TL;DR Breakdown
- El Salvador acquires an extra 100 bitcoin despite the drop in price of the virtual asset.
- The country is showing signs to HODL its digital assets.
- The nation is planning to build a bitcoin city.
El Salvador’s leader stated that his country had acquired 100 bitcoins after the asset took a dip. President Nayib Bukele believes that the venture is vital in growing the nation’s crypto stake. However, the transaction heightened criticism about Bukele’s approach.
BTC is the world’s largest digital coin. On Friday, its value went down to $54377, about a 7.8% drop. The lowest since October 12. Again, the digital asset was eyeing its most significant one-day fall since September 20. Compared to its recent all-time high of $69000, bitcoin has seen more than a 20% drop.
In September, El Salvador chose bitcoin to be their legal tender. The move attracted global media attention. But, the opponents criticized the move as populist. They said it would have devastating effects. Besides, external financial banks were never impressed.
El Salvador Continues to HODL
In his way, president Bukele announced the acquisition via Twitter yesterday. Despite the bearish characteristic of bitcoin this week, the president went for it. He saw an opportunity to stack.
A month ago, Bukele announced another bitcoin buy. The investment was a bit larger since the country went for 420 bitcoin. El Salvador bought after the bitcoin price went down to around $60000. Currently, the government holds more than 1000 Bitcoin.
The acquisition led to severe reactions as there are people who see this as the right move. Yet, some see it as an irresponsible move.
One person who wasn’t impressed is the anti-bitcoin gold bug, Peter Schiff. While reacting to the tweet, Peter noted that the move was a sad one. Moreso, to El Salvador citizens. He believes that the country will cut its losses and sell its bitcoins.
So far, El Salvador is only revealing plans to HODL. After adopting bitcoin as a legal tender, Bukele stated several bitcoin investments plans. But, what followed was a series of price dives. Even so, as the rates shot up in October, the country utilized bitcoins proceeds to construct a pet clinic.
El Salvador pledges continued devotion to bitcoin
El Salvador is making big plans with the virtual asset. A few days ago, their leader stated intentions to develop a bitcoin city. They will build the city with a $1 billion volcano bond. Part of the capital is designated to buy BTC. Yet, the rest will go into bitcoin mining support.
The strategy outlines El Salvador’s confidence in BTC. Undoubtedly, the value will soon appreciate. When it grows, the proceeds from bitcoin holdings and mining will repay the bonds. So far, bitcoin has had a constant price appreciation of 100% yearly since 2013.
President Bukele is sticking to his narrative as he champions bitcoins. He holds that bitcoin makes it easier for citizens living abroad to share their payments. He also believes that bitcoin will foster financial inclusion and investments.
