Crypto Scoop: Bitcoin Bounces Back, Closing in on $50,000

Here are the highlights of this week's crypto scoop:

• Bitcoin bounces back, closing in on $50,000
• El Salvador struggles with bitcoin adoption bill
• Cuba's cryptocurrency regulations take effect

Bitcoin Bounces back, closing in on $50,000

In the last few days, the price of bitcoin went below the $50,000 benchmark, going as low as $44,000. As the red streak set in, the question on everyone's mind was this "Has the bearish tide returned once more?" Prior to August, Bitcoin and several other cryptocurrencies had been on a bearish run since BTC reached an ATH of $64,000, which had its price sinking below $30K. However, in August, the bearish tide changed into a bullish one, and bitcoin was able to rise above $50,000. There were even speculations that bitcoin would soon be reaching its previous ATH and possibly a new one.

However, during the past week, the bitcoin's price experienced a downward decline which rose speculations that the bearish tide had returned. Yet, bitcoin was able to pick up the pace and soon bounced back, closing in on $50,000. Bitcoin isn't the only cryptocurrency to come bouncing back as Ethereum's hash rate soared to a new ATH. Ethereum mining had received a lot of crackdowns, especially from China. However, it seems it is finally back on its fit as it soared to a new ATH of 715.4 TH/s, according to Etherscan.  

Read also: Is It Too Late To Buy Bitcoin?

El Salvador struggles with its bitcoin adoption bill

El Salvador announced its intention to adopt bitcoin as a legal tender in July. The adoption of bitcoin as a legal tender came into full effect on the 7th of September. In order to ease the transition to bitcoin, the government set up a bitcoin trust fund of $150 million. El Salvador government also liaised with Bitso, a major crypto exchange, to be the core crypto service provider for El Salvador's official Bitcoin wallet, Chivo.

Since then, El Salvador has been in the spotlight with crypto enthusiasts curious to see if it would succeed with its crypto adoption bill or not. Although citizens expressed concerns about the technical issues in the operations of Chivo, it still came as a shock when protesters took to the streets. Protesters took to the streets to protest against the recent bill while vandalizing one of the Chivo machines. The Chivo machine was defaced with anti-logos and a sign saying "Democracy is not for sale." Videos later surfaced with a Chivo-supported kiosk burning in the street. It was reported that damage was limited to the Chivo machine, similar to a bitcoin ATM. However, there have been reports that furniture of the plaza Gerardo where the Chivo machine was placed was also burnt. The Chivo kiosk is one of the roughly 200 machines the government had put in place to ease crypto adoption.

President Bukele explained that although bitcoin was a legal tender, persons who failed to accept or use the cryptocurrency wouldn't be sanctioned; the protesters insist that the bitcoin bill is tyrannical in nature. The protesters, who referred to themselves as the popular resistance and rebellion Block, had earlier taken to the streets to express their displeasure about the bill. The arrest and release of Mario Gomez, crypto expert and an avid critic of the government, one of the protesters, has also raised controversies. The world waits in anticipation as they curiously watch to see how the El Salvador government would handle the backlash from its citizens.

Cuba's cryptocurrency regulations take effect

Cuba's recent cryptocurrency regulations set to promote crypto adoption has come into full effect. Cuba's central bank now recognizes cryptocurrencies like bitcoin as a legal method of payment for commercial transactions and investments in the nation. Prensa Latina, Cuba's official state news agency, announced that the regulations had come into full effect.

The Cuban central bank also noted the risks associated with cryptocurrencies in the nation. It explained the risks of bad actors taking advantage of cryptocurrencies and using them for illicit transactions. However, the crypto regulation would assist the nation in processing remittance from overseas regardless of the United States embargo. Cubans have before the crypto regulations openly accepted cryptocurrencies because it poses a better alternative to access financial services. It is expected that the crypto regulations would bring increased financial growth to the nation's economy.

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