How Tonga Volcano Eruption Unleashes Bitcoin-Affected Crypto Markets?

On Friday, the national island of Tonga in the South Pacific was hit by a massive volcano and tsunami. Since then, former Tongan lawmaker Sir Pushtu has announced his bitcoin wallet address from the relationship, saying he can donate this address to Tonga.

As of January 21, the exchange rate had risen by more than 0.48 Bitcoin, with 362 transactions equaling around 120,000 RMB. As the picture below:

File Source: TokenView

Although the donations are different from what international organizations have always had, the digital assets represented by Bitcoin have given Tonga a new lease on life after the disaster. Compared to the complexity of traditional financial processes, Bitcoin can provide faster, broader and more direct support. So, in addition to addressing bitcoin wallets that provide donations, Lord Fusitua said Tonga's decision to adopt El Salvador's bitcoin as fiat "could take place in November or early April. December 2022 " will be repeated.

Looking closely at the evolution of Bitcoin, every major problem that arises is the opportunity for Bitcoin to grow and evolve. This crisis can be a natural or man-made disaster, a global economy or a global economy. Bitcoin will improve by leaps and bounds during this turbulent time, gradually evolving from a niche geek's asset to an asset owned by real, important people. Although it has entered more and more groups, it is driving the growth of the entire crypto industry.

why all this violence

Is it all due to the rise of Bitcoin?

The eruption of the Tonga volcano has generated international interest and many countries have expressed interest in providing assistance to Tonga. However, support may be delayed due to transmission. Since the problems of family life and livelihood caused by the volcanic eruption in Tonga can be solved through financial aid and reconstruction, financial support will be more important than support for living equipment.

And difficulties in the traditional financial process can delay the promotion of international trade to Tonga. For example, other foreign aid to Tonga's economy would not be affected by the financial differences between the two countries.

In addition to help from government agencies, if ordinary people from other countries try to donate to Tonga, they will face more problems and still cannot find a channel. However, Bitcoin can solve this problem perfectly, if an ordinary person wants to donate to Tonga, they can do so with Bitcoin, and not have to worry about exchanges in time, place, or cost and loss. the price.

Of course, not only individuals, but also affiliates, organizations and other organizations can donate if they know and own Bitcoin. What Tonga needs to do is make it easy, just set up a field account, save a lot of energy, investment and time for donors and recipients. Now that Lord Fusitu has opened a responsive account, the number of Bitcoin donors has increased since the account was opened.

Why Tonga accepts Bitcoin for free is clear from the reviews above. Convenience, uniformity and low cost. This is determined by the nature of Bitcoin, which is in essence an electronic payment system implemented entirely by peer-to-peer technology independent of a payment system, transactions and transfers.

Of course, the most important reason is that the value of Bitcoin continues to rise around the world. In terms of value, consensus is the greatest value, so far, the number of Bitcoin holders has exceeded 40.18 million, the number of holders or trade participants has exceeded 100 million, and more and more new people have entered these players across borders, race and religion can say a strong consensus has formed globally its like gold and bitcoin is also called digital gold.

The above is one of the main reasons why Bitcoin has been risky all the time since its inception, of course there are other reasons like Bitcoin's anti-inflation, hedging power, infrastructure growth and the development of cryptocurrencies. industry, overall success, etc.

However, looking back at Bitcoin's rise and fall, Bitcoin's product has been recognized and seen because with each crisis, Bitcoin changes the crisis over time.

For example, the continuous influx of Turkish currency, the lira, which started last year has made the Turkish public more interested in digital assets such as Bitcoin, and most traders choose digital assets such as Bitcoin to fight. against inflation. Currently, more than 5 million people in Turkey have cryptocurrency trading accounts.

Another example is the US-Iran crisis that erupted in 2019. Many traders switched to Bitcoin, driven by risk aversion and speculative speculation, which led to Bitcoin rising over time. There was also the Brexit crisis in Greece in 2016, the US shutdown crisis in September 2013, the Cyprus crisis in March of the same year and the US debt crisis in 2011. With all these problems , bitcoin will be more. Explore and take turns on the event and jump.

The last two years have seen the resurgence of global unrest following the emergence of a new virus, which could be another major experience that Bitcoin has had since its inception and other good times for Bitcoin's development.

How will this affect the cryptocurrency market?

If you're asking how Tonga's acceptance of free bitcoin will affect the cryptocurrency market, there's probably not much to say now, unless Tonga repeated El's decision. Salvador to accept Bitcoin as fiat currency. Consider the potential impact of this situation.

All of Bitcoin's significant characteristics were discovered and recognized due to the onset of a "crisis", and Bitcoin's ability to turn the crisis into an opportunity to bring a "new path" to Bitcoin itself and all the way will continue. For the crypto sector.

For example, the world-renowned dark web site “Silk Road” once traded over 9.5 million Bitcoin and accounted for 80% of Bitcoin at the time, so Bitcoin was called the “Dark Web Dollar” back then. era. The Silk Road has been suppressed by the FBI in the United States, but the cost of Bitcoin travel and payments has become more sophisticated. The characteristics of anonymity, distribution and cross-border distribution of Bitcoin can easily be gradually expanded and implemented. , and gradually expanded into the crypto industry. "Rules" for the entire industry.

The main reason for Bitcoin's rapid growth from the background of Bitcoin's birth (the 2008 subprime loan crisis) is that the moment of financial market completion has always been Turkish lira and Cyprus fragmentation. One problem is that Bitcoin products prevent inflation and the potential for asset ownership to grow and uncover.

The global irrigation due to the economic crisis caused by the transmission has led to the influx of large organizations, and the new funding has expanded many new constructions and operations, allowing the entire crypto industry to evolve . New financial models and the creation of a new decentralized facility have completely energized the school business environment, and have become an important asset for existing organizations and investors.

In fact, this isn't the first time Tonga has received free Bitcoin, and the issue itself hasn't received much attention outside of the crypto market. It simply says, "The wave begins at the wave, and the wind begins at the end of Cheongpyeong." If you look at this in a few years, you will see that it is a "new way" and a step forward. Like the geography of shipping, in the Age of Discovery ships sailed an extra mile west of the Atlantic Ocean.