Cointelegraph Team
Cointelegraph
The recent purchase brings the Latin American nation’s stash to about 1,120BTC.
The President of El Salvador, Nayib Bukele tweeted earlier today that his government has taken advantage of the recent Bitcoin price drop and added 420 additional BTC to the nation’s stash.
“It was a long wait, but worth it,” he tweeted, “We just bought the dip!”
Shortly after he tweeted: “We’re already making a profit off the #Bitcoin we just bought.” During the time between the tweets, the value of the country's Bitcoin grew by around 0.4% or $100K.
How do we make a profit if 1 #BTC= 1 #BTC?
— Nayib Bukele (@nayibbukele) October 27, 2021
We have a trust fund accounted in USD, but the trust is funded by both USD and BTC.
When the BTC part revalues in comparison to the accounting currency (USD), we are able to withdraw some USD and leave the trust with the same total.
Many onlookers online have speculated on the significance of El Salvador purchasing 420 Bitcoin specifically, which is a popular slang term for marijuana consumption.
“Nice! blaze it!” commented Reddit user theylie86, using another popular term in marijuana culture.
“I'm starting to believe he's doing this on purpose,” speculated Reddit user EGarrett. “Actually, now that I check he was born in 1981 so he probably is. Funny to see the results of millennials starting to inherit the world.”
It is absurd that the United States is being outcompeted by El Salvador for who owns more bitcoin.
— Pomp (@APompliano) October 27, 2021
Our national policy should be to match every single BTC purchase that is made by a foreign government.
The next competition won’t be number of nukes, but how much bitcoin you own.
Four hundred and twenty Bitcoin is worth about $24.6 million USD. The purchase brings the country’s total amount of Bitcoin to 1,120 BTC, which is worth about $87.4 million USD. The country has an estimated average purchase price of just above $53,300.
El Salvador first purchased two batches of 200 BTC on September 6 this year, snatching up another batch of 150 BTC a day later, when it also became the first country in the world to make Bitcoin legal tender. On September 19, El Salvador bought another 150 BTC, which brought the country's total holdings to 700 BTC.
However, other observers were less positive about the recent purchase, expressing concerns over the security of the nation’s Bitcoin holdings.
Twitter user @dolomiteHEX replied to the President’s tweet asking, “Who holds their private keys?” The user also asked what would happen if the nation were to be hacked.
User @EnocWatcher shared these concerns, adding that Bitcoin purchased using taxpayer money should be stored in a publicly disclosed entity.
El Salvador’s Central Bank chief Douglas Rodriguez told Bloomberg earlier this month that the Latin American country continues to invest under the expectation that Bitcoin will soon lose its reputation as a speculative asset and become a legitimate payment system.
“We don’t see any risks. Perhaps, upside risks,” Rodriguez said. Bitcoin will, “become a payment system, a system for financial inclusion.”
The price of Bitcoin has recently taken a downwards turn at $58,570 after hitting an all time high of $66,976 earlier this month. Despite the dip, the cryptocurrency is still up about 20% since September 7.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Ripple holders' profit taking hits a 19-month high as XRP price shoots up by 42%
XRP price has performed beyond expectations and has marked a multi-month high, restoring confidence in its investors. These holders have also made the most of the situation and turned to sell, which could backfire on the price action soon.
Decentraland Price Forecast: What to expect from MANA as Metaverse Fashion Week kicks off
Decentraland price (MANA) has identified critical support on day one of the Metaverse Fashion Week. The token is trading horizontally on the four-hour timeframe as bulls push to break above a descending trendline.
Ethereum devs confirm withdrawals to begin on April 12; Here's what to expect from ETH price
Ethereum is on the verge of bringing about one of the biggest upgrades to the blockchain since the Merge. The arrival of withdrawals has been anticipated for a long time now, however, it may not be as lucrative for Ethereum price as one might expect.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Market woes threaten bullish potential, XRP is undeterred
Bitcoin has reclaimed above $27,000, but increasing market volatility threatens the leg up. Ethereum faces critical resistance at $1,819 as investor sentiment suggests liquidity issues. Ripple reaches multi-month highs amid lawsuit-related optimism.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.