55 days from now will be the hundred-year anniversary of when the American industrialist and business magnate Henry Ford talked about a unique energy currency that could stop wars. The well known founder of the Ford Motor Company suggested that a currency could be backed by energy in kilowatt-hours (kWh) in a similar fashion to the way energy is leveraged to mine bitcoin.

Close to 100 years ago on December 4, 1921, Henry Ford discussed an idea he conceived in the New York Tribune. The title of the published article was called Ford Would Replace Gold With Energy Currency and Stop Wars.

Ford is well known for developing the assembly line technique and creating one of the first mass-produced American-built automobiles. Fords energy currency concept describes a digital currency much like Satoshi Nakamotos Bitcoin and one that is also scarce.

Not only would Fords energy currency be backed by energy measured in kilowatt-hours (kWh) he also discussed with the Tribune that the currency would be issued only to a certain definite amount and for a specific purpose.

It has always been understood that Henry Ford was well ahead of his time, but he also thought about a concept that is very similar to whats described in the Bitcoin white paper. Ford even had a location planned to kick start the idea at Muscle Shoals Dam. The treacherous and wild Muscle Shoals section of the Tennessee River produces a lot of energy as the dam provides electrical power, flood control, and a water supply.

Ford even took shots at the banking cartel in 1921, which are basically the same financial institutions and family members running the worlds finances today. Its simply a case of thinking and calculating in terms different from those laid down to us by the international banking group to which we have grown so accustomed that we think there is no other desirable standard, Ford stressed.

While the cypherpunks like Timothy May and Eric Hughes wrote about concepts that looked closer to todays cryptocurrency, many others had visions similar to Henry Fords energy currency concept. The Nobel laureate and Austrian economist Friedrick Hayek discussed the idea of a free market currency.

I dont believe we shall ever have good money again before we take the thing out of the hands of [the] government, Hayek stressed. That is, we cant take it violently out of the hands of [the] government, all we can do is by some sly roundabout way [to] introduce something that they cant stop.

In addition to Hayek, Milton Friedman discussed the idea of a cryptocurrency in 1999. I think that the Internet is going to be one of the major forces for reducing the role of government, Friedman said during his interview that went viral in 2014. The one thing thats missing, but that will soon be developed, is a reliable e-cash, a method whereby on the Internet you can transfer funds from A to B, without A knowing B or B knowing A, the economist added.

Fords energy currency editorial in the New York Tribune not only takes aim at the bankers but blames gold as well. Its very simple when you analyze it, Ford emphasized. The cause of all wars is gold. We shall demonstrate to the world two things, first, the practicability, second, the desirability of displacing gold as the basis of currency and substituting in its place the worlds imperishable natural wealth. Ford continued:

Almost everybody in the world, except the newspapers and bankers recognizes that civilization has entered on a new era. The newspapers dont see it and the international bankers dont want to see it It would mean changes in world finance and bankers always oppose changes.

It could be said that the trend in America has already entered a realm of digital currency which is done mostly by the banking systems databases. In many respects, Ford got his way because the powers that be essentially replaced gold with unbacked fiat. However, fiat is a far cry from a scarce and energy-backed currency Ford dreamt up long ago.

The banking cartel moving off the gold standard has pushed a desirability of displacing gold from both sides of the spectrum. Decentralized crypto assets like bitcoin (BTC) are indeed displacing gold even if the measurement of displacement is still quite small.

These days people use cryptocurrencies as a hedge against fiat and the central banks massive monetary expansions just like precious metal (PM) collectors and gold bugs. In this line of thinking there is also a desirability of displacing gold forming among the masses as digital currencies offer benefits that PMs like gold cannot provide.

According to assetdash.com bitcoin (BTC) is the sixth top asset by market cap. The web portal companiesmarketcap.com says bitcoin (BTC) is positioned in the eighth spot. The top position held by Gold is an $11.161 trillion market valuation, while BTCs is roughly $1.041 trillion, according to the websites metrics. Golds valuation is 972% larger than BTCs as the crypto asset has a long way to go to catch up if it wants to displace gold.

