🥛El Salvador is down millions on Bitcoin. But is it all bad?👀

  • October 11, 2022
  • 3 Min Read

GM. This is the Milk Road. The daily crypto newsletter that's like a pot of coffee: always hot, always fresh, and always worth your time.

Here’s what we got for you today:

  • Milkbusters: How’s the BTC experiment in El Salvador really going?
  • The SushiSwap CEO did what?!
  • Quick bites
  • Meme of the Day

MILKBUSTERS: HOW’S THE BITCOIN EXPERIMENT IN EL SALVADOR REALLY GOING?

We’re back with another Milkbusters - where we debunk common myths & misconceptions in crypto. 

Today we’re here to talk about: El Salvador and Bitcoin.

Now, you’ve probably already seen all the headlines...

“El Salvador’s Bitcoin experiment is a failure!”

“El Salvador has lost millions in Bitcoin!”

“Bitcoin is hurting small businesses in El Salvador!”

But what if I told you a U.S Treasurer just came back from a trip to El Salvador and had a different story to tell? 

That’s right. South Carolina’s State Treasurer, Curtis Loftis Jr., recently came back from a "fact-finding" trip in El Salvador with 5 other state delegates.

The goal: To study how cryptocurrencies & blockchain technology are being used around the world and see how South Carolina could potentially benefit from it. 

And guess what… the state treasurer's job isn’t to be a fan or hater of Bitcoin. His job is to find the facts. No fake news here.

Here's the biggest takeaway he had from a recent interview:

Boom! Straight from the mouth of a U.S State official. 

And there was one thing that really caught his attention: Bitcoin is helping rural businesses & street vendors that are unbanked.

In fact, ~80% of people that are running small businesses that use Bitcoin are unbanked.

Many of them are in rural areas where banks are as common as finding a chicken nugget in your order of fries. If you find one, you're lucky.

And Loftis says he's excited to think about how South Carolinians in rural communities might also benefit from using Bitcoin.

Now, don’t get us wrong... it’s not all sunshine & rainbows down in El Salvador. They’ve still lost between $50m-$60m on their own Bitcoin investments. 

But to call the experiment a complete failure after one year is a bit premature. The reality is El Salvador has seen more economic growth because of Bitcoin. 

How? Well, more businesses are attracted to El Salvador now that it's crypto-friendly. And Bitcoin Beach has also helped bring in more tourism.

More businesses = more jobs. More tourism = more revenue. 

According to a recent report from El Salvador, this is what growth has looked like:

  • Tourism income: +52%
  • Employment: +7%
  • New businesses: +12%

So, where are the haters? WSJ? Bloomberg? 

The media treats El Salvador like the first kid in school that got an iPod.

Some thought it was cool. But most were haters.

The truth is they just weren't ready for a change and were jealous they were still carrying a disk-shaped, 10 lb, 12-button CD player around.

THE SUSHISWAP CEO DID WHAT?!

A year ago SushiSwap was the 5th largest decentralized exchange. Today, volume is down 85%+ and they've been knocked out of the top 10 DEXs.

It's been a rough year for the food-named crypto exchange. And yesterday they made headlines again.

This time, there were 2 rumors about their new CEO, Jared Grey, that were spreading like wildfire:

1/ His previous company, Bitfineon, had stolen funds from customers

2/ He allegedly committed horseplay

And I mean that quite literally. This rumor included Jared, his finger, and a horse.

I’ll let you guess the rest…

While everyone rushed to Google "Jared Grey horse", Sushi’s token ($SUSHI) plummeted 12% on the rumors.

So, what did Jared have to say?! Both are 100% false. 

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Turns out:

  • it was his former business partner that stole funds (he fired the guy & refunded all the customers)
  • there's another guy named Jared Grey, who happens to be an adult film star. Jared says this mix-up has been the "bane of his existence"

*phew*

What a day. Never a dull moment in crypto. 

TODAY'S EDITION IS BROUGHT TO YOU BY PANINI

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QUICK BITES

BNY Mellon is adding cryptocurrencies to its custody services. America's oldest bank 🤝 crypto

Google Cloud & Coinbase are teaming up to build advanced exchange and data services. Select Google customers will also be able to pay for cloud services using crypto. 

Web3 Trademark Alert: Formula One (F1) has filed 8 trademarks that include plans for NFTs, crypto trading, and retail stores for virtual goods. Another day, another trademark.

MEME OF THE DAY

That's a wrap, ladies & gents. Stay thirsty & see ya tomorrow!

If you want more, be sure to follow our Twitter (@MilkRoadDaily)

A ROADERS REVIEW

VITALIK PIC OF THE DAY

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.

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