Ethiopians Come Together to Get the Govt. of Africa’s Second-Most Populous Nation to Adopt Bitcoin

Ethiopians Come Together to Get the Govt. of Africa’s Second-Most Populous Nation to Adopt Bitcoin

While central banks around the world are working on the digital version of their fiat currencies, El Salvador went ahead and declared Bitcoin legal tender.

El Salvador has made the first move, and people in other countries now want their government to go the same route.

As we reported, think tank Lobby New Zealand sent a letter to Prime Minister Jacinda Ardern “asking that the New Zealand Government recognize Bitcoin as a foreign currency.”

Ethiopia is considering the same where Bitcoiners of the country have come together to start Project Mano that is urging the government to adopt the cryptocurrency.

Defined as Step By Step plans for Africa’s second-most populous nation to embrace Bitcoin, Project Mano shared on Twitter that throughout this year, they have been pushing their government to consider mining and accumulating the crypto asset to combat the rising inflation.

The year-on-year overall inflation rate for the past 12 months leading to May 2021 surged by 19.9% compared to a year ago, as per the report by Ethiopia’s Central Statistics Agency (CSA).

Even the US dollar can’t help as it “is no longer linked to a scarce resource, there is nothing stopping the Federal Reserve from printing it excessively leaving countries that rely on holding it vulnerable to other nations monetary policies,” states the website of the open-source project.

Instead of being at the “mercy” of a few people, Project Mano proposes using Bitcoin, which is dependent on the global free market.

Mining, HODLing, and making it legal tender are three ways recommended for the country to adopt the crypto asset. It said,

“The project aims to publish more detailed plans both for the government and interested private parties on how they could change to a new volatile culture and establish a colorful future for Ethiopia,”

Already, Africa is leading the P2P bitcoin trading volume, as per data from UsefulTulips.

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While North America remains the most active, Africa as a whole is the fastest-growing continent in terms of the peer-to-peer trading volume.

Over the past six months, there was a 15% to 30% increase in bitcoin trading volume in most of the African nations.

With roughly $17 million in volume in May, Sub-Saharan African countries experienced nearly a 50% increase year-over-year. North Africa and Middle Eastern countries in Africa meanwhile saw a drop in their trading volume in the month of May, at less than $1 million.

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Author: AnTy

‘Long Bitcoin” Is Still the Second-Most Crowded Trade, Despite 50% Drawdown: BoA Survey

‘Long Bitcoin” Is Still the Second-Most Crowded Trade, Despite 50% Drawdown: BoA Survey

80% of fund managers say the market is in a bubble with inflation and bond market taper tantrums being the top tail risk.

About 80% of fund managers surveyed by Bank of America say the market is in a bubble, up from 75% in May.

The survey of 207 investors with $645 billion in assets further revealed that “long Bitcoin” is the second-most crowded trade after commodities.

This has been despite the fact that Bitcoin had a 50% drawdown last month from its all-time high of nearly $65,000 in mid-April. Following the drop to $30,000 and on some exchanges as low as $28,000 during the sell-off, BTC is back above $40,000.

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Meanwhile, an increasing number of institutional investors, asset managers, and banks are adopting cryptocurrencies and offering services.

Just this week, veteran hedge fund manager Paul Tudor Jones said he likes “Bitcoin as a portfolio diversifier” and shared his plan to invest 5% of his portfolio in Bitcoin, the same percentage as gold, cash, and commodities.

Meanwhile, besides long Bitcoin, “long tech stock,” “long ESG,” “short US treasuries,” and “long Euro” are other crowded trades this month.

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The survey conducted between June 4 to 10 further revealed that while allocation to bonds is at a three-year low, net -69%, stocks are back up at 2021 highs of 61%.

Allocation to U.S. equities remained at 6% overweight while allocation to Eurozone equities increased to a net 41% overweight, the highest since Jan. 2018. Meanwhile, exposure to UK stocks increased to the highest level since March 2014 and is 4% overweight.

In the next four years, managers see a mix of value and tech stocks as best-performing assets.

According to 57% of investors, any equity correction to occur in the next six months is likely to be less than 10%.

When it comes to inflation, 72% of investors say it is transitory, and 63% expect the Federal Reserve to signal tapering in August-September. Inflation and bond market taper tantrum are the top tail risk.

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Author: AnTy