Cryptocurrency News: We have compiled three developments that are likely to affect the cryptocurrency markets this week.
El Salvador will distribute $30 worth of BTC for free
The Central American country of El Salvador, which legalized Bitcoin with the US dollar on June 9, is now going one step further to ensure the adoption of Bitcoin in the country. President Bukele last week called out to the nation, announcing a free Bitcoin airdrop program where every registered adult will receive $30 worth of BTC in their mobile crypto wallet. The government is also partnering with different mobile operators to expand the national crypto wallet program.
What made the event all the more important was the country’s president explaining how the Bitcoin wallet works on the national television and radio network. The President also announced that the new Bitcoin law will come into effect from September 7.
China’s cryptocurrency crisis
China’s crypto crackdown over the past two months has led to the complete dissolution of Bitcoin mining center status, with many large mining farms leaving the country. The big breakout is finally starting to show its impact on the Bitcoin network as the hash rate (processor power) drops to new lows. Many of these miners have decided to move to North America and Kazakhstan for a better future, but many believe it will take a few more months to start a newer mining operation.
The closure of Chinese mining farms is also seen as a big event for the Bitcoin network, as centralization in Bitcoin mining has been criticized due to Chinese dominance. MicroStrategy CEO Michale Saylor described the latest editions as a trillion-dollar mistake.
a16z launches third crypto fund worth $2.2 billion
Andreessen Horowitz (a16z), a venture capital firm from Silicon Valley, announced a few days ago that its third crypto fund is expected to be worth $2.2 billion. The firm was already managing two other crypto funds, which are estimated to be worth over $800 million.
The a16z is admirable by approaching potential multi-billion dollar companies early on. Coinbase was one of the first investors on Facebook and Pinterest.