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El Salvador Considers Opening Second Bitcoin Embassy in Texas to Boost Economic Exchange

El Salvador Considers Opening Second Bitcoin Embassy in Texas to Boost Economic ExchangeOn Feb. 14, 2023, Milena Mayorga, the Salvadoran ambassador to the United States, announced that her country is considering opening a second bitcoin embassy in the Lone Star State. Mayorga said that Texas is “our new ally” and the goal is to expand “commercial and economic exchange projects.” Ambassador Milena Mayorga Fosters Growing Relationship Between […]

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Billionaire Tim Draper Says Bitcoin (BTC) Will Make El Salvador One of the Richest Nations on Earth

Billionaire Tim Draper Says Bitcoin (BTC) Will Make El Salvador One of the Richest Nations on Earth

Venture capitalist Tim Draper says Bitcoin (BTC) will likely transform El Salvador from one of the poorest countries in the world to one of the richest. In a new interview with popular crypto bull Anthony Pompliano, the billionaire predicts that the decision by El Salvador President Nayib Bukele to invest in the king crypto and […]

The post Billionaire Tim Draper Says Bitcoin (BTC) Will Make El Salvador One of the Richest Nations on Earth appeared first on The Daily Hodl.

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Bitcoin capitulations abound — Data shows realized and unrealized losses at record-highs

Bankruptcies, shrinking profit margins and traders realizing hefty losses are all signs of capitulation from various market participants.

Being three weeks removed from the FTX collapse, Bitcoin (BTC) analysts are combing through data to decipher whether more selling will continue or if a bear market floor has been reached. 

One thing miners, short-term and long-term holders have in common is they are losing in the Bitcoin market right now.

According to on-chain analysis from Glassnode, the scale of both realized and unrealized losses amongst Bitcoin holders is one of the heaviest capitulation events in BTC’s history. Capitulation is hindering all groups from the increasing number of bankruptcies and dwindling miner revenue.

Bitcoin’s realized losses fourth largest on record while unrealized losses increase

November recorded $10.8 billion in 7-day realized losses for Bitcoin. The largest recorded realized loss in Bitcoin’s history is June 2022 when $19.8 billion was recorded. Such losses show that a large volume of Bitcoin has changed hands at discounted prices.

Bitcoin realized 7-day losses. Source: Glassnode

A popular crypto investing saying is “you cannot lose if you do not sell.” Unrealized losses track the entire Bitcoin market versus total market capitalization. The November 2022 56% unrealized loss is the largest in the current bear market. In 2014-2015, unrealized losses hit an all-time high for Bitcoin holders at 86%. The current unrealized losses are the fourth largest in Bitcoin’s history.

According to Glassnode analysts:

“This metric has recently peaked at 56%, which is the highest for this cycle, and comparable to prior bear market floors.”
Bitcoin unrealized losses 7-day moving average. Source: Glassnode

Block times slow down as Bitcoin miners struggle

Bitcoin investors are not the only group capitulating in the current market. Bitcoin miners are struggling to remain profitable with the depressed prices.

Since Bitcoin miners are under pressure to remain financially viable, this affects the BTC mining hash rate. A reduction in Bitcoin’s hash rate slows down BTC transactions. According to HashRate Index, block times reached over 11 minutes.

Despite the current challenges, analysts believe that capitulation is healthy for starting the next bull run. Glassnode notes:

“One consistent event which motivates the transition from a bear back towards a bull market is the dramatic realization of losses, as investors give up and capitulate at scale.”

With so many groups currently at a loss at this stage of the bear market post-FTX collapse, Bitcoin and overall market sentiment will need to improve to spur new money to drive a bull run. Without improved sentiment, the capitulation may not match previous Bitcoin cycles.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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Bitcoin, space travel and TikTok debut in Guinness World Records

The latest edition has included a host of achievements from “Cryptomania,” including the record CryptoPunk NFT sale and El Salvador becoming the first country to adopt BTC as a legal Tender.

