Bitcoin FlashCrash Effect On Solana
I’m pretty sure that right now, you may have already heard about the one(1) hour time frame (11pm UTC Time, Sep 7 2021) where prices of Bitcoin, Ethereum, and Cardano have crashed, with Bitcoin to lose over $7,000 in a matter of minutes. Why? Let’s dive in.
SOLANA HOLDING STEADY — AND RISING
Cryptocurrencies are entirely dependent on the Bitcoin Markets. There are a few reasons to this, but while ETH, BNB, and Cardano’s ADA plunged down to 18% per unit, Solana was the only coin that held its position, and even climbed 8% today, as I’m writing this.
Why is this, you ask?
A PERFECT TIME — OR TIMED PERFECTLY?
Well, if it’s not an entirely new coincidence, the crash was timed perfectly on the Bitcoin Day of El Salvador. El Salvador has finally legalized, and launched Bitcoin as its official national currency, becoming the first sovereign government to use bitcoin as legal tender. This means that residents and businesses will pay taxes with the cryptocurrency, including sales, job income, requiring thousands of businesses in their country to accept Bitcoin as payment.
Businesses like Mcdonalds.
Also, as if it wasn’t timed perfectly, Sep 7 was also the rollout of 200 bitcoin ATMs, a machine that converts money into digital currency, and displays a QR Code for your phone to accept the exchanged Bitcoin.
THE END OF EMPLOYMENT BENEFITS
Universal Basic Income, a highly controversial topic that I previously discussed in an old video, had many Americans receive stimulus money in efforts to appease the economic crisis amidst the pandemic. Unfortunately, many spent their stimulus to invest in Bitcoin.
And, Sep 7–8 is also the day that marks the end of these benefits for millions of Americans, which may have partly triggered the collapse of recent Bitcoin prices.
FUTURE OF CRYPTOCURRENCY — SOLANA
According to a The Wall Street Journal, El Salvador has created kiosks with personnel who will introduce citizens to bitcoin, positioned at malls and parks all over the country. This means that adoption will pretty soon help recover the price in all markets, which may drive other crypto altcoins up as well.
Altcoins like the unbeatable Solana.
Solana has not stopped increasing its value, ever since the launch of Solsea, the first NFT platform whose gas fees are so low, it counts as a negligible. Like a literal version of the phrase, “two cents”.
Last June, Bloomberg reported that Solana had raised $314 million in a funding round with the following investors:
- Bankman-Fried’s Alameda Research
- Andreessen Horowitz
- Polychain Capital
They saw the potential of Solana in speed and scalability, two things that Bitcoin failed at delivering. This means that in the coming year, El Salvador might consider Solana as an alternative payment system, especially now that Solana has its own huge ecosystem of apps, exchanges, games, and even replacing Spotify with its Audius app, the audio engine that powers Tiktok’s newest audio sharing service. Citizens will realize this new world that will permeate in the metaverse of digital life.
The BRAVE BROWSER WALLET on SOLANA
If you are using the unrivaled Brave Browser, you will be excited with this:
in the Brave Talk, Brendan Eich spilled that the Solana blockchain is a good choice for the THEMIS project. Without spilling details, Eich discusses that Solana will be natively supported in the early release of — the new Brave Wallet. (https://m.youtube.com/watch?v=Dc1tC3SwBg0&t=19s)
This highlights the need for speed of the Solana Blockchain, a speed that not Ethereum or Cardano can compete with.
Brave is a browser that pays the user every time an ad or commercial is viewed. It pays it using Basic Attention Token(BAT), currently trading at around $0.82 per BAT. (https://brave.com/)
TOKEN MIGRATIONS — MOVING TO SOLANA
This week, TechLead, a youtuber with 1.2 Million subscribers, has announced that the token he created on Ethereum is now migrating to Solana blockchain via an exchange called Dexlab. (https://trade.dexlab.space/#/market/ByjsSVF1FLHrMDVR1tw8tpMwSjR9hnW9YBHjzwGPbjhx)
This is because, considering the effects of the rising gas prices of Ethereum, it is almost impractical to transact anything below $500 on the Ethereum blockchain. This means that investors who just want to “try out” any token on the Ethereum blockchain (such as the million token) can’t do so without paying the $300 (average) transaction fee, per transaction. Also, this outrageous fee limits the players to only the rich and middle class.
Million Token is a social token that was created as a social experiment, and rose from $1 to $19 in just two(2) months.
Thankfully, Solana has provided an avenue for art investors (Solsea) and token investors (Dexlab) to complete the full-scale of a true economy, not being limited to only serve the rich and middle class.