Nayib Bukele, President of El Salvador, tweeted earlier today that his government took advantage of the recent Bitcoin price fall and added 420 BTC to the nation’s stash.
He tweeted that “It was a long waiting, but it was worth it”, and “We just purchased the dip!”
He tweeted shortly after: “We are already making a profit from the #Bitcoin that we just purchased.” In the span of these tweets, the country’s bitcoin value increased by approximately 0.4% or $100K.
How can we make a profit when 1 #BTC = 1 #BTC? Although the trust fund is accounted in USD, it is funded with both USD and BTC. We can withdraw USD from the trust and leave it with the same amount if the BTC portion of the trust revalues in relation to the accounting currency (USD).
— Nayib Bukele (@nayibbukele) October 27, 2021
Many online observers have speculated about the significance of El Salvador buying 420 Bitcoin, which is a common slang term for marijuana use.
“Nice!” “Blaze it!” said Reddit user theylie86. They used another term popular in marijuana culture.
Reddit user EGarrett speculated that “I’m beginning to believe he is doing this on purpose.” “Actually, he was probably born in 1981. It’s funny to see how millennials are starting to inherit the world.
It is absurd to see the United States being outcompeted in El Salvador’s battle for bitcoin. Our national policy should be that we match any foreign government’s purchase of bitcoin. The next competition will not be the number of nukes you have, but how many bitcoins you own.
— Pomp (@APompliano) October 27, 2021
The total value of four hundred and twenty Bitcoins is approximately $24.6 million USD. This purchase brings the total Bitcoin amount to 1,120 BTC. That’s approximately $87.4 Million USD. The average price for purchasing Bitcoin in the country is just over $53,300.
El Salvador purchased two batches 200 BTC in September this year. It then grabbed another batch 150 BTC the next day. This was when it became the first country to legalize Bitcoin. El Salvador purchased 150 more bitcoins on September 19, bringing its total holdings to 700 BTC.
Others were not so positive about the purchase and expressed concerns over the safety of the country’s Bitcoin holdings.
@dolomiteHEX tweeted a response to President Trump’s tweet. The user asked, “Who holds their personal keys?” Also, what would happen if the country were hacked.
@EnocWatcher also shared his concerns. He suggested that Bitcoin bought with taxpayer money should be kept in a publicly-disclosed entity.
Continue reading: Uphold executives say crypto will be most beneficial to Latin America.
Bloomberg was informed earlier this month by Douglas Rodriguez, the chief of El Salvador’s Central Bank, that Brazil continues to invest in Bitcoin with the expectation that it will lose its reputation for being speculative and be accepted as a legitimate payment system.
“We don’t see any risks.” Rodriguez suggested that there might be upside risks. Bitcoin will “become an electronic payment system, and a financial inclusion system.”
After hitting an all-time high of $66,976 earlier in the month, Bitcoin’s price has fallen to $58,570. Despite this dip, Bitcoin is up around 20% since September 7.
Eileen Wilson –Technology and Energy
My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.