What do you think about Henry Ford predicting a currency similar to bitcoin close to 100 years ago? Let us know what you think about this subject in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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How Henry Ford Envisaged Bitcoin 100 Years Ago A Unique 'Energy Currency' That Could 'Stop Wars' Featured Bitcoin News - Bitcoin News

As bitcoins value has increased, the global hashrate has been steadily climbing higher week after week. On Sunday, the hashrate dedicated to the Bitcoin network is hovering just above the 155 exahash (EH/s) handle and bitcoins price has made a great number of mining rigs more profitable. Older generation mining rigs like Bitmains Antminer S9 series with hashrate speeds around 11 TH/s or higher are also profiting.

Six days ago, Bitcoins overall hashpower was around 130 exahash per second (EH/s) and today its up 19.23% at 155 EH/s. Bitcoin (BTC) markets have been doing well this week up 15.9% during the last seven days. On Sunday, a single BTC is exchanging hands for just above the $55K zone and theres $35.2 billion in global trade volume.

The higher price per BTC has made it so mining rigs are more profitable than they once were a few weeks ago in September. Using todays BTC difficulty and electrical costs of around $0.12 per kilowatt-hour (kWh), the Microbt Whatsminer M30S++ is pulling in over $34 a day per machine. The M30S++ is powerful, of course, as each Microbt machine boasts 112 terahash per second (TH/s).

The Bitmain Antminer S19 Pro (110 TH/s) also makes over $34 per day with the next-generation miners output. The Canaan Avalonminer 1246 boasts around 90 TH/s in hashrate and estimates show it can make $25.88 per day using todays BTC exchange rates. The Strongu Hornbill H8 Pro shows it produces 84 TH/s and profits by $23.67 per day using current exchange rates.

Older units like the Ebang Ebit E11++ (44 TH/s) and the Innosilicon T3 (43 TH/s) pull in anywhere between $11.02 to $11.77 per day in profit. The lowest hashpower producing bitcoin mining machine is the Bitmain Antminer T9 (11.5 TH/s) which can get a miner around $0.39 per day.

Every single Bitmain Antminer S9 series also makes a profit, producing anywhere between $0.84 per day and $2.00 per day, depending on the S9 model. There havent been any new launches in recent times, except for a new mining rig manufacturer from Singapore called Ipollo.

The Ipollo bitcoin miner called the B2 claims to produce 110 TH/s and pulls 3,250 watts from the wall. The mining rigs current profit is $34.31 per day but the machine just came out this month. This means that the new companys devices have not been out for that long and reviews are lackluster and sparse so far.

On Sunday, the mining operation F2pool commands the most hashrate with 26.59 EH/s or 18.69% of the global network. F2pool is followed by Antpool (20.94 EH/s), Poolin (20.94 EH/s), Foundry USA (17.28 EH/s), and Viabtc (14.96 EH/s). Unknown hashrate or stealth miners capture 2.10% of the global hashrate and the 2.99 EH/s puts the mystery hash in the ninth position.

The current mining difficulty is 19.89 trillion and in eight days it is expected to increase by 1.58%. This increase will put BTCs mining difficulty back above the 20 trillion range making it close to 40% harder to mine BTC than three months ago.

What do you think about mining machines gathering higher profits and the older generation mining rigs that can now gain profit? Let us know what you think about this subject in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, asicminervalue.com,

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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BTC's Price Rise Gives 5-Year-Old Mining Rigs New Life Bitcoin Hashrate Jumps Close to 20% Since Last Week Mining Bitcoin News - Bitcoin News

A top crypto analyst and trader says Bitcoin and the rest of the crypto markets are on the cusp of a massive breakout that can push the valuation of all digital assets to $10 trillion.

Justin Bennett tells his 73,600 followers that the TOTAL chart, which tracks the market capitalization of all crypto assets, is threatening to take a crucial resistance area.

