Crypto Crashes After El Salvador Adopts Bitcoin
Today we are going to be calling an audible on a review that was going to launch to address, of course, the dip in the crypto market. That, coincidentally, aligns with the official date of el salvador using bitcoin as an official tender within the country. Now this also brought up an interesting talking head topic that i wanted to address after listening to a podcast from lex friedman that basically brought up the idea of is cryptocurrency selling false hope lets get into it right after a word from our sponsor todays sponsor is Crypto.Com crypto.com is my go to centralized exchange for liquidating my crypto assets with their crypto.com visa debit card. I can load up my mined ethereum to pay for power and other operating costs quickly, while earning up to eight percent cash back. In addition to the visa debit card, there are additional fiat options, including wire transfers, to easily receive your profits. Crypto.Com also offers additional services, including trading and even staking to earn additional revenue on your investments, join 10 million, plus users buying and selling 100 cryptocurrencies at true cost. By using my affiliate link in the description for a 25 funding bonus or enter referral code, soat at sign up for the same bonus, remember cryptocurrency investment comes with significant risks. So do your own research welcome back, so lets just go ahead and get you guys caught up on the news. In general, el salvador buys 400 bitcoin a head of making it legal currency.
This was yesterday on monday. The bullet points here is by the numbers: 200. Bitcoins had a market value of about 10 million as of monday night. Of course, thats not true anymore. El salvadors legislature voted in june to make bitcoin legal tender. The digital currency will be used alongside the us dollar, the nations official currency of note – and this is important – guys, listen to this little excerpt. The world bank in june rejected the government of el salvadors request to help the government implement bitcoin, citing environmental and transparency concerns, see where thats headed cant, you alrighty, so how it works. The government will provide a bitcoin wallet called chivo or shivo im, not sure on the pronunciation. Let me know in the comment section below which will be pre loaded with thirty dollars in digital currency, for users whove registered with a salvadoran national id number. So this is a way to basically track. Bitcoin weve talked about this previously theres, no real privacy within bitcoin thats. Why a lot of the og cypherpunks and crypto enthusiasts typically will lean towards something like monero, at least if theyre principled right were talking about. Of course, probably a heavy, a heavy heavy, libertarian influence on most of the people that call out the the privacy issues but, of course, for legal tender in a country, its needed to track payments etc. So, just to be clear, this is kyc through the government. Basically, in el salvador, its good still for adoption, at least we thought it would be right, but now the news starts coming out here and we see that essentially the crypto markets are crashing.
So we have at this point basically seen essentially almost a 10 drop down to 46 000 in bitcoin. I believe its even below that now lets go ahead and check it out, nope, so still 46 000 down from 51 000 pretty much overnight now. Why would this happen? Obviously, the global banks and financial institutions warned el salvador against, of course, accepting bitcoin as tender within the country, and maybe they just want to prove a point: throw on the tinfoil hat big whales, lots of outside fiat currency that could influence the price of bitcoin either By you know, selling a bunch of it etc, and you know they werent happy with what el salvador is doing so after the first big purchase from the government, they go ahead and dump the price. So what does that come out to now by the way? The 200 bitcoins that was worth all that money. Well, we can do 200 times 46, 747, and now that is worth nine million nine point: three million dollars. If we compare that to 200 times 51 000, that was 10 million, 200 000. So for a country like el salvador, thats – probably a pretty big deal, albeit its not that terrible youre still, you know within functioning price. I dont know what their economy is like, but you know the 10 million doesnt seem like a lot when were spending trillions of dollars here in the us on unnecessary things, but the entire point being is that essentially, why would el salvador be moving into bitcoin and Thats to basically protect their economy, the idea is to shift the economic wealth through the use of bitcoin, so that brought me to an interesting or brings us to the interesting idea of is bitcoin basically or cryptocurrency in general selling.
False hopes to basically the underprivileged or the people that do not have a lot of you know capital right people like well, i feel like im doing good thanks to cryptocurrency, but people like myself just working day, jobs. People like you watching this video and i want to give full credit here, so i pulled out my phone, but i was listening to a podcast by jared by lex friedman and he had jaren laner on him. He asked jaren laner what he thought of cryptocurrency and he brought up this analogy of gambling, not saying that cryptocurrency is gambling. But this is the idea there is a very small chance of you winning at gambling right and but everybody still goes to vegas everybody gambles its a big large market, even though in our psyche were pretty much knowledgeable of the fact that we probably wont win. We do it and then whats the excuse we use well. At least i got entertainment out of it now this is going to get a little dark, but when youre purchasing cryptocurrency, what are you planning on or what are you hoping for right? Well, youre youre, hoping that the price goes way up and that it gets you out of some sort of poor economic situation so that you can experience more freedom within life and do things without being tied to maybe a full time day, job or whatever. It may be, and the idea is this – is that in the event, because its highly unlikely that you will be one of the people that gets in at the bear market and find success just from buying cryptocurrency, because usually people will purchase a bulk of the people.
Will purchase when its already going up when its too late to make those huge gains right? But what do you get out of it? You get hope what are all the kids getting out of, buying dogecoin and sheba token, etc. They get some sort of hope that they will basically be able to pull themselves out of some sort of economic disparity. And yes, this is a very dark topic, but i wanted to bring it up because it does ring true and it does basically sit behind and support or help support the principles of this channel when we talk about cryptocurrency. This is why i will always encourage you to value revenue over the increase of price in any given coin right or crypto, because at this point, what you should understand is that the market is volatile, while, yes, during a bull run, if you just purchase the cryptocurrency And hold it all the way through it in theory, will make more than mining, but its dependent on a few things. Its dependent on you dont need to pull that out to pay bills its dependent on, of course, the markets going up and its dependent on you getting out in time, and the thing is, is you will never know the exact timing, so it is, to a certain Extent a gamble: if youre just purchasing and holding what does mining do? What does liquidity pools do? What does staking? Do it eliminates that a little bit of that gambling aspect, because youre generating revenue so im just going to say that that is kind of the principle of the channel to try to drive that home for the people that are new to cryptocurrency? Is you want to focus on revenue generating assets over anything else and there are revenue generating assets within crypto? The great thing about crypto, at least before the gpu shortage and the chip shortages, was that you could do it at a lower level.
You could buy a graphics card for a few hundred dollars and have a revenue generating asset theres, not really a lot of revenue generating assets that you can get into for under a thousand dollars and thats. What makes cryptocurrency special or specifically mining, especially because staking we start talking about needing a pretty hefty uh, pretty hefty investment, so thats the idea i heard it, and i know a lot of people will probably it will probably upset a lot of people that idea of Cryptocurrency just selling hope what do you get out of cryptocurrency if you lose on cryptocurrency? Well, you got to experience, hope for the first time, thats the idea its a little dark. I understand, but hopefully it helps. You understand my perspective on how i approach investments when within cryptocurrency – and hopefully you know grounds you a little bit so that you can make some smarter decisions as far as the dip in crypto today and the relation to el salvador. Unfortunately, it does seem to be tied because you cant let the little guy get away with using something that you dont have full control over tin, foil hat. Of course, thanks for watching ill see you next tuesday, if you enjoyed this video, be sure to subscribe, to see more also, you can check out this playlist for more content.