Bitcoin Surges Past $50K as Spain Eyes Crypto Development and Argentina Grapples with 'Crypto Caves'
Summary:
Bitcoin (BTC) has surpassed the $50,000 mark for the first time since December 2021 amidst a large-scale market uptick. At the same time, the Spanish city of Torrevieja aims to become Europe's first crypto-friendly city, promoting digital transactions with cryptocurrency. Meanwhile, in Argentina, informal exchanges known as "crypto caves" are offering local residents stablecoins as a way to evade stringent currency controls and the country's severe inflation rate.
Bitcoin (BTC) has once again crossed the $50,000 mark, a feat not achieved since December 2021. This rise in price is occurring at the same time a Spanish city is planning to become the first in Europe to fully embrace cryptocurrency, while in Argentina, unregistered exchanges referred to as "crypto caves" are being used to exchange pesos for stablecoins.
On February 12th, Bitcoin's value soared past $50,000, the most noticeable hike in over two years, owing to a widespread surge in the market. The data provided by Cointelegraph Markets Pro and TradingView highlight the peak of Bitcoin at $50,188, a 4% increase. Prior to the beginning of the crypto winter, the last time Bitcoin was at this level was in December 2021.
Bitcoin's market capitalization consequently rose to $982 billion, placing it among the world's top ten most valuable assets. Even though it still trails behind the Facebook-parent company, Meta by approximately $235 billion, this upswing is a positive development for Bitcoin.
Experts are already speculating that Bitcoin's impending halving will become the next significant market catalyst. With the current production rates, the next quadrennial halving of Bitcoin is anticipated to be in little more than 55 days.
In Europe, the Spanish city of Torrevieja, located in Alicante and home to 82,000 people, has voiced its intention to be the continent's first "crypto-friendly city," encouraging its local stores to accept cryptocurrencies digitally using blockchain technology. This will start by propagating the concept of using cryptocurrencies in commercial transactions.
Torrevieja also plans to rehabilitate her natural spaces and boost tech-sector jobs and financing. Rosario Martínez Chazarra, Local Councilor for Commerce, voiced her expectations that these measures will motivate crypto owners to patronize local businesses. In line with this, the University of Alicante is set to commence digital payment courses for local businesses.
Meanwhile, the inflation-ridden Argentina has seen the rise of “crypto caves,” black-market exchanges that provide U.S. dollar stablecoins to locals looking to evade the nation's strict currency controls and the soaring inflation of the Argentine peso. It is a better deal than the official exchange rates for locals who purchase stablecoins like Tether (USDT).
The crypto caves originated from the "financial caves" that once functioned as money exchanges but went underground following Argentina's imposition of currency controls in the 1980s, and still trade in the "blue dollar," the country's unofficial dollar rate. Despite frequent raids by authorities, these crypto caves remain a haven for locals trying to escape the country's high inflation rate, which skyrocketed to an unprecedented 211.4% in 2023.
Despite expectations that Argentina's currency controls will be lifted under Milei's leadership, the high tax pressure in the country means the black market will continue to prefer operating incognito. Readers are reminded to conduct their due diligence before making any investment decisions.
Published At
2/12/2024 10:53:40 PM
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