Bitcoin in El Salvador

Bitcoin is having quite the week in El Salvador, as the small country in Central America announced that they have become the first country to adopt Bitcoin as legal tender. Following this big announcement, President Nayib Bukele posted on his Twitter account that he has instructed the national power company, LaGeo SV, to begin developing a plan to provide renewable energy for Bitcoin mining powered by volcanos. While this sounds like something dreamed up in a science fiction movie, engineers in El Salvador dug a well yesterday that will provide 95 MW of clean energy (geothermal) powered by a volcano. See video here: https://twitter.com/nayibbukele/status/1402714926800674827?s=20

One of the major reasons President Bukele wanted to do this was to help citizens of El Salvador who live abroad send remittances back home without outrages fees, which often are more than 10%. El Salvador relies heavily on money sent back to the country from workers living abroad. World Bank data showed remittances to the country made up nearly $6 billion, or around 20% of GDP in 2019 (one of the highest ratios in the world). The Telcoin project is trying to solve this dilemma too. El Salvador does not have its own currency, and the US dollar will continue to be legal tender there too.

El Salvador will also offer citizenship to people who can show proof that they have invested in at least 3 Bitcoins (currently worth about $112,000). El Salvador will also allow taxes to be paid in Bitcoin, and businesses must begin accepting Bitcoin in 90 days, since it will be legal tender. It will be very interesting to see how the next 3 months go in El Salvador, and if other countries decide to follow their lead.

The Impact of Social Media on our Mental & Physical Health

Normally I blog about cryptocurrency, finance or technology; however, I read a book on vacation this week that was particularly powerful and I wanted to share some thoughts. Chances are you, the reader, have a social media account. In fact, you may have many accounts on platforms such as Facebook, Instagram, Snapchat, TikTok, etc. And chances are you have a Gmail account or at least have performed a Google search. If you have, then I would recommend that you read a book titled "Ten Arguments for Deleting Your Social Media Accounts Right Now" by Jaron Lanier. Here are some of the key takeaways I noted when reading this excellent book:

• Facebook makes more money when people are irritated, angry, obsessed and divided.

• How can you find happiness and be authentic when everything you read, say or do is fed into a judgment machine?

• Facebook naturally promotes tribalism and is tearing society apart. People stay in their little ideological echo chambers and what they see is specifically targeted to their tastes, so they don't see other points of view very often.

• Empathy is the fuel that runs a decent society, and Facebook slowly removes a person's ability to empathize.

• In the scientific community almost everyone agrees that climate change is a huge deal and we must confront it sooner rather than later, yet a small but powerful group of business people and politicians don't buy it. They see climate change as a con to attack their wealth and power.

• Immunization is one of the most powerful inventions in human history. It has basically erased things like polio, smallpox, measles, mumps, rubella, etc. You and I probably know people who refuse to get the COVID-19 vaccine. They believe all kinds of ridiculous propaganda they have read or heard about the vaccine (much of which they have consumed on social media). And their paranoia puts other people at risk.

• The crazy world we now live in has devolved to such a point as to where real news is called "fake news" and fake news is what many people believe. It is almost as if the movie Idiocracy is happening in real life.

• Scientific studies have proven that social media makes users less happy. They see other people on vacations or driving nice cars and they feel that they are not pretty enough, don't make enough money are not popular enough, etc. This is especially true with teenagers girls and we've seen an increase in suicide, eating disorders and other issues as a result.

• Facebook and other social media companies have become the "ransomware" of human attention. They have such a hold of our attention that they have essentially become the gatekeepers to our brains.

• Social media platforms have helped some of the most selfish, cruelest leaders get elected around the world. It happened in the USA with Trump's boost thanks to Cambridge Analytica's targeted Facebook campaign -- and you have seen it in other countries like Turkey and Austria. There have also been social media campaigns used to target the Rohingya's in Myanmar and certain tribes in South Sudan. It was even used to organize the Capitol insurrection in Washington DC.

May 19, 2021 - Email to Clients

I thought I would share an email I sent to clients this morning, in response to the last 24 hours, which has been a bloodbath.

---

So it is a "sea of red" this morning if you are looking at crypto prices and charts. When we started the crypto journey we knew there would be ups and downs. Ups are easy to handle, downs are not. Nobody likes losing money, but remember, you don't lose anything unless you sell. We have been here before with crypto, when for example, Bitcoin had a performance of -72.8% in 2018. The people that held on (or bought the dip) were rewarded.

I think part of the problem this week is there is a lot of new money in crypto. Those relatively new investors see Elon Musk say a few negative things and when the market goes down the panic selling begins. At the end of the day, it is your money and if you want me to sell I will do so, but I would encourage you to hang in there.

Sometimes the best strategy at a time like this is DON'T look at the prices. Tune out the noise. Don't listen to the panic sellers. Focus on something else like your job, wife, kids, or hobbies. I think it will bounce back and holders will be rewarded in the long run.

Lastly, this email is not targeted at you specifically. I am sending it to all clients. I don't think you are a panic seller!

Best regards,

Dustin Franks Founder, Portfolio Manager Crypto Solutions, LLC www.cryptocurrencysolutions.info