Wow, crypto makes you schizophrenic doesn’t it? In my last article I wrote that I saw 2019 as the year of building and not the year of investors. I stand by that, but could it be so that the building and adoption takes off in such a tempo that it is inevitable that also investors are rewarded greatly?
Venezuela Approving Bitcoin as Legal Tender?**
First of all – what is legal tender? Legal tender is a medium of payment recognised by a legal system to be valid for meeting a financial obligation. Bitcoin is usually not legal tender in any country at this point. It is not an ILLEGAL currency, but not legal tender.
Basically the Venezuelean government has started offering cryptocurrency remittances services for BTC and LTC..Bitcoin.com reports
The Superintendency of Cryptoassets and Related Activities (Sunacrip), the main regulator of all crypto activities in Venezuela, announced the launch of the service on its Patria platform last week. According to its website:
The cryptocurrencies that can be used to send [remittances] are bitcoin and litecoin.
First of all, this strikes me as one last desperate attempt by the socialist government to do one last money grab before they ascend into complete anarchy. Inflation last year was close to 1M% , and their “cryptocurrency” or digital fiat currency rather failed in less than a year. Venezuela has crypto adoption like no other, and you have probably been approached by desperate Venezuelans begging for crypto-money on Discord and Telegram (which is understandable, considering their situation) And as crypto adoption grows, the government can’t really do much than to try and tax it as much as they can – in in this case they are trying to serve as middlemen (third party) to make money off of fees. If people don’t all ready know, obviously Bitcoin was created to bypass middle men. So for how long this will create revenues for the government is unknown.
On the other hand, allowing for remittances allows for money flowing in and out of the country (mainly in, in this case) which should help boost the economy.
Either way, it is very very interesting. Mindblowingly interesting in my opinion. Here we have a world where the richer part of the world is looking to a third world country in utter crisis cheering on their path to freedom and escape from corrupt totalitarian regimes, because it will also benefit our investment and progress. That is how a free market boosts everyones current situation.
We know that if people were to control their own currency their economy will turn around for the better. Not saying that Venezuela will become Japan or Germany in terms of wealth, but if Bitcoin and Crypto can lead to a positive development other countries will follow. Venezuela is a country with 33 million people, so it is not insignificant.
Did This Cause Crypto to do a 180?
I’m no chartist, but it seems like we had a significant breakout to the upside and that we have good support in the 3700 area for Bitcoin looking at the daily chart. Looks like we are moving into some sort of wedge sometime this month, and I think we will get a huge breakout to either side. If we see a massive move up, maybe that means we are out of the bear market?
Starbucks Will Accept Bitcoin Soon!
Or will they? Not really. They will allow for swapping any cryptocurrency it receives for Fiat. A lot of articles like this one from “the next web” says that
It will, instead – and as expected – swap any cryptocurrency it receives for fiat, churning the funds back into the capitalist machine that most hardcore cryptocurrency enthusiasts vehemently oppose.
First of all, lol..most crypto enthusiasts ARE capitalist, so the only thing they are concerned about with Starbucks is their ridiculous political agenda, where they refuse to serve Trump supporters etc. They also go ahead and state:
Alas, if you were hoping this would mean the beginning of something beautiful for cryptocurrencies such as Bitcoin, think again. Under a more critical light, this is just a frustrating reminder that handling Bitcoin directly is still too taboo (and a little too “inefficient”) for the world’s biggest merchants to handle, all the while early-adopting, small merchants are still waiting for someone to use it.
We know that this does not mean that Starbucks is not directly accepting Bitcoin. But what it also means is that it is one important step in the adoption. Last year with its one trillion articles in the mainstream media with articles regarding an investment class that barely 0,1% of the world population is invested in made it sound and feel like we were “blowing up” when we in fact were not. It was a little bit like playing Pong and talking about how in one year we would all be playing massive online MMORPG’s with VR glasses. Just, calm down..this takes some time. To change the worlds financial system takes a little bit more than a few years.
So, no we are not dropping to our knees in awe over this news, but it is one of many small and important step on our way to mass adoption that we are seeing these days.
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