Topic: El Salvador celebrate 21st of December 21 with 21 Bitcoin - page 2. (Read 479 times)

As long as they really want the goal for good, it's clearly very positive, but there is always a need for strict supervision because deviations can occur if not strictly monitored. but obviously I totally agree that what they are doing is really aimed at improving the country and they will still be fine and need not worry too much.

maybe it's just the communication that has not gone well so that there is no visible transparency, but because their intention is for improvement purposes, they can be sure that they are on the right path.

it's just a matter of how they have to run everything with the rules that are made strictly so that there is no misguided target that will occur later. but in principle what is done is for improvement and should be supported accordingly. hopefully bitcoin will change their economy for the better.

Indirectly they have benefited but indeed when talking about speculation now I think everyone has their own speculation about bitcoin and the truth is that until now nothing is really right and only bitcoin is able to answer speculators at this time.
But for them I'm quite happy because as you said, whether it's being held or partially sold they will still be in profit, on the other hand the longer they hold on to it the better it actually is for them.

El Salvador is already ahead of many other smaller countries that are currently facing economic challenges as they have gone a step ahead to invest in the future. I don't care at what price they bought Bitcoin as long as it is stored and held for a long time then its price will increase.

There’s really nothing to be questioning here, it’s already clear that they would continue to hold it, and as the price of Bitcoin continues to increase that would mean profit for them. Imagine that Bitcoin reaches $100,000 by next year as some analysts has been saying, that is going to mean about double of their investment. It will then be up to their government and whether they would want to sell the assets or maybe continue to hold it. Even if they should continue to hold it, it’s still not a bad idea because the value of Bitcoin will continue to increase in the future. So they have made a really good choice for investment.

Though the value bought might seem small for a nation, a few things hold. It was bought of no serious significance, just to add some more to there hodling. Though, I see what they are doing to be of some significant to the crypto space as, they've not had some negativism to the crypto instead, they buy out of benefits from the legalisation they've done on bitcoin. Its a plus for bitcoin and with time, other nations would see the need to bitcoin legalisation.

Talking about 21 bitcoins, in the early years of bitcoin none could imagine the amount of 21 bitcoin will be this much important to be mentioned in articles and people start talking about it. However, El Salvador has already shown us how they believe in bitcoin and use it as a hedge against the inflation rate. We all know El Salvador had some of the worst economic situations and worthless fiat currency but after these investments by their government, I expect to see surprising news about this country in a few years if they stay in this way.

He is not trading he is holding, nothing wrong with that... Anytime is as good as ever, as long as your vision remains long term. Some people just go with scheduled buys, no matter what the price is. This is a perfectly valid long term strategy. Also fitting in a country that is starting to pay wages in bitcoin, which happens at specific days of the month, no matter what the market price is. It will average, the variability is not a problem because what most employers do is pay the equivalent of "something else" in bitcoin at any given time, just like those purchasing things over there.

I believe there is a thread somewhere in this forum about, what if you purchase 1 USD equivalent of bitcoin everyday, with a comparison of the USD invested vs actual current USD if you sold those bitcoins.

Remember, all fiats, and their pegged altcoins, are designed to lose purchasing power over time, over the dogma of obsolete economic thinking that debt is king and infinite credit expansion is the way (its the cause of bubbles and crashes too, from the distortions to the economy this generates).

Of course they don't want you to keep your garbage money saved, that is the whole point. Thus the inflation is seen by them like the driving factor for you to use it. This is so wrong in so many ways i won't even start, just read the Austrian school of economics for better insight.

And then came bitcoin. Of course they are in panic, they are the cause of the problem. Might as well close all those useless central banks. The remaining banks should drop the fractional reserve ponzi scheme and be clear to their clients, if they want to keep existing that is.

You see, they wanted you to depend on banks. But guess what, you don't need banks anymore, if you want to use them its your choice, but its no longer required.

they are still at the forefront of this kind of adoption but on the other hand I really question their profitability as there is not even any word on how they are selling but there is already a profit there.
On the other hand, things like this are actually pretty good and I'm quite supportive of things like this because they're always at the forefront of this I think.
with this also apart from bitcoin they will be known by most circles and that's good enough for them

Yes, fingers are crossed to see what the investment will become in the next couple of years to come, I believe this move will positively impact the economy that other countries will be referring to El Salvador for its great economic transformation.

Yes its that Bitcoin exist in decade but that 65K$ is only attain within a period of 1.5 years after this whales like El Salvador, Microstrategy and Grayscale appear and start accumulating huge chunk of Bitcoin. The price will gonna reach this high if this big player didn't enter. Its still a good thing that there's already a real reason why Bitcoin price pump compared before that pure speculation  and price is on bubble. So let's not take away the credits from big players especially El Salvador.

You will not gonna like what will happened next if this whales starts to take profit and produced a chain reaction.

