Governments shouldn't use taxpayer's money to participate on a highly speculative and volatile market, that's like common sense.
Bukele reminds me of Trump, you have one of the poorest countries in the world to take care of, the 4th wave of Covid knocking at the door, and the economy hit worse than many by the global price increases as its energy-dependent, and what do you do, tweet about buying the dip, which turned out to actually be a case of catching the knife. Looking at how he is rushing things, how he makes every time claim like this, all the tweeter floods, to me seems like rather than trying to promote usage he is actually using the Bitcoin craze for his personal agenda.
This is my hypothesis, posted on another thread a while ago:
I haven’t seen it around clearly exposed, but I figure that those 700 BTCs are meant to back the existing BTCs within the Chivo system, and not so much intended to hold as part of the countries reserves. With now over 1,1 Million Chivo wallet users, presumably nearly all will have redeemed their 30$ in bitcoin voucher, so the 700 BTCs kind of backs current redemptions (roughly, give or take).
This would be a good thing if the buy is triggered by the activity in the wallets.
The bitcoins in Chivo are just some numbers in an app as long as you don't try to cash out, so them buying coins means that they don't have that much need of US dollars, people are keeping coins and not rushing to the ATMs to withdraw those 30$. If they need BTC it means an unexpectedly large amount of people are moving their coins in some other wallets and they need on-chain Bitcoins.
