Bitcoin,  Latin America

Weekly Bitcoin Review

Issues with El Salvador’s Chivo wallet and Bitcoin dominance diminishing

Bitcoin dominance waning 

The price of Bitcoin has seen a solid recovery over the last week. It currently sits around $51,200. Yet other assets have once again outperformed Bitcoin this week. Cardano (ADA) is up 23% this week, Polygon (MATIC) is up 25% in the week, and Polkadot (DOT) price is up over 30%. In contrast, Bitcoin price is up 9% this week, which is still nothing to scoff at.

This does show that coins on smaller networks are beginning to gain more traction, lowering the dominance Bitcoin has shown over the cryptocurrency market for its entire run. However, this is not due to a lack of people buying or using Bitcoin, but is instead due to investors chasing where the newest money is. Many are looking for the next Bitcoin after seeing the massive success the asset has seen in recent years. The efforts to make big money off of investments other than Bitcoin are not futile, but history has shown to never bet against it. While there are going to be other tokens and networks that see massive success, there will only ever be one Bitcoin.

Salvadorans having wallet issues

Issues with the Chivo wallet in El Salvador have continued to grow. Money has reportedly been lost in several transactions for as little as $50, and up to multiple thousands of dollars. In a country that is trying to switch their national currency to Bitcoin, this is a big setback. Citizens have gone to Twitter to complain about their missing money. They claim that they have gotten no support or help from Chivo or the government. President Nayib Bukele of El Salvador has acknowledged issues with the wallet. However, his administration has done little to actually fix the issues presented. 

There are always going to be setbacks in an ambitious national project like this. The government needs to do a better job at fixing them as efficiently as possible. There are eyes all over the world watching how El Salvador does their Bitcoin experiment, and if they mess it up, it could mean big setbacks for Bitcoin, and cryptocurrency as a whole. 

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Elijah Pollack is editor-in-chief of Modern Consensus. He has previously co-hosted the Audible podcast Extra Credit. Elijah has published work in the past for Book and Film Globe and The Observer.