Bitcoin to become the official currency of three more countries?

Panama, Honduras i Guatelamala are three more countries in which - after El Salvador - Bitcoin (BTC) it may become not only legal, but also official, state tender. In the background, there are also new ideas for the use of renewable energy to handle transactions and mine cryptocurrencies. Among them is… energy from volcanoes!

The cryptocurrency market has recently experienced a deep correction. Some even say it's a bear market. Bitcoin's price has dropped below 42. USD, which seemed to be a strong support before. However, it broke after another, sixth consecutive downward session. Now analysts believe that the next zone of defense for bulls is around 39-573 USD. 

All because of riots in Kazakhstan and disabling Internet access. In the streets of this country, there are regular battles between the inhabitants and the police and the army. There are also Russian soldiers who were called in on a "peacekeeping mission," which enraged the protesters even more. 

The protests started on January 2, after fuel prices were increased abruptly. Opposition politicians immediately felt their chance and led people out onto the street. There were clashes with the services, including the armed ones. There are already at least several dozen victims, so it was quickly decided to disable Internet access to thwart the ranks of the rebellion. But by the way, it had an impact on the global cryptocurrency market, because that's exactly what Most of the Bitcoin mines have moved to Kazakhstanafter the law slandering them was introduced by force in China. It is estimated that after disconnecting the Internet in Kazakhstan, the global BTC computing power has decreased by as much as 15% and it's not that easy to stay anymore Bitcoin Millionaire.

Three countries to introduce Bitcoin?

However, the temporary troubles on the network do not change the broader view of the future of cryptocurrencies. Nigel Green, CEO of Devere Group, a company dealing not only with financial advisory but also with asset management, is convinced that Bitcoin will be a legal tender in three more countries this year.

- “Young, independent president Nayib Bukele [President of El Salvador, who was the first to recognize BTC as the official state currency - ed. Ed.] is right when it comes to adopting Bitcoin as legal tender in 2022 by other countries. I believe that three more nations will follow El Salvador's pioneering, forward-looking entry into the digital age. This is because low-income countries have long suffered because their currencies are weak and extremely vulnerable to market movements, which causes rampant inflation " Nigel Green points out.

By adopting the world's largest cryptocurrency as an official tender, poorer countries get rid of many problems right away. It will not weaken due to the economic problems in this country, and besides, it allows for easier foreign exchange, which always helps in overcoming the crisis.

The three countries that will take this step are Panama, Guatemala and Honduras, according to Nigel Green.

Be sure to read: Bitcoin becomes the official currency of El Salvador

Bitcoin thanks to energy from volcanoes

By the way, there was also a new idea for low-cost and environmentally friendly handling of cryptocurrency transactions and the extraction of new tokens. The solution may be ... energy from volcanoes. This is the idea of ​​Salvadoran President Nayib Bukele.

However, the geothermal power plant in the volcanoes has been criticized by Steve Hanke, a professor of applied economics at Johns Hopkins University. He even ridiculed the project, claiming that Bitcoin City was as prepared as Florida for snow, mocking that it was to be built on an inactive volcano.

The President of El Salvador partially confirmed his allegations, admitting that the volcano is inactive. Which, however, is neither a mistake nor an inept manipulation. 

- “Geothermal energy comes from boreholes made near inactive volcanoes. Really someone thought we were going to build a city under an active volcano? The professor thought so? " - the President of El Salvador asks rhetorically.