international markets and the extreme increases in interest rates lay bare the weakness in our current – and flawed – fiat system. Make no mistake, very rough times are ahead.
Meanwhile, what Ukraine is achieving against the Russian occupiers of its land is nothing less than spectacular. Russia is now the biggest supplier of arms to Ukraine and Putin’s forces are in total disarray. It’s very unlikely his recent mobilisation is going to change anything soon in terms of the front, but it IS quite likely that his actions will do what global sanctions have only partially done so far, completely finishing off the Russian economy for the foreseeable future. Madness.
However, Putin did achieve one small victory in this, his 70th birthday week, by getting an agreement with Mohammed Bin Salman of Saudi Arabia to cut oil production by two million barrels a day, thereby driving up oil prices further and helping him fund his war. This is an entirely irresponsible thing to do from a moral standpoint, but, as ever, money talks. Sometimes I despair for the human race, I really do.
Thank goodness for Bitcoin. Thank goodness for countries like El Salvador who may, genuinely, end up showing us the way forward from here. Who would have thought that possible, even just a few short years ago?
Have a great weekend!
Want to learn more about what’s going on in our global financial system and how Bitcoin fits in to it? Come to my next free webinar on October 19th at 6pm to find out, ask any questions, and grab some free Bitcoin*. Click here to register.
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Yesterday’s Crypto AM Daily in association with Luno
In the markets
The Bitcoin economy
*Definitions and insights can be found at https://bytetree.com/research
Total crypto market cap
The total capitalisation of the entire cryptocurrency market at time of writing is currently $958.663 billion.
What Bitcoin did yesterday
We closed yesterday, 6 October 2022, at a price of $19,955.44. The daily high yesterday was $20,408.39 and the daily low was $19,900.09.
Bitcoin market capitalisation
Bitcoin’s market capitalisation at time of writing is $383.27 billion. To put it into context, the market cap of gold is $11.35 trillion and Tesla is $740.82 billion.
Bitcoin volume
The total spot trading volume reported by all exchanges over the last 24 hours was $29.291 billion. High volumes can indicate that a significant price movement has stronger support and is more likely to be sustained.
Volatility
The price volatility of Bitcoin over the last 30 days is 47.15%.
Fear and Greed Index
Market sentiment today is 23, in Extreme Fear.
Bitcoin’s market dominance
Bitcoin’s market dominance today is 41.66. Its lowest ever recorded dominance was 37.09 on January 1 2018.
Relative Strength Index (RSI)
The daily RSI is currently 53.61. Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price – an RSI reading of 30 or below indicates an oversold or undervalued condition.
Convince your Nan: Soundbite of the day
“The future of money may look different. We’re researching and preparing our network for it: CBDCs, digital dollars, crypto services…”
Michael Miebach, Chief Executive Officer at Mastercard
What they said yesterday
There will never be more than 21 million Bitcoins…
Step back…
New kids on the block…
Barry Silbert’s Digital Currency Group, was created to introduce Bitcoin to a mainstream audience in a meaningful way and now has members right across the UK.
We share tips, stories and ideas on how to encourage others to try Bitcoin for the first time. And, thanks to support from Luno, each Pioneer gets £500 of Bitcoin a month to share with beginners, helping them get started.
So, if you’re passionate about Bitcoin, why not join today? Click here to find out more!
All feedback on Crypto AM Daily in association with Luno is welcome via email to [email protected] 🙏🏻
Crypto AM: Editor’s picks
Three-in-four wealth managers are gearing up for more cryptocurrency exposure
Crypto.com granted FCA licence to operate in UK
Q&A with Duncan Coutts, Principal Technical Architect at IO Global
Jamie Bartlett – on the trail of the missing ‘Cryptoqueen’
MPs are falling silent over potential of cryptocurrency
Erica’s ‘Crypto Wars’ handed honours in Business Book Awards
‘Let people invest’: Matt Hancock makes case for liberal crypto rules
Explained: Why the Treasury is so sold on stablecoins
Fears crypto is used to avoid sanctions ‘misplaced,’ says Matt Hancock
The cryptocurrency fundraisers behind Ukraine’s military effort
Crypto crazy couple name baby after favourite digital asset
Crypto AM: Features
Crypto AM: Founders Series
Crypto AM: Industry Voices
Crypto AM: Contributors
Crypto AM: In Conversation with James Bowater
Crypto AM: Tomorrow’s Money with Gavin S Brown
Crypto AM: Mixing in the Metaverse with Dr Chris Kacher
Crypto AM: Visions of the Future, Past & Present with Alex Lightman
Crypto AM: Tiptoe through the Crypto with Monty Munford
Crypto AM: Taking a Byte out of Digital Assets with Jonny Fry
Crypto on the catwalk
Crypto AM: Events
For those of you who missed the Crypto AM DeFi & Digital Inclusion online summit 2021 – you can now watch the event in two parts via YouTube
Part One
https://www.youtube.com/watch?v=dvqNMNZTIDE
Part Two
https://www.youtube.com/watch?v=WXhX_-Tr5j0
Cautionary Notes
It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. Morning Wire, Crypto AM and Luno always advise you to obtain your own independent financial advice before investing or trading in cryptocurrency.
All information is correct as of 08:00 BST