Well looks like you have been quite involved in studying the deflationary economy, would love to know from you that how you intend to solve the problem of the deflationary spiral in a deflation-based economy? If I know my purchasing power would improve tomorrow, wouldn't I just defer my purchase to tomorrow every time? Basically deferring the overall economic production too, moreover, people would eventually stop spending on their "wants", will only spend on their needs. So if in such an economy, where everyone is just "Saving" and not Investing, how will economic growth take place?

Read my reply, the 3rd message, it's actually 1200 coins and they would need to gain $150k in price each year just to cover the annual aid Salvador receives from the US for regional and humanitarian assistance.
In order for Salvador to become the richest country in the world they would need to buy 1 million bitcoins and each of those to be worth 126 million because that's the total wealth, the richest country has right now, 126 trillion.


I said before, once he started throwing projects after projects it turned from a nice step forward that would trigger adoption to a race on who will be the first to land in prison with these schemes. Now, if he would be using those gains from the trust fund to buy more coins, which would raise the value of the trust allowing him to buy more coins, I have a feeling this is going to turn into a fractional reserve scenario.
As much as I dislike this guy and his schemes, unfortunately now I have to actually hope this house of cards will not collapse, with so much attention he has drawn from the media if this goes bust every single one of us is going to get a free colonoscopy from the fallout.

I don't think this move is about success or failure of Bitcoin. Bitcoin financial system is live for one decade and without support of any big economic power bitcoin mange to hit 65K$. Even if El Salvador withdraw its decision on bitcoin legal tender even then bitcoin wont be affected. Can you see any change in bitcoin price since the El Salvador announces its decision of using it as legal tender?

As they have adopted Bitcoin literally then this must be a normal occasion in their part though 21 bitcoin is a good one time Buying .

El Salvador will continue this Journey as they know how long will this be beneficial in  their part.

That is a Big number to consider ..

By playing along dangerously with the numbers, in a manner similar to fable the milkmaid and her pail:

When he announced the Pet Hospital back in October, he twitted an explanation on where the funds were coming from. The tweet (see https://twitter.com/nayibbukele/status/1447017312893161478 and scroll down) is in Spanish, so I‘ll summarize the core parts in English (freely translated, with my minor added comments):


There we go, the perfect potential example of the former part of to fable the milkmaid and her pail. While BTC goes up, they extract USD from the trust, keeping the book value of the Trust near the legal allocated value. The problem is, that BTC could go down, and activate the second part of the fable …

People don't realize this but El Salvador will soon become the rishest country of the world. Think in a way that they are holding over 20,000 bitcoins and if each bitcoin reaches over 100k, thier county reserve will be doubled.

Don't want to be the wet blanket but it's really the El Salvador government celebrating though, not the people.

I think the actual Bitcoiners will look with envy at some of their (not immediate) neighbours. Supermarkets in Mexico and in Venezuela are accepting Bitcoin for a hefty discount. Places scattered over Argentina as well, and advocates moving all around the country teaching people and educating.

Not saying one way is better than the other, just that one way comes from grassroots action, the other viewed as another decision pushed down people's throats.

Oh damn, didn't mean to start my day so negative haha.

That's definitely correct. In some news articles I have read some 5 year plans. For example they are building Bitcoin City and a lot of other infrastructure that won't even be completed in short term.
Besides El Salvador is among the poor countries but about $60 million in bitcoin for a country with $25 billion GDP (0.24%) doesn't look that big to be honest.

In any case this is a very exciting experiment to watch over the coming years and see how this poor country is going to be like in like 5 to 10 years from now. This could provide good information for other countries with bigger and better economy to decide whether they want to start adding bitcoin to their reserves.

The bonds are one thing and that is another mess altogether
They claim to sell one million bonds and use half of the funds to build a city that is going to cost 17 billion, which is another magic trick that only Bukele knows how to perform. As for the hospital that is currently being constructed he clearly said it's going to be paid from the profits from BTC so how has he realized 4 million in profits?


It doesn't matter where the ATH was, it matters where he bought it, and wow, what a surprise, the only clue for these are his tweets.
His lowest buying point would be 46k if we would go by his tweets with a 200 bitcoin purchase, that barely negates the other buys and there is no way you could pull 4 million in profits from this tiny spread when he claimed he started construction unless he sold at the tip.
But we will never know as there is no actual proof of anything other that tweets, they could hold now 100 000 coins or 21 or none, there isn't a single official number coming from an official document, not about the purchases, the money spent, the number of transactions on Chivo, the number of funds circulating there, the amount of hash rate they have in their mining operation, nothing expect an avalanche of laser eyes.


Yeah, unfortunately, propaganda is one thing, reality is another:

Critics ask IMF to block financing for El Salvador


IMF Executive Board Approves a US$389 Million Disbursement to El Salvador


Asking for billions in loans is probably the new way of resisting, who knows.

Wikipedia indicates that Bukele will remain President of El Salvador until June 2024, approximately around the time of the next halving event. I think he will be comfortable waiting for the price to explode at some point during his tenure. If it does, he will be known as one of the boldest, shrewdest, and most remarkable Latin American politicians of all time. Michael Saylor of Microstrategy is making a similar bet, albeit in a corporate capacity.