The bitcoin (BTC) price has been quite dull these past couple of weeks. But don’t be mistaken, the bitcoin mining industry is still very much booming. With the hash rate dropping a bit due to Chinese miners stopping their operations, also beginners get an excellent chance to mine bitcoin. But this week was positive for bitcoin miners for another reason.
Central American country accepts bitcoin as legal tender
During the Bitcoin 2021 conference in Miami, the president of El Salvador dropped somewhat of a bombshell. He suddenly announced that he would send a proposal to the parliament to make bitcoin legal tender in the country. At that point, the American dollar was the only official currency of the country. The parliament has, however, accepted bitcoin as the second official currency! Big news for Bitcoin, its miners, but mainly El Salvador, of course.
Why for miners? Because Bitcoin is slowly gaining momentum in the world economy. Politicians worry about what implications bitcoin can have on the role of the American dollar and other centralized currencies. These worries can only be interpreted as bitcoin indeed gaining ground. The decision of El Salvador puts bitcoin next to the American dollar and further underlines the importance of Bitcoin in economies.
70% of the El Salvadorians have no access to traditional financial services, and its citizens rely heavily on remittances from abroad. A large chunk of those remittances is lost due to intermediaries taking a cut for facilitating these international transactions. Bitcoin can, of course, do that better, faster, and cheaper. “It will bring financial inclusion, investment, tourism, innovation, and economic development for our country,” Nayib Bukele said on Twitter.
Finally some good news after weeks of FUD
In the past weeks, we saw quite some fear, uncertainty, and doubt (FUD). Three events caused panic. Firstly, Tesla CEO Elon Musk decided that the company will no longer accept bitcoin as a payment method for their cars. The second news item that caused panic was China banning cryptocurrencies, again. China namely already had a ban on initial coin offerings (ICOs) and exchanges in place. Read more about the FUD in this article.
The news that bitcoin is now legal tender in El Salvador was the positivity we all needed. What are the possible implications of this news? Well, for starters, if Bitcoin does indeed bring more inclusivity and economic growth, other countries will surely follow the example. More demand for bitcoin means a higher bitcoin price. Bitcoin miners are, of course, an essential part of Bitcoin and thus will profit significantly from this revolution.
With bitcoin reaching high prices at the beginning of this year, you may feel like you missed the boat. But with these recent developments, there are still plenty of chances to grab. Check out our web store with ASIC miners to start mining bitcoin. Also, see our Mining Hosting Service for easy and accessible bitcoin mining without the hassle of managing an operation yourself!