Total crypto market cap is holding steady below resistance. $2.4 trillion is the level to break. $2.44 trillion to be safe.

At time of writing, TOTAL is trading at $2.33 trillion.

Bennett predicts that once TOTAL takes out its final resistance area, the skies are clear for a rise to $10 trillion in a matter of months.

Total crypto market cap is testing its May trend line. Break that and carve fresh all-time highs, and we just might get that $10 trillion market cap in early 2022. Weekly chart.

Looking at Bennetts chart, the trader expects TOTAL to reach a $10 trillion valuation by March 2022.

As for the catalyst that could fuel TOTALs rise to new all-time highs, Bennett says that Bitcoin must lead the charge.

I think its a bit naive to doubt the potential of a $10 trillion crypto market cap in the next three to six months. If BTC breaks $65,000, the momentum shift will be fierce. Plus, the total market cap has already done a 20x since March 2020. Whats another 4.2x?

Note that I said, if BTC breaks $65,000.

Thats crucial! As bullish as Ive sounded lately, everything hinges on Bitcoin trading above $65,000 this year.

Featured Image: Shutterstock/Mykola Holyutyak/Dario Lo Presti

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Bitcoin and Crypto on the Brink of Rising to $10 Trillion Market Cap, Says Top Analyst Heres His Tim... - The Daily Hodl

Coming every Saturday, Hodlers Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more a week on Cointelegraph in one link.

Indian crypto exchange CoinSwitch Kuber closed a $260 million Series C funding round this week at a valuation of $1.91 billion, adding itself to the prestigious unicorn club.

The funding round was led by Coinbase Ventures and Andreessen Horowitz, the latter of which has emerged as a leading crypto venture capital firm. Following the $1.91 billion valuation, CoinSwitch Kuber is said to be Indias most valued crypto firm.

Speaking of funding, Sky Mavis, the developers of the immensely popular NFT game Axie Infinity, announced a $152 million Series B funding round on Tuesday. Unsurprisingly, Andreessen Horowitz backed the funding round along with participation from FTX.

The same set of bullish indicators that sent Ether (ETH) surging 7,000% in 2017 has appeared again in 2021, suggesting that the asset is on track to reach the moon before Dogecoin (DOGE).

The fractal indicator from 2017 consists of at least four technical patterns that were instrumental in pushing the price up, including the relative strength index (RSI), stochastic RSI, bullish hammer, and a Fibonacci retracement level.

At the time of writing, Ether is worth $3,600, indicating that the price could hit $13,000 if history repeats itself.

The Nigerian Federal High Court has approved the rollout of the eNaira central bank digital currency (CBDC).

The CBDC was launched for beta testing on the nations 61st Independence Day celebration on Oct. 1 and has now been given the green light to circulate alongside its fiat counterpart. The CBDC is being touted as a faster, cheaper and more secure option for transactions. It will also be supported by an eNaira wallet.

The official eNaira website says that the digital version of the Nigerian naira will be made available universally, stating that anybody can hold it.

The ongoing legal dispute between Ripple Labs and the United States Securities and Exchange Commission (SEC) has taken another turn as U.S. District Judge Analisa Torres ruled on Monday that individuals holding XRP tokens cannot act in Ripples ongoing lawsuit as defendants.

The ruling came after several ambitious XRP hodlers aimed to file friends of the court briefs which, if granted, would enable them to join the bloody battle as defendants, alongside Ripple, against SEC assertions of XRP being a security.

The judge said the ruling was for their own good, as it would compel the trigger-happy SEC to take action against the XRP hodlers as well. However, it was determined that they could participate as amicus curiae a party that is not involved in the litigation but is allowed by the court to advise or provide information.

Bitcoin (BTC) returned to its $1 trillion asset status this week as the price surged past $55,000.

It appears that the damage caused by the China mining ban in May has been wiped clean, suggesting that there could be a run to new all-time highs in the coming weeks or months. At the time of writing, BTC is worth $54,900 and sits 14.9% below the all-time high.

