History
Daily Ramble
Whoa! I was a bit blown away by the number of responses I received on the request for feedback yesterday. A good 10% of you took the time to let me know your thoughts — and then some. So not only did I get insights on Kent’s Corner, but I got to learn a bit about how many of you arrived to be readers.
I found the feedback interesting enough that I wanted to share a few tidbits. Surprisingly, the most frequent comment was a willingness to pay a small fee for reading the newsletter — especially if it included more crypto content. Beyond that, most found the newsletter too frequent and struggled to keep up with the content. Finally, interesting comments were requesting more about plant medicine, life abroad, and being a parent. I’m going to stew on all of this over the weekend before making any decisions.
But enough of feedback on feedback, yesterday was a historic day. El Salvador turned Bitcoin into legal tender. While I can nitpick that making Bitcoin legal tender was forced on the populace by legislation rather than being freely chosen by the citizens, I’m not going to. Bitcoin cannot be controlled by El Salvador any more than China could control it. The government may play games around Bitcoin’s transition into and out of USD through Chivo, the government-provided application available for all citizens to accept Bitcoin, they cannot stop other applications competing with Chivo. The free market will ultimately deliver El Salvadorian citizens the best method for using Bitcoin.
Despite negative news in the Western press about the launch, the news on the ground was incredibly positive.
To kickstart adoption, the El Salvadorian government offered $30 in free Bitcoin to all citizens who downloaded Chivo. The incentive clearly worked as lines like the above showed users keen to cash in on the transition. Whether they sell, use, or hold the Bitcoin they freely received, the incentive is sure to shift how the citizens view Bitcoin.
And El Salvador is not the only country shifting its stance on Bitcoin in a favorable way. Gradually, then suddenly, Bitcoin is being adopted globally. If you don’t understand why, I encourage a trip to any of these locations to understand. Bitcoin’s adoption is just a matter of time….those who “get it” soonest are reaping the greatest rewards on the transformation it is ushering in.
Awesome Things on the Interwebs
Bitcoin Price Prediction
Yesterday: $42.7k - $53k
Today: $44.4k - $47.4k
Tomorrow: $42.8k - $49k
After such a massive move, seeing Bitcoin’s price consolidate in a relatively tight range between $44k and $47k is to be expected. I continue to believe we see the next push take us to $49k before a real decision is made by the market. Should we fail to recover $49k, it will likely lead to at least a retest of the $42k lows set yesterday. A recovery of $49k, on the other hand, will likely lead to a strong push back into the $50ks. We may get a couple more days of consolidation before a decision is made, but time is on the bulls’ side as they try to exhaust the sellers.
Bitcoin Q & A
Q: How many bitcoin did El Salvador purchase when it became legal tender yesterday?
A: 550.
Despite the $10k price dip yesterday, the President of El Salvador, Nayib Bukele, purchased 550 bitcoin to service his country’s needs. In the process, he also mocked the IMF, which issued stern warnings against El Salvador’s intention to allow Bitcoin to become legal tender. Is there historical precedence for a sitting president mocking the IMF?
Do you have questions or a “Rad Thing on the Interwebs”? Leave a comment or reply to the newsletter to reach me.
Me? I offer personal and corporate Bitcoin Implementation Strategies: custody, investing strategy, security, tax management, and inheritance. Contact me for a free initial consultation.