Guinness World Records has added Bitcoin (BTC) and a number of blockchain events in the latest edition of its record book under the category of “Cryptomania.”

The recognition of crypto by a mainstream staple such as Guinness World Records indicates that blockchain and digital assets were among the most publicly touched-on subjects over the past couple of years.

The 2023 edition, launched last month, has seen a number of notable crypto achievements included which spanning Bitcoin, crypto adoption, fan tokens and nonfungible tokens (NFTs).

Bitcoin was unsurprisingly recognized as the most valuable cryptocurrency, with its market cap of $816.69 billion as of March 24, 2022, while it also got recognition for being the world’s first decentralized crypto after launching in early 2009.

“Bitcoin was developed as a solution to the challenge of regulating a digital currency without any centralized organization, or ‘trusted third party’, to oversee transactions,” The Guinness World Records’ description reads online, adding that other attempts had come before that ultimately relied on a trusted third party.

OG NFT project CryptoPunks also made the cut for the most “expensive NFT collectible” after CryptoPunk #5822 was purchased for $23.7 million, or 8,000 Ether (ETH) on Feb. 12 this year by entrepreneur Deepak Thapliya.

It is worth noting that Beeple’s record $69.3 million record NFT sale didn’t make the cut there, as the firm described an NFT collectible as “limited-edition sets of artwork built around pre-rendered templates.”

Fan tokens also appeared as a category in the book. Manchester City’s token — launched via Socios in June 2021 — was recorded as the “most valuable fan token” with a market cap of $47.1 million as of March 24, 2022.

El Salvador was also included in the book for being the “first country to adopt Bitcoin as legal tender” in June last year.

“It was hoped that this move, which was condemned by the World Bank, would reduce the cost of international transfers — an important consideration for a country that is reliant on money sent home by workers overseas,” it read.

A Guinness World Records spokesperson told Cointelegraph that each edition “tries to reflect that year’s zeitgeist and the topics our readers are likely to be discussing,” with crypto joining the likes of space travel and TikTok as key subjects.

“We will be watching this space with interest over the next few years, as the technologies that underpin crypto develop and find a wider range of applications,” they said.

Related: Walmart CTO says crypto will become a 'major' payments disruptor

When asked about what was the most head-scratching and monumental records from Cryptomania, the spokesperson highlighted the innovation of Bitcoin, noting that it took the company a long time to get its head around it:

“Researching this title involved not only figuring out how to describe what a blockchain is [...] but also putting into context decades of cryptocurrency research and what made it different to any earlier projects.”

Last week, crypto exchange Binance also revealed that it had broken a Guinness World Record after it was recognized for conducting the largest crypto lesson to date, with 289 people in attendance at Blockchain Land Nuevo León on Oct. 7.

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Beers for Bitcoin: Here’s the story of Satoshi’s Place pub in the UK

Cointelegraph’s Joseph Hall visited a Bitcoin-themed bar in Greater Manchester and spoke with its founder, Adam.

While opening a Bitcoin-themed bar sounds like a dream for many Bitcoiners, it also comes with its challenges, according to Adam (who did not share his last name), the founder of Satoshi’s Place. 

Cointelegraph reporter Joseph Hall visited a Bitcoin-themed pub called Satoshi’s Place and sat down with its founder. The duo talked about the place’s history, how it came to be and the difficulties of running a Bitcoin business in the United Kingdom.

According to Adam, he first got into Bitcoin (BTC) in 2013. Five years later, he opened a coffee and breakfast shop that accepted Bitcoin payments with its own Bitcoin ATM. Back then, the founder highlighted that they did not have the Bitcoin Lightning Network and had to wait for a bit for payments to go through. He explained that:

“That was literally layer one. It wasn't lightning, it was slow. But I mean, it was only kind of small amounts anyway. So, we just let the user sit down and watch the transaction and stuff.”

After a while, the cafe's team did some testing over the years but had difficulties in terms of adoption and troubles with their bank. “I had a bank account here which got blocked for about a year just for taking Bitcoin payments,” he said. Adam highlighted that even though everything was documented properly and presented to the banks, their accounts were still blocked. 

