Today we are witnessing another historical day when we check the Crypto timeline. The presidents of El-Salvador and Turkey came together and the president of El-Salvador posted a Tweet saying that "hi from the capital of Bitcoin, a.k.a El-Salvador". I think he wants to make a warm introduction for his purposeful trip but also he reveals messages that they will have important negotiations over the future of #Bitcoin as a reserve money.
Apart from that news El-Salvador proposed a low interest Bitcoin loan for small businesses in the country. Even if the scale of the proposal may not bring up huge impact on the price of Bitcoin, the integration of Bitcoin products into old school economies sounds exciting. Assuming that the loans are approved, that will give birth to more productive services that require Bitcoin transaction in exchange of a fiat currency.
Bitcoin Loans -> Risk of Generating Paper BTC?
What is problematic about precious metals is obviously the paper form of them which is manipulated by some parties in the markets. When we talk about the suppy of the precious metals, they are really scare in the nature. However, the paper forms are traded, shorted and longed or used in futures as the market wishes. Personally, I'm scared of seeing Bitcoin paper forms being traded apart from real Bitcoin.
In this situation, I believe the price will be prone to manipulations since this can be one of the easiest way that Bitcoin is being tamed (!). In terms of the use of cryptocurrencies, it is not a surprising idea from the governments.
Not in DAO; Hard to Trust
If people are expect to trust the existing banking system and financial products, I'm not going to make such a mistake that may require my cryptocurrencies being kept by the banking system.
Now that the loans can be backed by Bitcoin, then every single transaction can be adopted to De-Fi to serve flawlessly. Without De-Fi solutions, it would be an insult to this evolutionary technology behind the crypto assets.
The Dark Side, Full-Scale Ban
It was the sad news that made the market even more depressed. To be honest, I do not think that Russia would ban all operations of crypto industry since we already know that WAVES devs and some other project developers made some meetings with the government over the development of crypto ecosystem.
Moreover, Russia is one of the countries that has mutual blockchain based cryptocurrency development deal with a couple of countries. Knowing all these things from past experience, I do not think that it will have an important impact on the crypto service providers in Russia or the crypto market will be affected in terms of the price actions.
TL;DR Good News or Bad News, Crypto Becomes a Fact ™
Within a day we witnessed interesting cases for crypto ecosystem. While the role El-Salvador plays to enhance Bitcoin standard for the countries is open to discussion, we are seeing the positive atmosphere created by people with such meetings. On the other hand, it looks like Nayib Bukele wants to become a role model for new generations with his courageous actions. Bitcoin loans can be positive for the sake of BTC but I can only accept its positive effects Only when the loans are operated in De-Fi without the middleman bankers.
For the bad news, I do not think it is needed to be taken serious while governments are seeking ways to utilize liquidity in the crypto ecosystem with massive potentials. I'm sure we will see the proposal is reject news when the market turns into green within the year. In bearish times, FUD can often happen 💁🏼♂️
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