Both the capital increase and other income will receive any charge in taxes. Bitcoin has awakened the interest of various foreign companies in the field. This interest would bring many benefits to the country.

The Government of El Salvador has decided to free foreign investors from paying taxes on their earnings in bitcoin (BTC). The cryptocurrency already became legal tender in that country on September 7.

Javier Argueta, legal adviser to President, Nayib Bukele confirmed the situation to the AFP news agency, according to the France24 medium. The advisor explained that If a person owns assets in bitcoin and manages to make a profit, 0 taxes will be applied.

In this way, both the capital increase and the income obtained from holding the cryptocurrency will not be affected by any tax. The first goal of the administration, headed by Bukele, is to attract investment from other countries to boost their economy.

Bitcoin and its First Steps in El Salvador

The crypto community has high expectations regarding the adoption of bitcoin as a legal currency in El Salvador.

This recognition of the cryptocurrency (the first official worldwide) generated interest from many foreign individuals and companies, which are even starting to realize how to take their operations to the Central American country.

A clear example of this whole trend is the Argentine company Lemon, which will facilitate the acceptance of cryptocurrencies for Salvadoran financial entities, as its CEO announced to this medium.

On the other hand, the Mexican cryptocurrency exchange Bitso reported they would play a role as one of the first providers of Chivo Wallet, the state-owned bitcoin wallet.

Big Companies are Joining the Crusade

Finally, the fact that multinationals such as Pizza Hut and McDonald’s already accept payments with that cryptocurrency in the country has attracted alarming attention in media all over the globe.

OpenNode also revealed the alliance between them as the provider of payments in bitcoin and McDonald’s, indicating that, throughout the country, these restaurants would be receiving payments via Lightning as of today. The franchise has just over 20 stores nationwide.

This union came to terms because the confirmations of on-chain transactions take too long and do not keep up with the rhythm of McDonald’s. With a network like Lightning, these payments happen instantaneously and do not represent an obstacle for regular customer order fulfillment.

This boom and the tax benefits revealed the strategy of Nayib Bukele to boost his national economy by encouraging the adoption of bitcoin by the Salvadoran population and investors who may arrive in the country.

Many businesses will be providing their services in El Salvador, from digital wallets and mobile payment operators, insurance companies, and relevant retail merchants in the country, through fast-food restaurants and industrial firms.

By: Jenson Nuñez

The supermarket giant revealed on Monday that the entity would start accepting payments with Litecoin from October 1. The claim ended up being a false statement.

Walmart, the multinational corporation that runs the largest supermarket stores in the United States of America, is not taking a step toward adopting cryptocurrencies, despite the rumors that appeared through various media outlets.

According to a statement on Monday, the number one retailer in the United States of America reported that it would start accepting Litecoin (LTC) payments early next October. However, a spokesperson for the firm told CNBC that the statement was a false alarm.

Previous information stated that the initiative was the product of a partnership with the Litecoin Foundation, the organization in charge of promoting the adoption of such a cryptocurrency.

Also, the millions of Walmart customers around the world could, for the first time, take advantage of a cryptocurrency to purchase food and products in the supermarket chain.

The statement also shows that the email address used was not an official channel of Walmart, according to Decrypt. On the other hand, the bogus note cited alleged statements by Walmart CEO Doug McMillon.

Walmart Denies Adoption of Litecoin

The false news represented one of the most relevant cryptocurrency adoption announcements in these times, considering the presence that Walmart enjoys internationally.

The US retailer had already raised speculation about possible crypto adoption in August. It occurred after posting a job vacancy for a leading cryptocurrency expert.

The announcement about the integration of Litecoin was not a surprise after the previous rumors. Although various members of the community expressed concern due to the particular choice of that currency instead of Bitcoin or Ethereum, which are usually the most adopted due to their recognition in the market.

The media have been denying, correcting, and upgrading their publications regarding the false adoption of LTC by Walmart.

CNBC acquired confirmation from a Walmart representative that the press release was false. The authorities initiated operations to investigate, with GlobeNewsWire, the possible ways on how this post could have reached the internet.

However, the user account that released the note on GlobeNewsWire is not official from Walmart. The web domain (walmart-corp.com) does not take part in the company as corporate.walmart.com does.

On the other hand, in the official Walmart press room, there is a statement where Walmart assures that the information is false and there are zero relationships with Litecoin.

US Department of Justice is Investigating

According to businesswoman and bitcoin enthusiast, Caitlin Long, the US Securities and Exchange Commission (SEC) would not be the one who would investigate this episode of alleged market manipulation.

The Department of Justice (DOJ) Federal would already be requesting information from exchanges about who has exchanged LTC during the period of volatility.

By: Jenson Nuñez

The nations Bitcoin would benefit the most would include Cuba, Paraguay, Brazil, and Costa Rica. The Cuban population has the highest average in the region for sending money home.

