The Savior is since September last year the first country where bitcoin (BTC) is legal tender. President Nayib Bukele is an avid supporter of bitcoin and therefore regularly buys the dip, but what does this mean for the residents of El Salvador?
Buying the dip
Last night’s bitcoin crash has caused the BTC price, at the time of writing, to fall below $43,000. Bukele has often opted for Twitter announced that El Salvador added bitcoin to its balance sheet, at the time of a price correction. Buying the dip, as the term is called in the crypto world, however, the country has not done any harm to date.
The average price at which El Salvador bought bitcoin is said to be just under $50,000. With the current BTC rate, this means that the portfolio of the South American country is down by 15%. According to our calculations, El Salvador now has 1,391 BTC in its treasury. Although President Bukele undoubtedly has great plans with his bitcoin policy, but residents are more or less forced to participate in this. If bitcoin crashes further, the residents of El Salvador could be in trouble, at least in the short term.
Criticism of the policy
President Bukele’s policy is by no means received positively by everyone. There are plenty of people who are critical of the policy, including Peter Schiff. Peter Schiff is known as a bitcoin critic and regularly takes to social media to express his opinion. Also this time, Schiff let his followers know on Twitter what he thinks about it:
Thanks to @nayibbukele the poor nation of #ElSalvador is now even poorer after blowing millions on #Bitcoin. El Salvador ranks 94th on the Index of Economic Freedom. El Salvador’s young President should provide freedom to his people, not forced participation in a pyramid scheme!
– Peter Schiff (@PeterSchiff) January 6, 2022
However, Nayib Bukele himself remains positive about the future of bitcoin. Earlier this month, for example, he predicted that the price of bitcoin this year to $100.000 will go. In addition, the president wants to start construction on the Bitcoin City.
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