The El Salvador Bitcoin Conference ended up being lackluster
- The event did not have the same significance as last year. Even El Salvador’s president, Nayib Bukele, has been very reticent in commenting on this.
- At the El Salvador Summit, Bitfinex CTO Paulo Arduino stepped in, promising to help the government create a regulatory framework for digital assets.
The much-anticipated annual Bitcoin conference in El Salvador this year was overshadowed by the deep crisis in the cryptocurrency industry and the absence of great personalities associated with the sector.
The event kicked off on Tuesday in the capital, San Salvador. It ended on Thursday, November 17, amid great uncertainty about the future of Bitcoin and other digital assets and a frosty atmosphere with many empty chairs.
“Bitcoin Adoption: El Salvador Lightning Summit” didn’t have the glamor and excitement of last year when the small Central American country became the first country to adopt bitcoin as legal tender.
“The fact that prices are low and that there are problems elsewhere (…) creates an uncertain environment,” Juan Fonseca, a Guatemalan who attended the conference, told Reuters.
The fall of cryptocurrencies
The price of Bitcoin (BTC) and other cryptocurrencies have fallen this year mainly due to the increase in the cost of money as a result of the Federal Reserve’s policy of sharply increasing interest rates to try to contain rising inflation in the United States.
Then a series of events, such as the bankruptcy of companies associated with cryptocurrency trading and the collapse of currencies such as the US dollar, did the rest. Large investors dumped these risky assets, causing their prices to drop sharply.
In the same way that the bitcoin price rose between 2017 and 2021, from $1,000 to $68,000, it has fallen this year. The world’s leading digital currency has lost nearly three-quarters of its value and is trading at $17,700.
Then came the sudden collapse of Sam Bankman-Fried cryptocurrency exchange FTX, which ended up undermining what little confidence large institutional investors had in Bitcoin and other risky assets. This constant price drop affected the mood of potential event attendees.
Bitfinex support for El Salvador
Paolo Arduino, CTO at Bitfinex, was one of the most popular participants at the El Salvador cryptocurrency conference. During his speech at the event, Arduino said his company would “double up its efforts to build a free, unstoppable, resilient, and open technology and bitcoin infrastructure for El Salvador.”
The company promised to work with the indebted government of El Salvador, led by President Nayib Bukele, to develop an appropriate regulatory framework for the cryptocurrency market and other digital assets in the country.
After thanking Bukele for his warm welcome, Arduino predicted that “El Salvador will become the financial and technological center of Central America.” He added that “the noise will not distract the builders” from this goal.
For his part, Bukele, who advocates a monetary policy that relies almost exclusively on trading and accumulating bitcoin, announced on Twitter that he will be buying bitcoin daily starting this week.
on the flip side
- Bukele and other BTC enthusiasts are confident that the cryptocurrency will recover in the near future and the losses accumulated so far will be compensated.
- So far, the Salvadoran government has acquired 2,381 bitcoins with a spending of $107 million, according to unofficial estimates.
Why should you bother
The truth is that some analysts believe that Bukele will lose out on Bitcoin and there is no indication that the crypto market will recover soon. With few victories to show in the financial realm, the president maintains that his country now has less corruption and fewer immigrants traveling to the United States.
If you want to learn more about Bitcoin purchases in El Salvador and the latest government data on the FTX crash, check out these articles:
El Salvador will buy 1 bitcoin (BTC) a day, Nayib Bukele announces
Crypto Twitter Bashes FTX (FTT) – Bukele and Billy Markus shot El Salvador at SBF
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