Bitcoin and cryptocurrencies took off this year, and Bitcoin is now held by Elon Musk’s Tesla and adopted by El Salvador as the national currency.
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After a sharp sellout earlier this week, Bitcoin prices have recovered some of their losses. It surged to $ 60,000 per Bitcoin, helping the wider crypto market recover. Bitcoin prices have risen 200% since this time last year, pushing the combined market capitalization of cryptocurrencies to about $ 3 trillion.
Former U.S. President Hillary Clinton, now hopefully under President Barack Obama, warns that the rise of Bitcoin and cryptocurrencies could undermine the status of the US dollar’s reserve currency. I am.
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“What appears to be a very interesting and somewhat exotic effort to literally mine and trade new coins weakens the currency, weakens the dollar’s role as a reserve currency, destabilizes the country, and You could probably start in a small country, but it will be much larger. ” Bloomberg A new economic forum in Singapore, and she added, “it is the rise of cryptocurrencies that nation-states begin to pay more attention to.”
Clinton, whose 2016 presidential election was hurt by hacking, also accused Russian President Vladimir Putin of deploying “a very large hacker’s shack and people dealing with disinformation and cyberwarfare.”
According to recent Chainalysis data, North America is the world’s largest victim of crypto-based ransomware attacks, with hackers paying criminals $ 131 million in cryptocurrencies in 12 months. increase. Most of the attacks turned out to be from Russian-based gangsters.
Following Clinton’s comment, El Salvador’s President Nayib Bukele announced plans to build a “Bitcoin City” initially funded by Bitcoin-backed bonds.
In September, El Salvador became the world’s first country to officially adopt Bitcoin as legal tender and is now used as the national currency along with the US dollar. Other countries in the region are considering following in the footsteps of El Salvador. Earlier this month, Zimbabwe was reported to be seeking to adopt cryptocurrencies as a payment method.
“This will make El Salvador the world’s financial center,” said Samson Mow, chief strategy officer for blockstream technology provider Blockstream, at an event to conclude the week-long promotion of Bitcoin in El Salvador. I talked with you.
News of plans for the Bitcoin city in El Salvador, designed to facilitate investment in the country, helped Bitcoin prices rise after a turbulent week.
Bitcoin prices fell 20% until mid-November, hitting a record high of about $ 69,000 before a closely monitored Bitcoin upgrade was rolled out, to a low of about $ 55,000 per Bitcoin. It went down.
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Countries around the world are already working on ways to curb the bright red Bitcoin and crypto markets.
In the United States, President Joe Biden signed a huge infrastructure bill this week, including stringent new tax reporting requirements for Bitcoin and crypto companies. After 2023, brokers will need to hand over customer names, addresses, phone numbers, capital gains, and losses to the Internal Revenue Service, and companies receiving crypto payments in excess of $ 10,000 will need to report the sender’s identity to the government. there is.
Earlier this week, Indian Prime Minister Narendra Modi called on countries to work together to prevent cryptocurrencies from “getting into the hands of malicious people.”
According to local media reports, India will ban the use of Bitcoin and cryptocurrencies for payments, but will allow digital assets to be held and traded in a manner similar to stocks and bonds.
The comprehensive ban on Bitcoin and cryptocurrencies in China has been partially criticized for the devastating Bitcoin prices and the plunge in the crypto market earlier this year.