Honestly, I think well be continuing to see strength on Bitcoin, Cointelegraph contributor Michal van de Poppe said, adding:

USDT pairs will be fine on altcoins, but perhaps well be having 6-8 weeks of some corrections on the $BTC pairs, before a new party starts. December/January is often the best period to buy alts.

At the end of the week, Bitcoin is at $54,176, Ether at $3,612 and XRP at $1.07. The total market cap is at $2.30 trillion, according to CoinMarketCap.

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are SHIBA INU (SHIB) at 244.87%, Fantom (FTM) at 74.68% and Axie Infinity (AXS) at 47.02%.

The top three altcoin losers of the week are eCash (XEC) at -10.20%, Huobi Token (HT) at -8.70% and Amp (AMP) at -6.85%.

For more info on crypto prices, make sure to read Cointelegraphs market analysis.

Policymakers should implement global standards for crypto assets and enhance their ability to monitor the crypto ecosystem by addressing data gaps. [] Emerging markets faced with cryptoization risks should strengthen macroeconomic policies and consider the benefits of issuing central bank digital currencies.

International Monetary Fund

For us, digital assets are not about payments per se. Theyre about a new computing paradigm a programmable computer that is accessible everywhere and to anyone and owned by millions of people globally.

Bank of America Securities

We did a survey of our membership, and it was very impressive: 110 countries are at some stage of looking into CBDCs.

Kristalina Georgieva, managing director of the International Monetary Fund

What a crazy concept this is, that we as a country embrace so many bright, young, talented people to come up with a replacement for our reserve currency. [] I wish all this passion and energy that went to crypto was directed towards making the United States stronger.

Ken Griffin, founder of Citadel LLC

The best way to look at it, if youre an investor, either you believe in decentralized finance and centralized finance, and you believe in Bitcoin and Ethereum and the blockchain, or you dont. If you dont, stay in gold as a hedge, and if you do, tip into it.

Kevin OLeary, Shark Tank Judge

Im not going to get into any one token, but I think the securities laws are quite clear if youre raising money [] and the investing public [] have a reasonable anticipation of profits based on the efforts of others, that fits within the securities law.

Gary Gensler, chairman of the U.S. Securities and Exchange Commission

My bill with Congresswoman Ross would set disclosure requirements when ransoms are paid and allow us to learn how much money cybercriminals are siphoning from American entities to finance criminal enterprises and help us go after them.

Elizabeth Warren, U.S. senator

Bitcoins $50,000 resistance point since May appears ripe to become the cryptos support value in 4Q.

Mike McGlone, senior commodity strategist at Bloomberg

This week saw Bitcoin crack the $50,000 mark and continue upward past $55,000. Although upward price action accompanied the start of September, Bitcoin showed more of a downward trend for most of the month. Price action for BTC has posted upward pressure so far for October, but time will tell how the rest of the month plays out.

On a broader scale, in an Oct. 2 tweet, stock-to-flow model creator PlanB expressed the possibility that the current Bitcoin bull run still has several months of upward action ahead. My guess: this 2nd leg of the bull market will have at least 6 more months to go, PlanB said in the tweet, posting one of his BTC stock-to-flow models.

Several other factors are also relevant to determining Bitcoins outlook, including analyses of the assets hash rate estimates and technical indicators.

Hodlers of the Evolved Apes NFT avatar project were left gobsmacked this week after one of the developers reportedly went rogue and swiped 798 ETH, worth around $2.9 million.

The anonymous developer who goes by the pseudonym Evil Ape is said to have dashed off with all the funds generated from the initial mint of the 10,000 tokenized apes, along with the gains from sales on the secondary market.

Apart from allegedly stealing 798 ETH, Evil Ape also took down the projects website and Twitter account. There was also a blockchain-based fighting game that was promised by the projects creators, and while the outlook is grim, the community is driving a recovery initiative dubbed Fight Back Apes.