Steve Hanke has proved to be one of the most zealous critics of the Bitcoin Law of El Salvador. The American economist disapproves of President Nayib Bukele’s plan of adopting the crypto asset as legal tender.

For the Johns Hopkins University professor, the high costs of remittance transactions do not present any problem for Salvadorans. Data from the World Bank indicate that the fees for remittances from the Central American country are the lowest in Latin America and the Caribbean.

According to a graph Hanke shared, the average cost of sending remittances to El Salvador is lower than in 18 countries in Latin America and the Caribbean. The applied economics professor added that that number is contrary to what Nayib Bukele wants people to believe.

The President of El Salvador spoke about the ease and low cost of sending Bitcoin remittances to the country. He said Salvadorans would save USD 400 million annually by sending remittances in the cryptocurrency instead of the US dollar.

However, Hanke believes that the Bitcoin Law of El Salvador will provide unlimited funding for Bukele’s government plans. He also considers the regulation as unnecessary, whimsical, and very unpopular.

Sending Remittances in Bitcoin Would Benefit Cuba and Paraguay, among other Countries

The graph Hanke shared shows a cost of sending remittances to El Salvador lower than that of 18 countries in Latin America and the Caribbean. That diagram also reveals that those nations can take more advantage of Bitcoin than the Salvadoran territory.

In 2020, Cubans, Paraguayans, Brazilians, and Costa Ricans spent between 6.60% and 10.53% on fees. According to the economist’s calculations, those are the highest averages in the region for sending money.

Peru, Bolivia, the Dominican Republic, and Colombia are among the 16 nations with an average fee expense above 4%. The costs for sending remittances are lower only in El Salvador, Guatemala, and Panama.

In both Cuba and El Salvador, the primary source of income for citizens is remittances. They arise as a result of the efforts of many expatriates to send money to help their relatives meet basic needs.

Making cross-border transfers is faster and cheaper and does not require resorting to high-cost traditional services. However, the widespread use and adoption of Bitcoin in these countries could face technological barriers.

Contrary to what Hanke stated, the Bank of America believes the adoption of Bitcoin will bring four advantages to El Salvador. Those benefits are remittances, financial digitization, more options for consumers, and the ability to do business with foreign companies.

All those advantages can also have a positive impact on other countries in Latin America and the Caribbean. As for Jamaica, Haiti, and Suriname, they are among those nations with high fee costs of sending remittances through traditional services.

By Alexander Salazar

Rieder said that he owns a small amount of Bitcoin, so he believes that its price could soon go up significantly. The ban on mining in China and the subsequent drop and reallocation of the hash rate led BlackRock to invest in that activity.

The drop in the price of Bitcoin to USD 44,380 on September 7^th has upset many users of the cryptocurrency ecosystem. There have been many opinions from analysts who expect a recovery for the cryptocurrency after testing the resistance level twice. However, one of the most relevant views seems to be that of Rick Rieder, CEO of investment management company BlackRock.

As that company and its competitors are shareholders in most large multinationals, its strategic advice is of particular interest. For that reason, Rieder’s opinion on the price of Bitcoin caught the attention of users of the cryptocurrency ecosystem.

A Significant Rise in the Price of Bitcoin Is Approaching

Rick Rieder recently explained that he has been very attentive to the behavior of that market since he owns a small amount of Bitcoin. Therefore, he believes that the price of the cryptocurrency could rise significantly.

The executive of the asset management company has done a lot of research on Bitcoin, which is why he described it as an alternative currency. Increasing adoption at the global and government level will likely dictate its future price movement. In addition, the case of El Salvador could give some support to his projections.

He explained that he had a small portion of Bitcoin because he believed more people would enter that fray eventually. He expressed that he likes volatile assets that have upward convexity. He further predicted that the price of Bitcoin would rise significantly, as it has done on many occasions.

Likewise, Rieder said that it is valuable to have some Bitcoin as a speculative tool. In August, BlackRock allocated more than USD 382 million to shares of Bitcoin mining companies Marathon Digital Holdings and Riot Blockchain.

The BlackRock Company is interested in Investing in Bitcoin

On June 30^th, the US Securities and Exchange Commission (SEC) made a presentation on BlackRock. They showed that the company bought a significant amount of shares in Bitcoin mining companies that it now has in private funds.

The company has continuously expressed its interest in Bitcoin and its price. That represents a small sample of the influx of large traditionally conservative financial institutions approaching the cryptocurrency.

The investment from BlackRock in Bitcoin mining occurs due to the ban on the mining business in China. American mining companies began to benefit from that situation and the subsequent global drop and reallocation of hashing power.

A growing number of companies are aware of the relevance of Bitcoin to the global economic system. For that reason, many have ventured to invest in that asset to keep it as a store of value. Although the price of the pioneering cryptocurrency has fallen dramatically on many occasions, it has proved able to recover and exceed its all-time highs.

