Bitcoin recovered 2022 loss
Bitcoin, the biggest cryptocurrency, started the last week of March at the same price as it entered the New Year, meaning it has (at least for now at the time of writing) recovered all the loss and falls in this year. Traders have learned from the past and are approaching Bitcoin very carefully, as the previous attempts to break the price have all gone in vain. Fundamental and technical analysis are all pointing as that this time it could be different, but with volatility present, one can never be too cautious.
Many analysts are warning, that because of the inflation, war in Europe and persistent threat of Covid, stocks and all risk assets – such as cryptocurrency is, are expected to be down in 2022, unless there will be any positive break through in mentioned events. They are adding also that the age of easy earned money is gone, and the only thing that could somehow guarantee continuous growth of Bitcoin is resuming of quantitative easing, which was one of the biggest factors that caused the huge jump in the prices of crypto last year.
Despite all, Bitcoin’s network fundamentals are showing different picture, as its network’s difficulty climbs on the new record highs of approximately 28.67 trillion dollars. The implication of increasing difficulty means, that the mining of Bitcoin was never that competitive as it is now.
Burj Khalifa and Bitcoin
More and more reports are coming from United Arab Emirates, that Emaar, who is the master developer of the world’s tallest building Burj Khalifa, announced that they will accept payment in Bitcoin and Ethereum. Information and news regarding this are not confirmed by the company and they have been floating around since 2019. But now they caught the world and with cryptocurrency being popular as it is, it would be no surprise if Emaar decides for this payment option.
In more supportive way to the company, if they decide so, is also the announcement from Dubai, that they will create a regulating body for cryptocurrencies, which could bring even more interest into coins. The government entity would as such oversee the issuance and trading of crypto, as well as licensing of exchanges.
Rio De Janeiro and Bitcoin
Rio de Janeiro, which is Brasils largest city, will begin accepting Bitcoin payments for taxes on residential and commercial real estate within its borders. As many reports are announcing, the new pro-crypto tax rules will take effect in 2023. Rio will become the first Brazilian city to accept Bitcoin payments, once the project will be fully in motion.
In this regard, also Binance CEO, Changpeng Zhao, announced the opening of a new office in the region in favour of this effort led by Brazilian government. The plan is as follows, that to enable the operation, government will hire companies specialised for converting cryptocurrency assets, because in this way, the City Hall will receive 100% of the amount in the currency. Rio de Janeiro’s goal do not end here. Further, they want to develop a solid market of this new assets in the city and later also try to involve nonfungible tokens (NFT) – based government policies, which would be put across variety of sectors, such as culture, arts, tourism and more.
The news spread fast, and the worlds biggest social media platform has already applied for trademark registration with the city, to design, develop and provision hardware and software for various Bitcoin and crypto-related services.
Movement of Bitcoin in 5 years period. (Source: Trading Economics)
Sources:
https://tradingeconomics.com/btcusd:cur
https://tokeneo.com/rio-de-janeiro-to-adopt-bitcoin-for-real-estate-taxes-from-2023/
https://cointelegraph.com/news/rio-de-janeiro-to-accept-bitcoin-for-real-estate-taxes-from-2023
https://coinquora.com/burj-khalifas-developer-adopts-bitcoin-ethereum-for-payments/
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