Crypto News on April 27: Bitcoin Adoption Increase, But Price Plunges

Tesla’s Share Price Plummets — with Bitcoin Dipping Below $38,000 

Tesla’s share price plunged by 12% on Tuesday as traders expressed alarm over Elon Musk’s $44 billion purchase of Twitter. Tuesday’s bloodbath on Wall Street reduced the company’s valuation by $126 billion — and also caused Musk’s net worth to plummet. Investors are worried Musk might need to sell shares to fund his deal to acquire the social network… and that it could distract him from his day job as Tesla’s CEO. Ed Moya, a senior market analyst at OANDA, has also warned that the billionaire might not have the financing to complete the Twitter acquisition if Tesla’s share price continues to fall. Although Tesla was certainly one of Wall Street’s worst performers on Tuesday, it wasn’t alone. The tech-heavy Nasdaq plunged to its lowest level since December 2020 after suffering its biggest one-day drop in over 18 months. Meanwhile, Bitcoin fell from $40,500 to $37,900 in 12 hours.

Central African Republic Adopts Bitcoin as Legal Tender

A second country has adopted Bitcoin as legal tender. The Central African Republic has elevated the cryptocurrency to the same status as the CFA franc. It means Bitcoin can now be legally used for purchases. All of this comes eight months after El Salvador became the first country to make BTC an official currency. The Central African Republic is one of the world’s poorest countries — and just 11% of the population have access to the internet. In an interview with Bloomberg, Finance Minister Herve Ndoba said: “There’s a common narrative that sub-Saharan African countries are often one step behind when it comes to adapting to new technology. This time, we can actually say that our country is one step ahead.”

Bitcoin and Chivo Wallet Use in El Salvador Has Plummeted

A damning new report suggests use of the Chivo wallet has plummeted in El Salvador. The U.S. National Bureau for Economic Research notes there was a flurry of downloads after President Nayib Bukele said every Salvadoran citizen could claim $30 in free Bitcoin if they downloaded the app. But a survey of 1,800 households has revealed that just 40% of those who installed Chivo have continued to use it after spending their Bitcoin. The research also suggests that “virtually no downloads” of this app have taken place in 2022 — with a sizable number of Salvadorans reluctant to give Chivo a try because they prefer cash and don’t trust Bitcoin.

Fort Worth Becomes First City in U.S. to Mine Bitcoin

Fort Worth in Texas has become the first municipality in the United States to mine Bitcoin. Three S9 Bitcoin mining machines are going to operate 24/7 in a climate-controlled data center within City Hall. A six-month pilot program is going to take place, and the equipment has been donated by the Texas Blockchain Council. Fort Worth’s Mayor Mattie Parker officially turned on the machines during a ceremony on Tuesday. City officials estimate that each Bitcoin mining machine will use the same amount of energy as a household vacuum cleaner — and it’s hoped this will be offset by the value of the bitcoins generated. In other developments, New York State has announced that it is cracking down on Bitcoin miners who fail to use sustainable energy.

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