By Alexander Salazar

Nobody knows yet which mining pool or miner completed the achievement on the BTC network. The lucky one received the reward of 6.25 BTC in addition to another 0.1538 BTC for the payment of fees.

More than 12 years ago, developer Satoshi Nakamoto put the Bitcoin (BTC) network into operation. The long blockchain accompanying it recently reached the new milestone of 700,000 mined blocks.

Metrics from btc.com indicate that the block had a weight of 1.28 MB and included 1,276 transactions. However, no one knows which mining pool or miner completed the achievement since the identification section only shows the word unknown. The mempool.space service returns the same result, reporting that that occurred at 04:14 UTC with a total of 49,601.54 BTC.

The lucky one received the reward of 6.25 BTC in addition to the fees generated by the included transactions. The amount was 0.1538 BTC, which means that the miner got a total of 6.40 BTC. That figure is equivalent to almost USD 290,000 based on the current price of the first cryptocurrency on the market.

The Bitcoin Network Remains Active and Expands

The Bitcoin network reached 700,000 mined blocks, while its native cryptocurrency has a trading price of over USD 45,000. Those two facts show that this digital system is increasingly operational despite various obstacles. Clones, forks of projects, and proposals of other blockchain networks appeared, but Bitcoin continues to expand as a means of payment, store of value, and investment.

Another critical element of this milestone is the smooth deflationary monetary policy on the Bitcoin network. Not even the exodus of Chinese miners, bans, or regulations in multiple countries have prevented it from further expanding. The volatility of the markets and accusations that it is a slow network or harms the environment have not stopped it either.

There Are Still 5.1817.000 BTC Left to Mine on the Network

Bitcoin halvings reduce the number of coins issued on the network every 210,000 blocks. In the beginning, each mined block generated an incentive of 50 BTC, but the current figure is 6.25 BTC. There will be a total issuance of 21 million BTC, of which 18,813,000 BTC are in circulation or under the safekeeping of their holders.

The international Bitcoin community could not help but notice the historical achievement that the network reached. On Twitter, developer Pieter Wuille posted a message to commemorate how representative that figure is. The Belgian programmer congratulated the network for reaching the 700,000 Bitcoin milestone.

In the same post, Wuille referred to a tweet he posted in October 2019, when the Bitcoin network reached 600,000 mined blocks. For reference, the developer retains a tweet from December 29^th, 2010, when Bitcoin achieved 100,000 mined blocks.

Twitter users responded to Wuille by saying that Bitcoin could hit 1 million blocks in around six years if the trend continues. Others noted that the figure will rise to 1.4 million blocks in 2034 after the sixth blockchain halving.

By Alexander Salazar

To prepare for any risk, users need to understand where the returns are coming from in a DeFi protocol. The investor must evaluate the track record of a platform rigorously before putting his money on it.

The wave of DeFi mania happened in 2020, but decentralized finance platforms still captivate investors. The returns that those protocols provide considerably exceed those of traditional banks and finance companies.

Although DeFi platforms offer advantages to users, they also pose risks. Many people have reported scams, hacks, lost money, detected vulnerabilities, and various errors on those platforms.

Developer Facundo Ameal recently spoke about how to take better advantage of decentralized finance. The specialist belongs to the team of DeFi performance aggregator Yearn Finance.

Ameal commented that those interested in decentralized finance should research before risking their cryptocurrencies or tokens on a given platform.

It is Necessary to Evaluate the Track Record of a Project

Argentine specialist Facundo Ameal considers that it a protocol must have a track record. He argues that not only does that ensure there are fewer problems, but it also allows seeing how to respond when there are.

The expert claims that he gives such advice based on his personal experience at Yearn Finance. He has observed that those projects must have many people working on an incident response process. The developer says that must be the case for other protocols with a track record like Aave, Compound, Uniswap, and Sushiswap.

The Investor Must Know Whether the Project Has Audits

Ameal believes another crucial factor is for investors to know that DeFi protocols have audits. In addition, they should be able to read the reports by the auditor, which are generally available to any interested party.

The counselor adds that users should open and read the audit to check whether there have been errors. Likewise, they must see what the members of those projects have done to respond to those problems and solve them.

There is a Generally Greater Risk from Higher Returns

Regarding that issue, Ameal recognized higher investment returns generally equate to greater risk. He recalled that there were returns of 10,000% per year in the DeFi summer when investors had to look at their investments without shutting an eye.

However, the member of Yearn Finance does not consider that to be a hard-and-fast rule. For that reason, he adds that there is a generally greater risk from higher returns but says the same can happen from lower returns.

It is Important to Know the Origin of the Returns Offered by a DeFi Platform

It is essential that the investor knows the protocol in-depth and understands where the returns it offers come from, says Ameal. The origin of those profits may be the issuance of a governance token, other DeFi protocols, or loans, among others.

Facundo Ameal expressed that he believes that is the most important thing to know. He commented that the investor who does not understand where the return comes from is the return.

By Alexander Salazar