El Salvador has recently announced to be adopting Bitcoin as a legal tender, becoming the first country around the world to take such a step. The president of the country, Nayib Bukele, talked about this a few weeks ago in Miami, saying that this could change the everyday lives of El Salvadorans, making transactions a lot easier.
The country even addressed the World Bank, asking for assistance in the process of adopting Bitcoin as a legal tender, but was denied the help. However, El Salvador is nowhere near giving up, announcing further steps to help popularize cryptocurrencies, specifically Bitcoin, in the country.
A few days back, it was announced that the country was ready to provide $30 worth of Bitcoin to every El Salvadoran who would download the government’s Bitcoin wallet app. The announcement of the country was followed by positive feedback from Bitcoin enthusiasts around the world, speculating that the step will further increase the buying pressure on the whole market.
The increasing popularity of crypto trading
Although it is still unclear how it will impact the crypto trading market, some have already started speculating. Crypto trading is a very popular venture around the world, and following the drop of Bitcoin as well as altcoins over the past week, investors are eager for some good news.
There are millions of people investing in cryptocurrencies around the world. The popularity of the market is heavily influenced by how easy it has become over the past years to access. All traders need to invest in cryptocurrencies is an internet connection and that’s it.
Investors can easily download crypto exchanges on their phones and start buying and storing cryptocurrencies in no time. The crypto popularity is further increased by the simplicity of the market. In fact, as of today, some traders don’t even think about their positions, as everything can be done automatically.
This is possible thanks to crypto trading bots. There are many of them available in the market, such as Bitsgap’s trading bot, for example. The trading bot of Bitsgap is capable of not only analyzing the market but can also open buy and sell orders according to predetermined settings.
Because of this, there are a lot of people who are very closely following developments around the world. Although the decision of El Salvador is very positive news, it is very hard to say how it could possibly influence the price movements in the market, as the prices of the majority of cryptos fell over the past week.
How can it influence crypto trading?
The outcome of El Salvador’s decision is very hard to predict. However, several outlets have already started speculating about the way things could play out. Some estimate that the decision of the country’s government means providing 6 million people with $30 worth of BTC, which could mean 6 million new people added to the crypto ecosystem in just one go.
However, the craze online might be a little too much, as the official announcement shows that only the citizens that will actually download the government-issued cryptocurrency wallet application will be the ones eligible for receiving free Bitcoin.
The news was announced in El Salvador after Friday’s press conference, with the president of the country saying that the wallet app will work anywhere with a cell connection. In fact, the president of the country announced that people won’t even have to have a cell plan to open the app.
He also added that the much-celebrated Bitcoin law of the country, recognizing Bitcoin as an official and legal currency nationwide, will come into full effect on September 7. Up until now, the country has been using the US dollar.
The country passed the Bitcoin law almost half a month ago. The move has received mixed feedback, while being celebrated among crypto enthusiasts, the law faced opposition from minority political parties of the country and the World Bank, which denied help to El Salvador in adopting cryptocurrency.
World Bank’s decision
El Salvador requested from the World Bank the help on the country’s transition to adopting Bitcoin as a legal tender quickly after the law was passed. However, the World Bank decided to refuse the request, mainly because of the environmental impact of Bitcoin.
In addition, they also noted that transparency is another important issue. On the other hand, the World Bank noted that they are ready to provide El Salvador with support and help in other ways, such as currency transparency and regulatory processes.
Although 2021 has proved to be a successful year for the cryptocurrency market, it did see some not-so-positive days as well. The price of Bitcoin hit an all-time high in April, selling at over $64,000 each. Recently, after China’s steps to crack down on crypto mining in the country, the price of Bitcoin fell below $30,000 for the first time since January.
China’s steps to crack down on crypto mining have affected the market a lot. As the biggest crypto miner around the world, China started its crackdown a few weeks ago. It has already closed some of the biggest crypto miners in the country.
The steps taken by China indicate a huge shift in the crypto market. While some see it as negative news, there are others claiming that crypto mining shifting towards western nations might actually be positive news after all.