Although there are numerous cryptocurrencies on the market, it is hard to ignore Bitcoin. It has become the leader of the pack. Other cryptocurrencies pale in comparison although they’re growing rapidly as well. In recent weeks, there has been big news regarding the king of cryptocurrency. The news will likely impact Bitcoin’s price and its future. It is vital to learn more about this since Bitcoin could soon play a role in everyday life in America and abroad. Below, readers will learn more about the latest Bitcoin news.
El Salvador Adoption
Earlier this month, El Salvador adopted Bitcoin as a legal tender. Although many thought it would be a good thing for Bitcoin, it hasn’t been. In fact, it has caused the price of Bitcoin to tumble. Even worse is the fact that it has led to negative implications for El Salvador’s credit rating. S&P Global laid out the biggest risks associated with Bitcoin in El Salvador. For instance, it would increase fiscal vulnerabilities and negatively impact banks by establishing currency mismatches when offering loans. The agency went on to say that the benefits of the move were outweighed by the risks. The county’s credit rating has been lowered to one notch below B-.
Suffice to say, the adoption of Bitcoin may not provide the impact El Salvador authorities were hoping for.
AMC Accepting Cryptos
In recent years, many businesses have started accepting cryptocurrencies. It is common to find a kaszinó that does. However, it is not common to find theaters that accept the biggest cryptocurrencies in the world. The industry changed this week when AMC confirmed it would begin accepting cryptocurrencies for online movie ticket and concession purchases. AMC’s CEO Adam Aron confirmed that the company was planning to accept Bitcoin Cash, Ethereum, and Litecoin for concession purchases and online ticket purchases. During the company’s second-quarter earnings call, Aron said the company would accept Bitcoin for online purchases by the end of the year.
Although AMC named a handful of cryptocurrencies it would accept, it did not add Dogecoin to the list. Besides Cryptocurrencies, consumers can also pay using Google Pay and Apple Pay. Shares of AMC have climbed by as much as 2,200% in the past few years.
Regulators Will Kill Bitcoin
Bitcoin is indeed growing in popularity. Soon, it may receive worldwide, mainstream acceptance. However, that might not be a good thing for the cryptocurrency or its holders. During the past 12 months, the price of Bitcoin has quadrupled. There is a good chance that it’ll soar even higher in the coming months. However, Found of Bridgewater Associates, Ray Dalio, is worried that Bitcoin will be killed if it gets too big. This week, the billionaire claimed regulators would kill bitcoin if it ever got too big.
He went on to say, “And I think they will kill it because they have ways of killing it.” In June, the cryptocurrency was officially recognized as legal tender by El Salvador. Dalio isn’t the only hedge-fund king to speak out against Bitcoin. John Paulson recently said he believes cryptocurrencies will go bust at some point. Nevertheless, a lot of people believe in Bitcoin and bet on it.
Bitcoin Possibly Facing New Rules
In the United States, lawmakers have been working hard to find a way to control Bitcoin. It hasn’t been easy since the cryptocurrency was created to circumvent them. Bitcoin has changed a lot over the years. Today, it can be purchased using certain money services, including Cash App, Venmo, and Robinhood. After the 2008 financial crisis, many believe Bitcoin would be a viable alternative to fiat currency. Since the cryptocurrency has become more popular, it has caught the attention of lawmakers in Washington. Senate nearly passed nearly laws earlier this year that would’ve required crypto brokers to report tax information to the IRS. Before the infrastructure spending package was passed, the provision was removed.
Members of Congress and SEC chair Gary Gensler have said they’ve like to see new regulations placed on cryptocurrencies. Earlier this month, the SEC threatened to sue Coinbase when it was going to launch a crypto-lending platform. The SEC claimed Coinbase was trafficking in unregulated securities. Suffice to say, Coinbase canceled the idea immediately. New regulations are likely coming to Bitcoin and it could flip the cryptocurrency on its head.