The Salvadoran President, Nayib Bukele tweeted early Thursday that his government had taken advantage of the recent fall in Bitcoin (BTC) prices and added 420 BTC to the country’s reserves..
“It was a long wait, but it was worth it”, tweeted, “We just went shopping in the fall!”
Shortly thereafter, tweeted: “We are already making a profit with the bitcoin we just bought”. In the time between the tweets, the value of the country’s Bitcoin grew by about 0.4%, or $ 100,000.
How do we make a profit if 1 #BTC= 1 #BTC?
We have a trust fund in USD, but the trust fund is funded by both USD and BTC.
If the BTC portion appreciates against the accounting currency (USD) we can withdraw some USD and leave the trust with the same amount.
to???? Nayib bukele (@nayibbukele) October 27, 2021
How do we make profit when 1 BTC = 1 BTC?
We have a trust fund that is accounted for in USD, but the trust fund is funded by both USD and BTC. If the BTC portion increases in value compared to the currency of account (USD), we can withdraw some USD and leave the fund with the same amount.
Many curious people on the internet have speculated about the importance of El Salvador’s purchase of 420 BTC, a popular slang term for marijuana.
“Good! Use cannabis!” Commented Reddit user u / theylie86, another popular term in marijuana culture.
“I’m starting to believe that he does it on purpose,” speculated Reddit user u / EGarrett.. “Actually, now that I look at it, it was born in 1981, so I probably will. Curious to see the results of Millennials beginning to inherit the world “.
It is absurd for the United States to be ousted from El Salvador in order to own more bitcoin.
Our national policy should be to match every single BTC purchase made by a foreign government.
The next competition will not be the number of atomic bombs, but how much bitcoin you own.
to???? Pomp (@APompliano) October 27, 2021
It is absurd that El Salvador should outperform the United States for those who own more Bitcoin. Our national policy should be to match every single BTC purchase made by a foreign government. The next competition won’t be the number of nuclear weapons, but how much bitcoin you own.
The value of 420 BTC is about $ 24.6 million. The purchase brings the total amount of Bitcoin in the country to 1,120 BTC, whose value is approximately $ 87.4 million. The land has an estimated average purchase price of just over $ 53,300.
El Salvador bought two lots of 200 BTC for the first time on September 6 of this year and acquired another lot of 150 BTC a day later when it was also the first country in the world to make Bitcoin legal tender. On September 19, El Salvador bought another 150 BTC, bringing the country to a total of 700 BTC.
Nevertheless, Other observers were less positive about the recent purchase and expressed concern about the safety of the country’s Bitcoin holdings..
Twitter users Dolo Mite responded to a tweet from Anthony Pompliano spreading the news of the purchase of 420 BTC. ask: “Who has your private key?“The user also asked what would happen if the nation were hacked.
El Salvador’s central bank chief Douglas Rodríguez told Bloomberg earlier this month that the Latin American country continues to invest in the expectation that Bitcoin will soon lose its reputation as a speculative good and become a legitimate payment system.
“We don’t see any risk. Maybe upside risks,” said Rodríguez., adding that Bitcoin “will become a payment system, a system of financial inclusion”.
Bitcoin’s price recently took a downtrend, hovering around $ 58,570 after hitting an all-time high of $ 66,976 earlier this month.. Despite the decline, the cryptocurrency has risen 20% since September 7th.