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Bitcoin is on the rise, thanks to a rapidly spreading social media movement encouraging users to buy $30 worth of cryptocurrency on September 7.
As Bitcoin bulls see a successful September, the largest cryptocurrency rose 2.5 percent on Monday to a four-month high of $51,908 before falling down to $51,600 by press time.
Bitcoin has experienced a remarkable increase in daily trade volumes, topping $77 billion, with weekly gains of 5.6 percent.
One possible reason behind the latest price action is a growing social media campaign calling for people to purchase small amounts of Bitcoin on September 7 when the cryptocurrency becomes legal tender in El Salvador.
Over the past few days, users on social media platform Twitter, often via the #7SeptemberBuyBTC hashtag, have been sharing plans to coordinate $30 purchases of Bitcoin–a move meant to show support for El Salvador’s Bitcoin law.
Some prominent figures joined the campaign as well, including MicroStrategy’s CEO Michael Saylor, who wants “every cyber hornet” to show solidarity with the people of El Salvador and the country’s president Nayib Bukele.
Members of the 3.3 million strong r/Bitcoin, the largest Bitcoin-themed group on Reddit, are also being urged to join the action, with the topic starter going under the pseudonym “thadiusb” calculating that if all of the group’s members join the call, they potentially could buy up to $99.5 million worth of Bitcoin.
However, while “thadiusb” argues that this is “more of a support gesture, rather than a pump,” some users already voiced their concerns that a coordinated campaign at a specified date and time could cause a price pump and “make it more expensive for Salvadorans to accumulate.”
The Bitcoin’s law controversy
The new law recognises Bitcoin as “unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out,” as proposed by President Nayib Bukele and passed by the Legislative Assembly of El Salvador in June.
In essence, El Salvador’s new legislation recognises Bitcoin as a genuine currency on par with the US dollar, while citizens who join up for the government-sponsored crypto wallet Chivo will be eligible for a $30 crypto airdrop.
The law also requires that all pricing in the country be stated in BTC, and that merchants and sales outlets accept cryptocurrency.
However, there is still some doubt about this article because the President just stated that the usage of Bitcoin will not be necessary.
Despite President Bukele’s joy, El Salvador’s Bitcoin law was met with criticism, leading to a lawsuit launched in June by the country’s opposition party, the Farabundo Marti National Liberation Front.
According to an August poll, more than two-thirds of Salvadorans (67.9 percent) oppose Bitcoin becoming legal tender.
Some people flocked to the streets to protest the new legislation, expressing concern that it “could be used to scam users as well as promote money and asset laundering.”
Mario Gomez, a cryptocurrency and computer systems professional and the creator of digital incubator Hackerspace, spoke out against the Bitcoin law and was even detained for his dissent. He cautioned about problems and risks linked with the Bukele government’s execution of the legislation.