Community Trust ScoreVerified
- Bitcoin the Hot and Happening P2P Currency
- El Salvador President Confident about Volcano Bonds
- Building the Bitcoin City
- IMF Displeasure
- Miners looking for safe geopolitical solution with Cheap Power
Bitcoin the hot and happening p2p currency is working beyond banks, credit cards, geographical borders, payment businesses and governments. Bitcoin continues to be PoW and therefore the process of creating the total number of BTC is extremely energy intensive.
Meanwhile, the President of El Salvador is betting big on Bitcoin through his country’s treasury. Plans to launch the Bitcoin-Backed bonds are underway. The bonds are focused on raising $1 billion for the country. The launch was expected to happen in Mid-March; however, the Russia-Ukraine war and the volatility in the cryptocurrency market let the launch being post-poned.
Bukele continues to spread his idea that BTC helps the millions without traditional accounts- the unbanked. Those who will benefit the most according to him are those who are having to pay high fees on money transfers.
In 2021, El Salvador adopted BTC as the legal tender alongside USD. The launch of the Bitcoin bond is expected to be another move. Despite, the fact remains that the cryptocurrency is an unregulated asset market.
The International Monetary fund and the United States are not appreciative of Bukele’s moves. And, El Salvador continues to have its share of economic recovery issues. The IMF refused loans to El Salvador citing risks for consumers and markets due to BTC. Despite the launch of Bitcoin Bonds being postponed, Bukele is determined about the Bitcoin City. He is determined to use half of the proceeds from the Bitcoin Bonds to build the Bitcoin City.
Also, he has been hoping to make use of the geo-thermal power from the volcano to help with Bitcoin Mining.
The Bond is popularly known as the Volcano bond and analysts opine that this can be a gamble as it is the first of its kind.
If they are able to issue the bond successfully, El Salvador will be able to attract huge inflow of foreign capital, thereby being able to do without funds from the IMF or US which comes with strings attached.
However, if the bond issuance become a failure, lot of doors will be shut. Therefore, the Volcano Bond issue is going to define a lot of things for El Salvador and its 6.3 Million Citizens.
Bitcoin as Alternative Finance needs Alternative Power Source that is cheap. Bitcoin forever needs computer processing power. Miners from across the world are packing their businesses and are moving to other parts of the world. Miners do not want to suffer the burn when bans like that of China happen. No one is interested in facing an abrupt country wide ban. Miners are looking for a geopolitical situation which will be favourable with power that is plentiful and cheap. If the Volcano power can support the power requirement for Bitcoin – it is going to be all positive.
