TL; DR failure
- El Salvador acquires an additional 100 bitcoins despite lower virtual asset prices.
- The country is showing signs of HODL its digital assets.
- The country is planning to build a bitcoin city.
The leader of El Salvador stated that his country has gained 100 bitcoins after the reduction of assets. Vice President Buckel believes that this investment is critical to the growth of the country’s digital currency stocks. However, the deal has sparked criticism of Bukele’s approach.
Bitcoin is the world’s largest digital coin. On Friday, it fell to $ 54,377, down about 7.8 percent. The lowest rate since October 12. Again, digital assets were the most significant one-day drop since September 20th. Bitcoin is down more than 20 percent from its most recent record of $ 69,000.
In September, El Salvador chose Bitcoin as its legal tender. This action attracted the attention of the world media. But opponents criticized the move as populist. They said it would have devastating effects. In addition, foreign financial banks were never affected.
El Salvador continues to HODL
On his way, President Buckle announced the purchase throughtwitterYesterday. Despite the declining nature of bitcoin this week, the president followed suit. He saw an opportunity to gather.
One month ago, Bukele announced another bitcoin purchase. The investment has been slightly larger since the country sought 420 bitcoins. El Salvador bought Bitcoin after about $ 60,000. Currently, the government has more than 1,000 bitcoins.
The purchase provoked strong reactions because there are people who know the move is right. However, some consider it an irresponsible act.
One of the people who was not affected was the anti-bitcoin forms of gold.Peter Schiff. Reacting to the tweet, Peter said it was a sad move. Morso, to the citizens of El Salvador. He believes the country is reducing its losses and selling its bitcoins.
So far, El Salvador has only revealed plans for HODL. Following the acceptance of Bitcoin as a legal tender, Bukele outlined several Bitcoin investment plans. But, what followed was a series of price reductions. However, as rates rose in October, the country used bitcoin to build a pet clinic.
El Salvador is committed to continuing bitcoin
El Salvador is running large programs with virtual assets. A few days ago, their leader announced his intention to develop a bitcoin city. They will build the city with $ 1 billion in volcanic bonds. Part of the capital is set aside to buy bitcoins. However, the rest will support bitcoin mining.
This strategy underscores El Salvador’s confidence in Bitcoin. Undoubtedly, the value will increase soon. When it grows, the revenue from holding and extracting bitcoins will pay off the bonds. To date, Bitcoin has had a 100% annual price increase since 2013.
President Buckle is committed to his story because he supports Bitcoin. He believes that Bitcoin makes it easier for citizens abroad to share their payments. He also believes that bitcoin will increase financial participation and investment.