Hedge fund manager Ken Griffin was the source of some mixed FUD this week as he slammed crypto as a jihadist call against the U.S. dollar.

Griffin, who is the founder of the $38 billion hedge fund Citadel LLC, and said that crypto is a Jihadist call that we dont believe in the dollar, as he took aim at the pesky youth for spending so much time working on digital assets.

I wish all this passion and energy that went to crypto was directed towards making the United States stronger, he added.

The Citadel founder, however, stated that his firm is yet to enter the crypto sector due to the lack of regulatory certainty, suggesting that hes more worried about compliance than a jihadist call against the precious greenback.

SEC Chairman Gary Gensler said on Tuesday that his agency does not have the authority or intention to ban crypto, stating, That would be up to Congress.

However, Gensler highlighted that many crypto tokens fall under the enforcement power of the SEC. He singled out financial stability issues that arise from stablecoins as a key area of focus for the agency.

Its a matter of how we get this field within the investor consumer protection that we have and also working with bank regulators and others how do we ensure that the Treasury Department has it within Anti-Money Laundering, tax compliance? Gensler said.

While Bitcoin is the most recognizable digital asset, its just one of many that are here to evolve financial services globally.

In coexistence with mutual benefits, decentralized finance and central bank digital currencies will finally make money universally available worldwide.

Imagine if the money that you have in your bank account now would suddenly buy you 1/10th of what it had? That happened in a week.

Follow this link:
CoinSwitch Kuber becomes crypto unicorn, Bitcoin returns to a $1T market cap, and a 2017 Ethereum fractal that resulted in 7000% gains resurfaces:...

BitMEX chief executive officer Alexander Hptner is predicting that five developing nations will follow in El Salvadors footsteps and adopt Bitcoin (BTC) as legal tender by next year.

In a blog post, the head of the crypto exchange says BTC will help citizens of developing countries financially by reducing the transaction fees associated with sending money across the globe.

Remittances made up an astounding 23% of El Salvadors GDP (gross domestic product) in 2020. Across the world, its nearly 10% of GDP in the Philippines, which has over 10 million overseas Filipino workers. According to World Bank data, low and middle-income countries receive about 75% of total global remittances.

This money has got to find a way home somehow. But the current system of remittances ischarging [people] an average of 10% just to send money home the next business day People deserve better. So is it any surprise that Bitcoin with its near-negligible fees and quick 24/7/365 transactions would pique the interest of countries reliant on remittances?

Hptner says another reason developing nations may adopt BTC is growing concerns of runaway inflation, something Bitcoin is not burdened by as it has a maximum supply cap of 21 million.

The IMF (International Monetary Fund) forecasts 2021 inflation for developed countries at 2.4%. Its estimate for developing countries is more than double, at 5.4%. While consumers in advanced economies might be better placed to weather shocks, people in developing countries are more vulnerable, especially when the price of consumer goods and services is impacted

Bitcoin fixes this, with its capped supply of 21 million. And developed countries and/or their people are noticing.

Lastly, Hptner says the decision to adopt BTC as legal tender ultimately rests with political leaders and that El Salvadors leap of faith has made it easier for them to take the plunge.

On a macro level, those who will make the decision to make Bitcoin legal tender will be politicians or rulers. Bitcoin is many things a technology, a store of value, and a means of payment.

Its also a cultural touchstone and, at its core, an expression of the users lack of faith in the global financial system as presently constructed

What El Salvador did is take the first leap of faith, making similar moves by other countries much easier to consider.

Featured Image: Shutterstock/Dai Mar Tamarack

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BitMEX CEO Predicts Five Developing Countries Will Accept Bitcoin As Legal Tender Next Year Heres Why - The Daily Hodl

A visual representation of bitcoin.

STR | NurPhoto via Getty Images

Bitcoin rose back above the $50,000 mark on Tuesday after plunging in September from the same level on fears about regulation in the U.S. and China.

