Crypto News: El Salvador Opens the Bitcoin Floodgates While Crypto Prices Take a Nosedive

Originally published June 10, 2021

El Salvador’s President is Opening the Bitcoin Floodgates

Niyab Bukele isn’t just the President of El Salvador, he’s also very bullish on Bitcoin. So much so that his official Twitter account lists these four reasons for Bitcoin entrepreneurs to start moving their ventures to the Central American nation:

1.       Great weather, world class surfing beaches, beach front properties for sale.
2.      One of the few countries in the world with no property tax.
3.      No capital gains tax for #Bitcoin, since it will be a legal currency.
4.      Immediate permanent residence status for crypto entrepreneurs.

Bukele’s decision to make Bitcoin a legal currency in the country is big news for broader adoption. It also points to the fact that many developing nations around the world can no longer fully depend on the traditional financial system.

Many tech savvy leaders are starting to see the first mover advantages that go hand-in-hand with making Bitcoin a legal form of currency.

It may not take long for other countries to follow suit either. Paraguayan Congressman, Carlito Rejala, thinks his nation should follow El Salvador’s lead and also make Bitcoin a legal form of currency.

Cryptocurrency Prices Nosedive on Tuesday

The prices of Bitcoin, Ethereum and most other major cryptocurrencies plummeted between 10% and 15% throughout the trading day on Tuesday.

A company called Colonial Pipe Co. paid out a $2.3 million ransom to hackers in Bitcoin. The funds have been recovered by United States government blockchain forensics experts.

Why is the market proceeding this as bad news?

It challenges the narrative that blockchain technology and cryptocurrencies can be completely free of government control, and proves that it might be possible for tax authorities to catch people who may not be paying their dues on capital gains.

Tuesday’s nosedive will likely be temporary but cryptocurrencies have been slumping as a whole over the last month or two.

Class-Action Lawsuit Says Coinbase Wrongfully Locked Out Users

Six cryptocurrency investors are coming together to launch a class-action lawsuit against popular cryptocurrency exchange Coinbase. The lawsuit alleges that the six plaintiffs, and many other users over the last four years are being locked out of their accounts for several months at a time without just cause.

In a complaint filed last week in a San Francisco courtroom, Oklahoma resident Joseph Treseder deposited $30,000 USD with Coinbase intending to buy the XRP token. One month later he received an error message when trying to log in that stated his credentials were invalid.

Despite repeated attempts to contact customer service, Teseder says it took months to restore his account.

The lawsuit is seeking $5 million USD in damages for the six plaintiffs and other users who’ve been locked out of their accounts for several months at a time.

Vitalik Buterin Invested $25,000 In Dogecoin for a $4 Million Profit

Vitalik Buterin is the lead founder of the Ethereum blockchain and has an estimated net worth well over $1 billion USD as a result. He’s one of the richest people in cryptocurrency.

That’s the title you might be able to have if you are a founder back in 2013. It turns out that Buterin didn’t put all of his eggs in one basket. He is also an early investor in Dogecoin.

Buterin invested $25,000 into the project back in 2016 and ended up with a $4 million profit off of that money a few years later.

Fortunately, the Canadian blockchain entrepreneur happens to be a very generous young man. He’s donated the $4 million profit to charity.

Whether you’re as charitable as Vitalik, or you want to try to make millions or even billions of dollars like he did, perhaps you’re considering an investment in cryptocurrency.

Look no further than Netcoins when you’re ready to make your investment decision. Netcoins is one of the leading cryptocurrency exchanges in Canada. It’s free to register for an account and you’ll get some of the best rates available on the open market today.

Do you want to purchase bitcoin? Netcoins has you covered with lots of different cryptocurrencies!

That’s it for your Netcoins Weekly News Roundup!