Even though the bitcoin experiences fluctuations in its prices, it is necessary for the investors. If any investor wants to make huge profits in the cryptocurrency market, he has to deal with bitcoin because of its fluctuations. The fluctuations in the prices of bitcoins provide the investor with opportunities and risks of dealing in cryptocurrencies. Many countries are leaders of the globe, but they still do not accept the decentralized method of making transactions. Many countries are still not allowing cryptocurrencies into their financial system because of their threat to the financial system. On the contrary, El Salvador, one of the two most developing nations globally, has accepted Bitcoin into its financial system. It has announced that bitcoin will be a legal tender in the currency and announced setting up a bitcoin city in the country, you can invest in bitcoins by visiting crypto engine system
First of all, the President decided to make bitcoin a legal tender, and then he announced building a bitcoin city in the country. Also, as a foundation of the bitcoin city, it will issue bitcoin bad bonds that people can purchase so that a massive amount of money can fund the bitcoin city. It is the first project funded by cryptocurrencies in the whole world and also, El Salvador is the first currency to accept bitcoin as a legal tender. Also, 2021 is coming to an end, and still, bitcoin investors cannot find them in a safe place. For those investing in cryptocurrencies for a sure duration, bitcoin is not free of controversies. Also, many governments from different countries are looking forward to imposing restrictions and regulations on cryptocurrencies, making trading a more arduous task. In 2021, bitcoin prices hit their all-time highest and also experienced a 50% contraction. Fortunately, triple currency investors have got to experience a bitcoin price of US$68,000 after the debut of Bitcoin ETF in November.
After such a massive fluctuation in the cryptocurrency market in 2021, it is expected that many prominent players will enter the market. Also, it was seen that many large investors in the cryptocurrency market or purchase bitcoins at a considerable price. It is done to control the movement of prices in the cryptocurrency market. They won’t get cryptocurrency bitcoin prices to increase, and to do so, they want to decrease the supply of a bitcoin. They are doing it through massive purchases, and cryptocurrency storage is in the cold storage wallets. Looking at the perfect cryptocurrency, the President of El Salvador decided to provide it with the status of legal tender inside the country’s geographical boundaries. Therefore, it will be included in the country’s financial system and support the already existing ecosystem.
The idea of creating a bitcoin city came out just right after the announcement made for making bitcoin a legal tender. The bitcoin city is going to be built in the eastern region of La Union. The main reason behind taking up bitcoin as a legal tender is nothing else but the ever-increasing deflation. Some economies across the globe, like El Salvador, are experiencing a very great downfall in the value of the currency. Due to this, their financial ecosystem is about to collapse completely. However, bitcoin is a very volatile digital asset and therefore, it has the opportunity to provide a second chance to such economies of the world. Therefore, the President of El Salvador decided to make it a legal tender to help handle the country’s deflection curve.
The bitcoin city that El Salvador is going to get is situated close to a volcano. The volcano, located near the bitcoin city, will provide power to the city. In addition, it will get Jio thermal power from the volcano, which will help in cryptocurrency mining and further transactions. Also, the bitcoin city aims at keeping the carbon emissions as low as possible so that they do not contribute to the already devastated global environment.
Many countries of the globe are suffering from poverty nowadays. Therefore, the main reason behind adopting cryptocurrencies as a legal tender is not only for not missing out on the train. It can help such countries to tackle the effect of poverty and inflation. Also, it can be used by many developed relations like the United States of America and European Union countries so that they can take its advantage before it’s too late.