Despite the issues faced, the founder said that they still carried on. From just being a coffee shop, the place started to offer pizzas in honor of the Bitcoin Pizza Day. Eventually, the place also offered workshops to those who wanted to learn about Bitcoin. “Everything from Lightning education, Bitcoin for kids, Bitcoin development, all different types. There are about 16 hosts that I've got up to now that want to do workshops,” Adam noted.

Related: Grayscale Bitcoin Trust trades at a record 36.7% discount, but is it justified?

After the growth of the workshops and the reception for Bitcoin in the area, the founder eventually turned the place into Satoshi’s Place, in celebration of Bitcoin’s pseudonymous creator. The place offers a Bitcoin-themed atmosphere with hand dryers emitting heat from a Bitcoin miner.

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Salvadoran President Nayib Bukele Takes Aim at Bitcoin Detractors, Says the Ones Who Are Afraid ‘Are the World’s Powerful Elites’

Salvadoran President Nayib Bukele Takes Aim at Bitcoin Detractors, Says the Ones Who Are Afraid ‘Are the World’s Powerful Elites’It’s been over a year since El Salvador codified bitcoin as legal tender in the Latin American country, and by popping the ‘orange pill,’ the country was propelled into the international spotlight. At the end of September, the 41-year-old Salvadoran president Nayib Bukele penned an opinion editorial that takes aim at the detractors who think […]

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Central African Republic President Says Successful Launch of Sango Coin a Key Milestone

Central African Republic President Says Successful Launch of Sango Coin a Key MilestoneAccording to Central African Republic President Faustin-Archange Touadéra, his country’s launch of the “Sango coin” currency, as well as the call for the creation of a common digital currency by the regional central bank, represent two key achievements for his country and all of Africa. President Touadéra also said “Sango is the future of our […]

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The more you know about Bitcoin, the more optimistic you are: Block survey

Over 9,500 people around the world were surveyed for Block’s 2022 Bitcoin report which showed that more optimistic individuals possessed a greater self-reported knowledge level of the crypto.

A survey from digital payment company Block Inc. has found that the higher respondents rated their own level of cryptocurrency knowledge, the more optimistic they are about the future of Bitcoin (BTC).

Block surveyed more than 9,500 people from the Americas (2,375), EMEA (4,360) and APAC (2,860) regions in January, ensuring to include 100 Bitcoin owners in each region for its 2022 Bitcoin Knowledge and Perceptions Report.

The report, released on May 31, shows a correlation between optimism and the likelihood of purchasing and compared the result with the respondent's self identified level of knowledge.

Of those who identified as having fair to expert knowledge of crypto 41% say they’re “very likely” to purchase Bitcoin in the next 12 months, compared to just 7.9% of those with “limited to no knowledge.”

Despite higher income individuals having slightly more optimism for Bitcoin’s future than lower income individuals, the lower income countries of Nigeria, India, Vietnam, and Argentina reported the highest rates of optimism and the highest claimed levels of cryptocurrency knowledge.

Source: Block Inc. Bitcoin Knowledge and Perceptions Report 2022

Education and promotion seems like the key to adoption as the biggest reason (cited by 51% of respondents) for not buying Bitcoin was a lack of knowledge. The second most cited reason was the potential risk of theft (32%) and the perception that BTC had too much price volatility (30%) came in third.

Lower income nations see the utility

The report details that individuals on lower incomes actually use Bitcoin practically, with more than 40% responding they’re most likely to buy it as an easy way to send money or purchase goods.

In comparison higher income people more often consider Bitcoin a way to make money (50%) or to diversify an investment portfolio (30%), however around the same amount (39%) signaled purchasing goods was also a reason they would buy.

Respondents from countries reporting a higher level of income from remittances and lower per-capita gross domestic product (GDP) were more likely to cite a Bitcoin purchase as a good way to send money or purchase goods.

