Business Opportunities with Bitcoin and Crypto in Medellín
In recent times Medellín has become one of the best places to do business with Bitcoin and other cryptocurrencies. In this article we’ll discuss how this has grown steadily and the incredible opportunities provided for investors to live, and develop their financial endeavors in Medellín, which has become a paradise for entrepreneurs, big time players and fans of the digital financial world.
Data of The Blockchain Ecosystem in Colombia
In Colombia, according to estimates by financial specialists, monthly transactions in crypto assets (mainly in Bitcoin), rise to a promising $70,000,000 US dollars. This places the country as one of the fastest growing markets in the region and the ninth in the world. Projections could not be more encouraging given that if the current trend holds, it is estimated that in 2024 transactions in the country will be worth more than one hundred million USD per month.
Check data in:
Why You Should Consider Investing in Bitcoin and Cryptocurrencies in Medellín
Medellín is a city that has been betting on new technologies, economic growth and social development for two decades now, and it shows when one sees the surprising urban transformation. Since war on criminal gangs and drug trafficking ended with the so-called Operation Orión in 2002, the quality of life of its inhabitants has improved so much that as of today, Medellín is one of those places that monopolizes the headlines of the world for positive news, with prestigious laurels such as : “Most Innovative City in the World in 2013” and “Best Place to live in 2020”, among others.
An Electoral Promise Comes True
In Colombia, Blockchain technology started gaining traction back in 2018, when then presidential candidate, Iván Duque Márquez publicly announced that these new technologies should allow for greater transparency in public finances and to provide opportunities to improve the quality of life of colombian citizens. At the time, the current president, stated his intention to promote this technology to minimize tax evasion and money laundering, through a healthy digital ecosystem.
Economic Landscape Prior to Covid19
In Colombia much like many Latin countries, there have been, historically, high levels of corruption, inequality, and multidimensional poverty. As a consequence, Colombian society has been divided into six categories called “Estratos”, where 1 and 2 are the poorest, 3 and 4 comprise people who generate an average income and 5 and 6 are those with the greater purchasing power.
Although the current quantitative situation in Colombia may not seem the most economically encouraging, this worsened with the arrival of the COVID-19 pandemic in March 2020, as the government had to impose a mandatory closure of many business to try and stem the curve of infections. This lasted on and off throughout 2020 and has continued through May 2021. It is estimated that the traditional economy contracted by at least 7 %, that, alongside the current minimum wage of just $290 USD a month, a per capita GDP of just $ 6,667.79 and an unemployment rate of 17.3%, this imposes new challenges to make up for the time lost.
After the decree that imposed a mandatory lockdown in the 32 departamentos of the country, in the blink of an eye, the unimaginable happened: more than 25 million Colombian workers were forced to stay at home in long confinement and without an income stream. The major concern was how people would be able to survive without the chance to work and earn a living.
The Government Announced Severe Measures to Reduce The Covid-19 Outbreak
In order to avoid an economic catastrophe, the government had to take urgent drastic measures. In alliance with the private sector, measures were taken to impose a moratorium on debts with banks and financial institutions and for companies to minimize layoffs and grant subsidies to the most vulnerable sectors of the economy, among other policies.
See policies here:
However, in Medellin optimism is always in the air as it is a city that hasn’t stopped for an instant; commerce is slowly rising again and people, complying with health security measures to various degrees, continue to fight every day for the livelihood of their families. It shows when you walk through the city and realize that despite difficulties they have always sought out ways to try to overcome their tough conditions.
Background of Bitcoin as a Virtual Payment System
Bitcoin was created in 2008 as an ambitious project to be a secure, digital and international system of exchange and payment. The exchange is carried out by a chain of blocks or digital wallets subject to the free supply and demand of investors. The primary difference between it and traditional fiat currencies is that there is no paper or metal to hold it nor a central or regulatory entity. Therefore, operations don’t have the support or control of any government or major financial institution.
2010-2021 Bitcoin Price Timeline
In April 2010 the price of one (1) Bitcoin (BTC) was just $ 0.003, mistrust and uncertainty reigned, in February 2013 the parity reached a value of $ 266 per unit, with an average daily growth of 5- 10%.
In March 2017, Bitcoin reached $ 1290, then in December it reached $ 19,783 and began to decline, which caused investors to panic for several years.
In December 2020 when the Covid-19 crisis was already global and the collapse of traditional economies was evidenced, Bitcoin showed that it is here to stay and exceeded the value of $ 21,444.27.
In February 2021 the price reached the historical maximum of $ 47,990 per Bitcoin. As of the publication of this article in May 2021, the price is around $55,000 USD per bitcoin, having surpassed $63,000 a few weeks ago before coming back down.
See graph in:
How Bitcoin and Cryptocurrencies are The Golden Opportunity to Boost The Economy and Social Equality in Colombia?
