Brazil's constitutional amendment may boost Bitcoin demand

Various geopolitical and economic factors can affect the demand for Bitcoin, and recently, there have been many events that play this role, including the Greek economic crisis, Brexit, the continued depreciation of the RMB, the US presidential election, the Indian government's abolition of large-denomination banknotes, the Venezuelan economic collapse, etc. The implementation of Brazil's new constitutional amendment may soon join this list.

The implementation of the new constitutional amendment will effectively freeze the Brazilian government's spending on basic public welfare programs, including health, education, pensions, infrastructure and defense. These measures are expected to last until 2037, which may lead to more severe inflation and economic difficulties for the Brazilian people.

It is reported that protests and conflicts have broken out in at least 12 states across Brazil.

Protesters believe that the austerity plan is a complete exploitation of the poor, and that many of the spending cuts are related to the livelihood and future of the people, such as health care and education, which are already underfunded.

As the Brazilian government attempts to limit spending to stimulate the economy, it may soon introduce some stringent reforms that could hinder free movement within Brazil and across its borders. These potential reforms could help Brazilians embrace Bitcoin as an alternative to fiat currency.

Brazil's leadership intends to offset the negative impact of the new tough policies through real taxation and amortization of debt. Even banks and financial companies will be instructed to reduce the time of various operations and lower fees.

As of now, the Brazilian market has been a positive factor for the Bitcoin industry, but at the cost of economic difficulties faced by the people of the country. According to new developments, the coming year will be very favorable for Bitcoin, and the price of Bitcoin may sprint towards $850 in the first few months. In addition to the Brazilian market, India and Venezuela are also two promising emerging markets for Bitcoin.