Bitcoin rose as high as about $50,400 on Tuesday, topping a key psychological resistance level for traders and reclaiming third-quarter losses. It last traded 3% higher at $50,680.82. It's currently up 14% so far for the month of October and has gained 72% on a year-to-date basis.

The last time bitcoin broke $50,000 was at the start of September, when the cryptocurrency became legal tender in El Salvador. Cryptocurrencies have been rallying since Friday as investors bet on a fourth-quarter run. Bitcoin spent much of the third quarter hovering in the low $30,000 range as investors worried about regulatory policies in China and the U.S., though it had a strong finish.

Teddy Vallee, chief investment officer at Pervalle Global Capital, said he expects momentum to continue through the quarter if a big equity correction doesn't get in the way of it.

"Long term holders now make up more than 80.5% of total supply, which has historically led to large rallies over the ensuing six months," he said. "Absent of a large equity correction, we see prices higher from here by year end. Incremental demand should remain strong, as institutional adoption continues to accelerate, which creates a favorable supply/demand dynamic."

The rally comes on the heels of comments made last week by Federal Reserve chairman Jerome Powell, who said in aHouse Committee on Financial Services hearing that he has "no intention to ban" cryptocurrencies in the U.S. the way China repeatedly has.

There's been bullish commentary from Wall Street supporting the comeback. Bank of America called the digital assets sector "too large to ignore."

"Bitcoin is up over 2x its 2017 high at ~$47,000, as adoption by individuals increased, corporate managements begin due diligence and regulators work to provide a framework that could bring digital assets into the mainstream," it said. "Bitcoin remains the most valuable digital asset at an aggregate value of $887 billion. Value drivers include supply/demand dynamics, scarcity (only 21 million coins total; ~19 million already mined) and potential ETF approval timing."

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Bitcoin climbs back above $50,000 as it starts October on a tear - CNBC

SAN SALVADOR, June 9 (Reuters) - El Salvador became the first country in the world to adopt bitcoin as legal tender after Congress on Wednesday approved President Nayib Bukeles proposal to embrace the cryptocurrency, a move that delighted the currencys supporters.

With 62 out of 84 possible votes, lawmakers voted in favor of the move to create a law to adopt bitcoin, despite concern about the potential impact on El Salvador's program with the International Monetary Fund.

Bukele has touted the use of bitcoin for its potential to help Salvadorans living abroad to send remittances back home, while saying the U.S. dollar will also continue as legal tender. In practice, El Salvador does not have its own currency.

"It will bring financial inclusion, investment, tourism, innovation and economic development for our country," Bukele said in a tweet shortly before the vote in Congress, which is controlled by his party and allies.

In an idea he appeared to have developed overnight, Bukele later said he had instructed state-owned geothermal electric firm LaGeo to develop a plan to offer bitcoin mining facilities using renewable energy from the country's volcanoes. read more

He said the idea was to build a bitcoin mining hub around the country's geothermal potential. He also said that El Salvador would offer citizenship to people who showed evidence they had invested in at least three bitcoins.

The use of bitcoin will be optional for individuals and would not bring risks to users, Bukele said, with the government guaranteeing convertibility to dollars at the time of transaction through a $150 million trust created at the country's development bank BANDESAL.

Under the law, bitcoin must be accepted by firms when offered as payment for goods and services. Tax contributions can also be paid in the cryptocurrency.

"If you go to a McDonald's or whatever, they cannot say we're not going to take your bitcoin, they have to take it by law because it's a legal tender," Bukele said in an online conversation he held with crypto-currency industry figures in parallel to the debate in Congress.

Its use as legal tender will begin in 90 days, with the bitcoin-dollar exchange rate set by the market. Bukele said the government and Central Bank did not currently hold any bitcoin.

In the capital, San Salvador, reactions were mixed, with some excited that the new currency could increase prosperity and financial options. Others were skeptical.

"How am I going to agree with this? I haven't seen it even in photos. I know nothing about it, you need to understand your currency," said Estela Gavidia, clutching shopping bags and recalling the loss of purchasing power many poor people suffered when the dollar was adopted in 2001.