When the Covid-19 pandemic took away the notion of security and well-being, the world had to go back and revisit what “normal” meant. The vision that we had became too dangerous in the face of an invisible enemy that has killed more than 2.59 million people around the world with more than 117 million reported cases and billions of dollars in losses around the planet. We realized that many people who were prepared for years were able to continue working remotely and from a distance generating income to face the crisis. Call them lucky or visionaries, the fact is they were able to continue operating digitally and showed us that maybe we were missing something and that there’s certainly a new real economy that, although not tangible, is a great opportunity available to everyone.
Medellín Case Study - The Right First Steps
Medellín is not far behind, being one of the most progressive cities in Colombia. It has a Blockchain Center in the El Poblado area, which is dedicated to exchange knowledge and to develop and promote profitable and safe investment opportunities in the cryptocurrency ecosystem.
Additionally, enthusiasm for the digital financial system has also reached local authorities, who in alliance with private institutions created Rutanio, a Blockchain and token network that seeks to promote and facilitate the participation of entrepreneurs, consultants and professionals in the region. These are great signs of Medellín’s role in leading Colombia and even Latin America in the 4th industrial revolution.
The Mayor’s Office is promoting business innovation clusters in various areas to promote science and technology as a mechanism for personal and professional improvement for citizens. Financial support is provided through soft loans for entrepreneurs, Fintech and Start Ups in areas of social interest to innovate with services to the community, democratizing knowledge and giving young people and adults unique opportunities to get ahead and overcome social gaps.
Accordingly, companies in the Fintech sector have installed more than twenty ATMs in shopping centers to carry out operations with digital currencies, which makes Medellín one of the cities with the largest number of ATMs of this kind in Latin America. As is par for the course in LATAM, Medellín is at the forefront of new technologies.
These ATMs give users the option to buy or sell crypto in a simple, fast and secure way, using different payment methods, such as online transfers, debit and credit cards and other more traditional methods such as cash.
Life for Bitcoiners Can Be Easier in Medellín
In Medellín, you can currently buy prepaid cards from various businesses and services in exchange for Bitcoin and other cryptocurrencies, so now it will not be a problem to pay for your Netflix account or buy in stores and businesses with your cryptocurrencies.
It is no longer strange to enjoy your favorite dinner, get a hotel or a car and pay with cryptos. The thing is that cryptos are appreciating assets and that disincentivizes spending – especially discretionary spending. Why buy an expensive item that you don’t need if next month you could afford two of them for the same amount of BTC? However, diversifying your storage of value is always a good idea and spending cryptos on another appreciating asset, Medellín’s land and real estate market for example, seems to be the way to go. Luckily, Medellín offers great opportunities and prices and makes the exchange extremely convenient.
Use Crypto to Buy Real Estate in Medellín
Another example of Bitcoin investment in Medellín is buying rental property. Using a traditional payment method, there are many different price points and options to buy a rental property that generates an excellent ROI. You could use the place while you are in town, and rent it as soon as you hit the road. For a detailed breakdown of how this can work, including projected ROI and the costs involved, check out this article: Expected Returns For Medellín Real Estate Investing
However, most sellers will not accept Cryptocurrency as a form of payment. The majority of real estate is held by older Colombians, who will undoubtedly prefer a more traditional payment method.
Do you want to invest in real estate in Medellin using crypto? Contact Us now and I can show you a few apartments where the seller may be open to receiving crypto as a form of payment.
Bitcoin Digital Mining is Another Option to Make Money
If you want to enter the world of digital mining, which consists of validating and processing cryptocurrency transactions through computers connected to a network in exchange for remuneration in cryptocurrencies, you can hire experts in this area. There are companies that sell all the necessary equipment and they teach you from scratch how to do it. Also, energy costs should not be as worrisome as they might be in more developed countries, because the service in Colombia is quite accessible and inexpensive compared to other countries.
Financial Education in Cryptocurrencies From The Hand of Experts
In some official and private educational centers and companies there is a real boom on the subject of Bitcoin and cryptocurrencies, so it will not be complicated that when you come to Medellin, you register and attend a top notch specialized training.
More than 150 training events are held per year to provide the interested public with effective tools that allow them to successfully invest in Bitcoin and other cryptocurrencies.
In 2018, an important event called “Bitcoin Summer Fest” was held in Medellin, which was attended by thousands of people from all around the world.
The Future Of Cryptocurrencies in Medellín
One of the best things about cryptocurrencies and especially Bitcoin is its flexibility and growing acceptability. Unlike other currencies, its acceptance has no geographical borders; you can travel freely around the world and have exactly the same exchange value. This is a characteristic that encourages both investors and traders to increase the use of these coins.
In Medellín, there is a growing culture of crypto assets – it is an environment conducive to living and investing. To date, it is estimated that there are around 687 places where you can pay for products and services with cryptocurrencies, especially Bitcoin. Check some of them out at this website.
Are you interested in Crypto? Looking to invest in or reside in Medellín, Colombia? Leave a comment below or send me a message on whatsapp (+57) 317-523-3469 and we can continue the discussion.