I saw the headline and thought we will be having another El Salvador experience in Brazil only to discover they didnt make bitcoin a legal tender. I think the goal of the Brazil government is to regulate bitcoin and cryptocurrencies. And they are using the FTX scandal as an excuse to do so. I could be dead wrong or paranoid. What do you guys think about this development in Brazil? Is it good or bad for bitcoiners in Brazil?
El Salvador and Brazil are two very different country. Brazil has their own currency which is used by a lot of people in the world. It's the largest country in South America and there are millions of Brazilian who are living abroad and use money to send back to support their family. El Salvador is a much smaller country that had their own currency pegged on the US Dollar for a very long time. That is why I don't think Brazil could switch overnight to Bitcoin as the legal tender, they would need so much Bitcoins first to make that possible and probably can't afford it. But as far as I understand it they only accept Bitcoins as a legal payment method, so there is no real desire to get rid of the Reais. Which is a good thing in my opinion. Having the option to choose between the Reais and Bitcoins make it easier for people to get into crypto currencies. This is going to make it more attractive for crypto miners to settle down in Brazil. Looking at the cheap living cost in some parts of Brazil it could be a new destination for miners to live. The only problem is the heat, a lot of cooling will be required for the mining rigs.