El Salvador Bought 410 Bitcoin During Market DropJanuary 23, 2022 2:55 pm
The country of El Salvador recently just released the news that they bought 410 bitcoin during the recent Bitcoin drop to almost $36k.
The president of El Salvador, Nayib Bukele, commented on Twitter that the country would be taking advantage of some of the cheap prices as the nation has had a history of utilizing Bitcoin as a percentage of it’s overall treasury portfolio in the past.
Currently, the nation holds a total of around 1500 BTC and has plans to issue a $1 billion 10 year bitcoin bond sometime later in the year 2022.
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El Salvador President Nayib Bukele, who’s known to “buy the dip” amid Bitcoin selloffs, didn’t disappoint crypto-enthusiasts on Friday https://t.co/Q2xfDtIdHQ
— Bloomberg (@business) January 22, 2022
To provide some context into the country’s history with blockchain and crypto, Bitcoin had recently became legal tender in El Salvador last September as the country’s legislature had passed a bill called the Bitcoin Law.
El Salvador adopted BTC as a legal tender in September 2021, as a means to overcome catastrophic inflation amid the weakening spending power of the nation.
Since the adoption as a legal tender, the country has so far, strategically accumulated 1,801 BTC over the past four months.
El Salvador adopts a ‘buy the dip’ strategy when it comes to accumulating Bitcoin. Anytime there is a fall in the price of Bitcoin, the President announces the accumulation of more Bitcoin into the nation’s reserve.
The latest purchase is currently the cheapest acquisition for El Salvador ever since the country adopted BTC as a legal tender.
With BTC trading just above the $36,000 mark and the resultant sell-off, Bukele believes that “some guys are selling really cheap,” supporting his long-term vision of mainstream Bitcoin adoption.
Bukele had also proposed initiatives within the country regarding Bitcoin adoption as well as general cryptocurrency mining.
It was announced recently that the government is already working on creating the necessary infrastructure to support mass crypto adoption which includes the creation of a state-issued wallet.
The state issued wallet would be named Chivo where it would be the primary utility to distribute crypto funds from.
Other news within the country include plans to create its own “Bitcoin City” which is a new development that has happening at the base of a volcano.
The project has already been funded around $1 billion in bitcoin bonds as of the latest report.
Crypto has also been seen and used as a financial utility to help fund much needed infrastructure projects that are much needed around the country.
This includes funding for new hospitals in the nation’s capital in San Salvador as well as utilizing any extra Bitcoin funds that the government has to be able to fund the construction of 20 new schools.
Public and online reaction to the country “buying the dip” has been well received by the crypto enthusiast community.
“I think I might have miss [sic] the dip this time,” the country’s 40-year-old President Nayib Bukele wrote on his Twitter account on Jan. 14.
A week later, Bukele wrote that he actually “didn’t miss it” and that the country he leads “just bought 410 #bitcoin for only $15 million.”
The tweet quickly exploded and gathered almost 20,000 likes in an hour after being posted. Bitcoin, which nearly topped $70,000 in November, has now lost more than 40% of its value.
Given cryptocurrency’s general trend upwards (over the last five years, it rose by 3,873.65%), many are speculating whether now is the time to “buy the dip.”
El Salvador continues to buy bitcoin frequently, with a new purchase worth $15 million.https://t.co/GqhA96984C
— CryptoPotato Official (@Crypto_Potato) January 22, 2022
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