Even though the prices of the most popular cryptocurrency, bitcoin, decreased last week, it showed some signs of recovery on Monday. It is believed that some of the most prominent investors of cryptocurrencies invested when the prices were lower. As of four P.M, the value of bitcoin has increased by 6% in the last 24 hours.
According to the data available on the Internet, other cryptocurrencies like ETH and DOGE also experienced higher prices and had a price increase of 7% and 8%, respectively. The main reason behind the increased investment in cryptocurrencies like bitcoin and ETH is too folded.
One among them is a new company that deals in technology and is named as micro strategy, and the other one is acceptance of bitcoins as a legal tender by El Salvador. Also, it is believed that many retail investors purchase cryptocurrencies in large amounts taking advantage of the lower prices. The shares of a cryptocurrency exchange Coinbase Global working at the international level, increased by 5% today.
Consequences
A micro strategy which is a global firm has recently purchased several 2002 bitcoins in recent weeks. However, it bought these BTC between October 1 and November 29. It is the data available on the Internet according to the securities and exchange commission. The value of bitcoins purchased by the micro strategy company is $414 million in total.
Also, after adding the new bitcoins to the collection, the company holds about 1 to 1, 044 bitcoins. On average, the company has paid $29,534 for each bitcoin that it holds now. However, some investors believe that a micro strategy is not a company that should use cryptocurrencies to profit. It is majorly a company dealing in cash for making its business huge. However, this argument is not at all legit because the results show the opposite.
The company has purchased the net cryptocurrencies at a total amount of $3.57 billion. However, the net worth of the digital assets in the market is $7 billion. Before purchasing triple currencies by micro strategy, its total market valuation was not even $3 billion. The new purchases made by micro strategy from the market recently have added up to a profit of rupees $3 billion, which is higher than the company’s total market capitalization last year.
Apart from this, El Salvador has also made a press release that it has purchased a hundred more bitcoins today. Due to this, they had made a considerable profit. Earlier, before making the purchase, the value of bitcoin was $60,000. However, just before the country purchased a hundred bitcoins, the value dropped from $60,000 to $55,000, which allowed it to enjoy the benefit of $3,50,000 flat.
Also, the President of El Salvador told the media that it would use the profit in making the bitcoin city which is the ultimate plan of developing the country. With the new plan of bitcoin city, the country will be on the verge of development, and it will get a lot of incredible benefits that other nations should also follow.
El Salvador does not have to disclose its holding over bitcoins because it is not a public company. However, it is believed that it might be holding more than 1200 bitcoins in its treasury, which clearly shows that it has not sold its bitcoin for a very long period.
Also, it will be a massive benefit for the country because bitcoin prices are intended to rise in the future, which is going to boost the economy. You can read more on http:/btc-loophole.io.
Bitcoin has been the ultimate plan of developing the country for the President of El Salvador. He has not been selling any cryptocurrencies since the way they started to purchase. However, he holds highly bullish views regarding bitcoin and says it will form the future for every country. Therefore, it is also looking forward to building a bitcoin city where bitcoin will be the ultimate medium of making a change.
As bitcoin influences all the coins in the market, the other cryptocurrencies also have a cheerful face. Along with bitcoin, other popular cryptocurrencies like ETH and DOGE have increased their market value today. Their value increased by 7% and 8%, respectively, which was an excellent rate of development for both coins. They are also expected to overtake bitcoin in the future but not soon.
However, El Salvador favours bitcoin and will surely follow bitcoin for the next few years. As soon as the bitcoin starts to fail, the bitcoin city plan of El Salvador will also collapse, and the country will go back to where it started.
