The best of the Bitcoin and Cryptomoedas markets in Brazil and the world.
The week was great news for the cryptomoedas markets in Brazil and the world. The announcement that PayPal will integrate cryptomoks into its merchant network was the push that was enough for Bitcoin to reach its highest global price in 52 weeks: $13,200.
The Bitcoin rally pulled the entire crypto market higher, leading the second largest currency, Ether, back to the $400 range, as well as establishing new supports for major currencies such as Bitcoin Cash, Chainlink and Litecoin.
PayPal’s entry into the crypto market is expected to attract other major players, as 2020 has become the year of the largest institutional adoption of cryptomotes.
BTC’s appreciation has also brought unusual comparisons. An Iphone 4 bought in 2010, which at the time cost about R$ 1,800, was worth about 18,000 Bitcoins. If the value had been invested in cryptomoeda, the trader would have been the happy owner of R$ 1.6 billion.
The high also impacted the domestic cryptomoeda markets. This week, seven countries wrote down historical highs for Bitcoin: Turkey, Argentina, Sudan, Angola, Venezuela, Zambia and Brazil.
In the Brazilian market, with the galloping devaluation of the Real and inflation in sight, the Bitcoin passed the old record of R$ 70,000 and only stopped when it reached R$ 73,500. This Friday, the largest cryptomoeda faces a small correction and is being traded in the R$ 72,800 range.
If the Brazilian news is good inside the Crypto Method market, in the real economy of the population the real is already starting to show a problem. Inflation in the country, which has the most devalued currency in the world in 2020, has increased the most since 1995, when the real had parity with the dollar.
Brazilians‘ ‚hacked‘ savings
The most read news from Cointelegraph Brasil this week is not exactly about a 2020 fact, but it keeps parallel with the economic reality that the country is going through this year.
On March 16, 1990, under Fernando Collor’s administration, Brazilians woke up with all their savings „hacked“ by the government itself: the equivalent of R$100 billion was confiscated from the accounts of the country’s citizens – it was the Collor Plan, which adopted desperate measures to contain the economic disaster inherited from the military dictatorship.
As history told in the following years, Brazil’s economic stabilization would not come from Collor – who would resign two years later – or from his minister, Zélia Cardozo de Mello. The Brazilian economy was balanced by the hands of its substitute in office, Itamar Franco, and its minister, Fernando Henrique Cardozo, with the launch of the Real Plan.
Taking a leap in time this week, the Minister of Economy of the Bolsonaro government, Paulo Guedes, announced that he intends to launch an IPO of the digital bank created by Caixa Econômica to bring emergency aid to the population during the pandemic.
With inflation back in Brazilians‘ lives and the real at its worst, Brazilians at least this time have the crypto market to turn to – without risks of government interference.
Cryptomaniac investors will also be connected to Pix, the Central Bank’s new transaction system, which goes live on 16 November.
In addition to instant withdrawals and deposits at exchanges, traders will be directly connected to Pix through Z.Ro Bank and Atar, which have been approved by the Central Bank to integrate the system.
In other news about fintechs and the digital financial revolution, the Central Bank has established that payment card companies, including Bitcoin cards and other cryptomaps, must be regulated by the entity.
In addition, a Brazilian DeFi platform was selected in a Silicon Valley acceleration program in San Francisco (USA) and OriginalMy received a startups award in the Arab Emirates.
As it is not all good news, an analyst recommended investors to „run away“ from investments in Banco Inter.