The implementation of Bitcoin as legal tender in El Salvador was welcomed by the crypto community and promptly triggered a Flash Crash with the crypto industry dropping 10% as the Leverage Markets sold their positions. Investor buying remained strong however.
Wait What!?
The above makes more sense when you understand the bold
Flash Crash
Massive crypto sell off that happened within minutes
Leverage Markets
Gamblers gambling on the price movement.
Investor
Everyone else buying and holding crypto
Summary
It’s not really apparent what caused the flash crash so naturally the conspiracy theories have taken route. It could be El Salvador driving the price down to get a better deal or it could be large holders trying to manipulate the price (who knows). Pick your favourite conspiracy theory and talk about it with confidence, we won’t mind.
Microstrategy Buys Another 5,050 Bitcoin
Michael Saylor is a huge Bitcoin advocate and runs Microstrategy. Microstrategy holds a lot of Bitcoin and its shares are held by companies that want access to Bitcoin without holding physical Bitcoin on its balance sheets.
They continue to buy more Bitcoin in the face of all opposition. What do they know that you don’t…?
Ukraine Set To Become Next Country To Make Bitcoin Legal Tender
On September 8th, 2021, the Ukrainian Parliament passed a law that legalises and regulates Bitcoin in Ukraine. The bill was drafted in 2020 passed with a total of 276 lawmakers supporting the law, and 6 opposed.
This is good news for Ukrainians with Bitcoin as previously Bitcoin was neither legal nor illegal. The law provides clarity for individuals and businesses.
Other reports suggest Ukrainian President Volodymyr Zelensky is on a mission to turn Ukraine into a Crypto friendly country by making Bitcoin legal tender by 2023. That gives them some time to watch how El Salvador plays out before making their own move (smart).
Miami Coin
What is Miami coin? This is an interesting concept where by using the Bitcoin protocol and the Stacks smart contract platform the city of Miami is able to create a decentralised application platform for various funding implementations.
Here is the idea:
People can support the city of Miami by buying or mining Miami Coin
Buying/Mining Miami Coin will divert a portion of the proceeds to the city’s treasury
Miami can spend the proceeds however it wants (although this is fully transparent because anyone can follow the transactions)
Miami Coin holders will then be able to earn yield from holding Miami Coin using the Stacks protocol
In the future the city can incentivise people to hold and spend Miami Coin by offering city level perks to holders.
Miami Coin can be converted to Bitcoin at any time.
We will be watching this space carefully and expect new cities to announce similar actions very soon. It will be interesting to see what Miami chooses to spend the treasure money on.
Until Next Time
The Wealth Gap