Source: Block Inc. Bitcoin Knowledge and Perceptions Report 2022

Block also reported a strong correlation between countries with high inflation rates to those who responded that Bitcoin was a “protection against inflation” with 45% of Argentinian respondents using Bitcoin this way, the highest percentage of any country.

Related: Accessibility is the main barrier to crypto adoption — Here are the solutions

As previously reported by Cointelegraph, crypto adoption in Argentina is double the rate of other countries in the region with many turning to Bitcoin attempting to hedge against an inflation rate of nearly 60%.

Source: Block Inc. Bitcoin Knowledge and Perceptions Report 2022

Overall and across regions, Bitcoin was the cryptocurrency which respondents were most aware of with 88% saying they’ve heard of it which is twice as many as the 43% who say they've heard of Ethereum (ETH).

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World Bank won’t support Central African Republic’s Sango crypto hub

The World Bank has said “it will be physically impossible” for the lender to fund the planned Sango crypto hub and voiced concerns regarding the country’s adoption of Bitcoin.

The World Bank has signalled its concerns over the Central African Republic (CAR) adopting Bitcoin (BTC) as a legal currency and says it won’t support the newly announced “Sango” crypto hub.

At the end of April CAR president Faustin-Archange Touadéra established a regulatory framework for cryptocurrency in the country and adopted Bitcoin as a legal tender. On May 24 he announced a plan to launch the country’s first crypto hub called “Sango”.

Sango is described as the country’s first “Crypto Initiative” — a legal hub for crypto related businesses encompassing economic policies including no corporate or income tax and thecreation of a virtual and physical “Crypto Island.”

An official document outlining the Sango project states that the country “received approval for a $35 million development fund from The World Bank for the digitization of the public sector.”

However a spokesperson for the institution told Bloomberg via email the recently approved grant “is unrelated to any cryptocurrency initiative.” and that “the World Bank is not supporting ‘Sango – The First Crypto Initiative Project’.”

The $35 million grant from the World Bank announced May 5 was meant for updating and digitizing the existing public financial management system such as improving digital bank payments.

In the statement The World Bank added “it will be physically impossible” for the institution to fund the Sango project and expressed disapproval of the CAR’s adoption of Bitcoin:

“We have concerns regarding transparency as well as the potential implications for financial inclusion, the financial sector and public finance at large, in addition to environmental shortcomings.”

CAR’s Bitcoin adoption has also caught the ire of the governor of the Bank of Central African States (BEAC) Abbas Mahamat Tolli who wrote a scathing letter to CAR Finance Minister Hervé Ndoba shortly after news of the adoption.

In the letter Tolli wrote the new law “suggests that its main objective is to establish a Central African currency beyond the control of the BEAC that could compete with or displace the legal currency” which he believes would “jeopardize monetary stability”.

The World Bank echoed the sentiment saying:

“It is important that the relevant regional institutions, such as the central bank and the banking authorities, are fully consulted and remain in the driver’s seat.”

Related: ‘We don’t like our money’: The story of the CFA and Bitcoin in Africa

There is a growing dislike of the CFA franc — the official fiat currency of the CAR pegged to the euro in the country. Meanwhile crypto adoption rates have skyrocketed in Africa according to a March report from crypto exchange KuCoin showing crypto transactions increased by over 2,500% in 2021.

It’s unclear what the adoption rate of crypto is within CAR specifically. The country only has an internet penetration rate of just over 7% of the total population according to data from DataReportal dated January 2022 meaning only around 350,000 individuals are even online.

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Report: IMF Says Central African Republic’s Bitcoin Adoption Poses Risks

Report: IMF Says Central African Republic’s Bitcoin Adoption Poses RisksThe International Money Fund (IMF) has added its voice to institutions and parties criticizing the Central African Republic (CAR)’s decision to adopt bitcoin. The IMF insists the adoption poses legal economic challenges not only to the country but to the region as well. CAR’s Bitcoin Adoption Has Financial and Legal Issues The IMF has reportedly […]

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