Cryptocurrency price

Bitcoin: El Salvador’s experience does not justify the rise in the prices of cross-cryptocurrencies

There is a clear incentive for early cryptocurrency users to promote mainstream acceptance. The more buyers you have, the higher the price. Therefore, crypto fans have come up with an online plan to strengthen Bitcoin as El Salvador. Legalize tokens For the payment. It was logical. The ripple increases in other cryptocurrency prices were not.

An 8% increase in Bitcoin over the past seven days means it is now worth around $ 51,000. But according to data from CoinGecko, which tracks more than 9,000 coins, it’s not the biggest driver. Ethereum, the world’s second largest cryptocurrency, jumped 16% last week. Solana’s SOL tokens have increased by 69%.

There is no reasonable reason for these gatherings. El Salvador should not make other cryptocurrencies legal tender. Instead, the jumps reflect a mix of low interest rates, blind beliefs, and better access soup for investors.

Trading apps make it easy for retail investors to buy crypto. Coinbase’s initial public offering in April raised awareness and resulted in increased downloads.

The bogus world of non-fungible tokens (NFTs) has also boosted crypto. These prove ownership of digital assets like art, music, and even virtual pet rock. Many use the Ethereum network. Solana, supported by Andreessen Horowitz, has its own NFT market, Solanat.

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However, this has nothing to do with the adoption of Bitcoin, which has caught the attention of El Salvador. This distracts national attention from the failing economy of this poor Central American country, the first country to adopt Bitcoin as a fiat currency. It also provides Bitcoin fans with a more hilarious flow of information than the collapse in the value of the cryptocurrency this spring.

The rise in prices means that the total market value of cryptocurrencies has reached around $ 2.4 trillion. It is fast approaching the record of $ 2.570 billion set in May. Bitcoin’s market share is declining. It is now around 40%, down from 57% a year ago. Yet Bitcoin remains a powerful pioneer.

This can be a problem if Bitcoin’s latest rally is based on success in El Salvador. President Nayib Bukele said the country bought 400 Bitcoins. This is only 0.002% of the unpaid value. Local opposition is widespread, suggesting that coverage will be low. Wet firecrackers are more likely than the economic turmoil predicted by some critics.

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Bitcoin: El Salvador’s experience does not justify the rise in the prices of cross-cryptocurrencies Source link Bitcoin: El Salvador’s experience does not justify the rise in the prices of cross-cryptocurrencies


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