"Smart money" endorses the rise of South American power, and the wave of politicians' "laser eyes" may create a new harbor for Bitcoin

Bitcoin has been rising steadily in the past 24 hours, taking five cities in a row and recovering all the lost ground from 32,000 to 36,000 US dollars. As of press time, the price of Bitcoin is 36,169.49 US dollars, with a daily increase of 12.81%, which has made up for all the losses of Monday's sharp drop.

Over the past day, much of the power of Bitcoin bulls may have come from a Salvadoran who calls himself "the most fashionable and handsome president on earth," and the social media of foreign crypto circles has basically been flooded with this "Salvadoran little greasy head." He is Nayib Bukele, the President of the Republic of El Salvador.

Bukele changed his Twitter profile picture to laser eyes last Saturday and claimed that he would submit a bill to make Bitcoin a legal tender in the country. Not many people really took this promise seriously, and more topics still revolved around laser eyes. Just when everyone was about to forget this "joke", El Salvador passed the Bitcoin bill, making it the first country in the world to support Bitcoin's legal tender status, and also achieved the purpose of attracting business. The bill also includes that people who invest 3 BTC in El Salvador will be able to obtain permanent residency. A trust fund will be established to bear the risks of merchants accepting Bitcoin. Considering that Spain's golden visa only costs 500,000 euros, Bukele's wave of operations can still bring considerable economic benefits to the country.

We also felt this push from the price fluctuations of Bitcoin, which quickly broke through the two resistance lines of 33,000 and 34,000 in less than two hours.

Now that El Salvador has become a successful case, other South American countries have begun to imitate it. Members of parliament and politicians from various countries have extended olive branches. Among them, Panamanian congressman Gabriel Silva also said that he is drafting a proposal to include Bitcoin and other cryptocurrencies in the country's legal currency. Argentine politician Francisco Sánchez has also become a member of the laser eye. Within a few days, dozens of politicians have joined this traffic wave.

South American countries have been plagued by inflation, and some of them, such as Argentina, have even experienced hyperinflation. Previously, the author mentioned in the article "The Argentine People Turn Decay into Magic, and the Crypto Mining Industry Booms with the Extreme Policies of the Argentine Government" that in order to cope with hyperinflation and high-pressure monetary policies at home, the Argentine people began to contact Bitcoin early, and Bitcoin mining even began to take root and flourish in Argentina based on the deformed economic state. Many South Americans regard Bitcoin as a panacea for salvation from the perspective of living with dignity, so perhaps this "laser eye" craze has only turned the "unspoken secret" into a "flag-waving" wave. From this perspective, this wave of crypto craze in South America is worth our careful consideration.

On the other hand, Warren Buffett, the stock god who has always been the representative of "smart money" and once "avoided talking about" Bitcoin, seems to have seen the potential of the South American market from the news. Just on Tuesday, Warren Buffett's Berkshire Hathaway announced that it had invested $500 million in Brazilian digital bank Nubank. Nubank acquired brokerage firm Easyvest, and the two financial companies plan to join forces to provide Bitcoin ETF investment services to customers. Nubank and Easyinvest have been in negotiations since the fall of 2020, and the acquisition will take place later this year.

As early as 2014, when the company was still a small company, it received an investment of 14 million US dollars from Sequoia Capital. By 2018, Tencent had given it a valuation of 4 billion US dollars and invested about 200 million US dollars in it, acquiring a 5% stake. Nubank is very popular among young people. It has opened up the entire Brazilian market with virtual credit cards, which make them feel that they can control their own accounts and consumption. In addition, the company has successfully reduced the cost of the entire Brazilian payment market with Internet strategies such as 0 annual fees, extremely low interest rates, and convenient account opening. By 2020, Nubank has more than 20 million customers, of which about 70% are under the age of 36, which means that Nubank has become the memory of a whole generation of Brazilians after the millennium.

Prior to this round of investment by Buffett, Redpoint had already completed a round of follow-up investment in January, totaling US$400 million including funds from other investors.

"Smart money" has openly endorsed the entire South American economy, and South American politicians are now trying to tie themselves to Bitcoin through legal, political means, and even social media influence. So after China and the United States, will South America become the new dominant force? We will wait and see, and let time give the answer.