Bitcoin breaks $21 and El Salvador is one step closer to bitcoin bonds

Bitcoin broke above the level of $ 21 for the first time since November last year - so the cryptocurrency continues its good streak. Late last year, Bitcoin traded below $000 on eToro and is now up 16%. and is just under $300.

Ethereum posted similar gains, trading just above $1 for the first time in two months. ETH started last week below $550, down 1%. profit in just seven days.

Cryptocurrency markets are growing rapidly while traditional stock markets are seeing some recovery. A mix of news, including a slowdown in U.S. inflation, cheered markets up, but this recovery for cryptocurrencies was much more vigorous than for other types of assets.

We are still at an early stage, so investors' caution is justified. Markets have a habit of being pushed aside at times like this, we get bad news every day. Long-term investment cases and time horizons continue to be a fundamental factor in assessing the situation.

Bitcoin mining difficulties reach new all-time highs

Bitcoin mining difficulties set a new all-time high on Sunday, rising 10,26 percent. to 37,73 trillion. This all happened when Bitcoin's hashrate hit a new ATH of 6 on January 6. Generally, the difficulty and hashrate increase due to more competition between miners effectively crowding the network.

A large number of miners and a high level of competition in the network that forces hashrates to increase is basically a good thing. Although it is not correlated with the price, the more miners on the network, the more secure it is.

This is also a common situation during or after bear market episodes where background exploitation and development persists despite price spikes and can be interpreted as a positive long-term indicator.

Miners have had a hard time in recent months as the price of bitcoin has stayed low. However, with the current increases, they may find that their activities become profitable again.

Layer 2 Shiba Inu "Shibarium" blockchain is coming

The development of layer 2 blockchain for the Shiba Inu coin (SHIB) cryptocurrency is coming to fruition thanks to developers. They publish details on how the project works, as well as the upcoming arrival of Shibarium Beta.

The most important aspect of Shibarium is to enable greater scalability and faster transactions for SHIB tokens. It also increases developer use cases such as NFT and providing transaction fees to counter network gas cost spikes.

The introduction of a Layer 2 chain to the cryptocurrency ecosystem could be a controversial development step. This is usually done when the original chain has some issues, such as long transaction times. It requires developers to build another network on top of the original to improve features and performance.

El Salvador one step closer to bitcoin bonds

El Salvador has moved one step closer to offering bitcoin bonds - the so-called volcanic bonds. On Wednesday, the country's congress approved legislation to launch them. The Volcanic Bonds were designed to help El Salvador - one of the first in the world to adopt bitcoin as its official currency - to raise funds to build its so-called. bitcoin city.

President Nayib Bukele, who has been the face of the entire bitcoin venture in the country, wants to build a bitcoin-funded city that is mined using geothermal energy from El Salvador's many volcanoes.

The new rules allow the country to offer digital securities in the form of blockchain sovereign bonds, backed by bitcoin assets the country has accumulated. The Salvadoran Congress has definitively approved the plan, however, we are yet to see these assets for sale in the open market.