Cryptocurrency supporters hailed the move as legitimising the emerging asset, but its impact on bitcoin regulation, taxation or adoption in other countries remains to be seen.

There were no immediate signs that other countries would follow El Salvador's embrace of bitcoin.

"Whether this becomes the first in what becomes a trend and then snowballs, or whether this will be a blip, we will only know through history," said Brandon Thomas, partner at advisory firm Grayline Group.

Analysts have also said the move could complicate talks with the IMF, where El Salvador seeks a more than $1 billion program. read more

Bukele said he will meet with the IMF on Thursday to discuss the bitcoin law, among other issues. He said in setting up the meeting he had tried to explain to them that the shift was "not going to change our macroeconomics."

Bitcoin banners are seen outside of a small restaurant at El Zonte Beach in Chiltiupan, El Salvador June 8, 2021. REUTERS/Jose Cabezas/File Photo

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Bitcoin enjoyed its best day in two weeks, rising as much as 6% to $35,200.

"The market will now be focused on adoption through El Salvador and whether other nations follow," said Richard Galvin of crypto fund Digital Asset Capital Management. "This could be a key catalyst for bitcoin over the next two to three years."

BEACH INSPIRATION

It was not immediately clear how long Bukele had been working on the bitcoin plan, but he said on Wednesday he was inspired by a project called Bitcoin Beach that introduced the cryptocurrency in an El Salvador beach town last year.

He worked on the idea with Jack Mallers, CEO of Strike, a digital wallet that uses the Lightning Network to enable small payments in Bitcoin.

Bukele has also pointed out a tweet of his from 2017, before he was a presidential candidate, in which he suggested using bitcoin.

Emerging economies - where bank penetration is much lower than in developed countries and reliance on money transfers from abroad much higher - have quickly warmed to cryptocurrencies.

Outside the United States, countries with the highest crypto production and trading volumes are all developing nations, according to BofA, including China, Colombia and India.

Bukele says some 70% of people in El Salvador lack access to traditional financial services.

But the use of digital currencies in general can also pose risks for dollarized economies, analysts say.

"The root cause of dollarization is high local inflation, which could worsen, too, if digital currencies prove inflationary," said David Hauner at BofA.

El Salvador relies heavily on money sent back from workers abroad. World Bank data showed remittances to the country made up nearly $6 billion or around a fifth of GDP in 2019, one of the highest ratios in the world.

The cryptocurrency offers, in theory, a quick and cheap way to send money across borders without relying on remittance firms typically used for such transactions. It is not clear what proportion of remittances sent to El Salvador are in bitcoin.

Converting local currencies to and from bitcoin often relies on informal brokers, while trading often demands technical knowledge.

El Salvador will promote training and mechanisms to allow access to bitcoin transactions, the law said.

Financial regulators and policymakers warn bitcoin facilitates money laundering and other illicit uses.

Bukele brushed off the fears, saying criminals already use U.S. dollars and other assets to launder money.

The problem is not the dollar, it is the criminals, he said.

Reporting by Nelson Renteria, Writing by Daina Beth Solomon, editing by Louise Heavens

Our Standards: The Thomson Reuters Trust Principles.

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In a world first, El Salvador makes bitcoin legal tender ...

'What Bitcoin Did' presenter Peter McCormack talks about his crypto investments

Peter McCormack, bitcoin bull and voice of the hugely popular 'What Bitcoin Did' podcast, joins Claer for a Money Clinic Investment Masterclass about cryptocurrencies. Recently back from a trip to El Salvador, the first country to make bitcoin legal tender, Peter tells Claer why he believes the cryptocurrency is the 'best form of money' and why regulatory crackdowns, volatile pricing swings and the divergent opinions of professional investors have failed to dampen his enthusiasm.An investor with a long-term view, Peter shares the highs and lows of his personal investment journey, and sets out the risks younger investors should know about before risking a single satoshi. With insight from Katie Martin, the FTs markets editor.

Further reading:

Check out Peters podcast 'What Bitcoin Did'

Have you heard this Money Clinic episode? Bitcoin: Ill either be rich, or wrong

Theres a free-to-read column from Claer: Why young investors bet the farm on cryptocurrencies

Heres Vijay Boyapatis The Bullish Case for Bitcoin

Presented by Claer Barrett. Produced by Clare Williamson. Edited by Persis Love. Sound design by Breen Turner.

See acast.com/privacy for privacy and opt-out information.

Transcripts are not currently available for all podcasts, view our accessibility guide.

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'Bitcoin is the best form of money': Investment notes from a crypto expert - Financial Times

Twelve years ago today, pseudonymous Bitcoin user NewLibertyStandard published what is likely the first pricing of Bitcoin in US Dollar terms.

On his website of the same name, NewLibertyStandard went on to describe how they formulated their 2009 exchange rate:

During 2009 my exchange rate was calculated by dividing $1.00 by the average amount of electricity required to run a computer with high CPU for a year, 1331.5 kWh, multiplied by the the average residential cost of electricity in the United States for the previous year, $0.1136, divided by 12 months divided by the number of bitcoins generated by my computer over the past 30 days.

The pricing of Bitcoin in dollar terms is remarkable because it signals the first mark of demand for the asset, or one methodology of how an exchange dynamic could arise. This theoretical price signals the following:

Someone in the market was willing to part with $1 dollar for 1,309.03 BTC, because they valued that amount of Bitcoin more than $1 dollar. Conversely, a counterparty at that time (in this case probably NewLibertyStandard as well) was willing to trade 1,309.03 BTC for $1 dollar, because they valued the Bitcoin less than one dollar. The price of 1 BTC was $0.00076392.

On 6 October 2009, the price in Bitcoin rose by NewLibertyStandards measure. For a moment that day, the price of 1 BTC was $0.00088454.

At the time of writing, 1 BTC costs about $49,880.00.

Lets compare:

5 October 2009: 1BTC = $0.00076392

5 October 2021: 1BTC = $49,880.00

49,880.00 - 0.00076392 = 49,879.9992

49,879.9992 / 0.00076392 = 65,294,794.3

65,294,794.3 * 100 = 6,529,479,430%

Bitcoin has risen 6,529,479,430% since it was first priced in US dollars. Bitcoin is the most appreciating asset in human history.

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Bitcoin Is Up 6.5 Billion Percent Since It Was First Priced In USD - Bitcoin Magazine

Bitcoin price today surged above the $50,000 mark for the first time in four weeks. The world's largest cryptocurrency by market capitalization rose more than 5% to to hit $50,312 on Tuesday.

The cryptocurrency fell below that level on September 7 amid a broader selloff in shares of cryptocurrency and blockchain related firms that day. It continued to fall in September, hitting a low of $40,596 on September 21.

Other cryptocurrency prices also gained with ether, the coin linked to ethereum blockchain and the second largest crypto trading at $3,466, up 3%. Cardano, dogecoin and other digital tokens including XRP, Litecoin, Uniswap also were higher.

Cryptocurrency investment products and funds recorded inflows for a seventh straight week, as institutional investors warmed to more supportive statements from regulators, data from digital asset manager CoinShares showed on Monday.

Bitcoin recorded its third straight week of inflows. Ethereum products and funds, meanwhile, posted another week of inflows totalling $20 million, despite conceding market share to bitcoin in recent weeks. Inflows to ether, the token for the Ethereum blockchain, so far this year amount to $1 billion.

Another report showed that India, Vietnam and Pakistan are helping to lead the expansion of cryptocurrency markets in central and southern Asia, according to Chainalysis. Indias market grew 641% over the past year and Pakistans 711%, a report from Chainalysis showed, using a metric that estimates the total cryptocurrency received by a country.

(With inputs from agencies)

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Bitcoin price hits $50,000 for first time in a month - Mint