For me, the most potent policy of El Salvador was to reduce crime in the country. The current Haiti gang violence is a typical example of what was happening in El Salvador before the government of Nayid Bukele took over. Violent gangs were in control of the country before he took over.
Without peace, no investor will consider putting money in the country. Citizenship by investment policy would never be attractive if the country was not safe. The country has experienced an increase in the rate of foreign tourists thanks to the crackdown on violent gangs. We are hoping that Bitcoin will reach the $100k mark but it seems that El Salvador will not be selling its Bitcoin holding anytime soon. The country will seek other means of fulfilling its financial obligations to the IMF.
Bukele's position is very clear, after he made the Bitcoin wallet public, a few days later he announced that he would continue to buy one Bitcoin every day. In my opinion, this is the right direction, I mean the goal is to increase the number of bitcoins, but I may not agree that this should be done now, when bitcoin has increased so significantly in price.
Of course, if you consider that the price will reach 100k, and I’m almost sure of this, then buying now also makes sense. At one time, I stopped buying when the price reached 30k, now I think that perhaps I stopped early, but this was my strategy and I will stick to the original plan until the end of the bull run.
For Bukele, this is all perceived differently, because he buys bitcoins not with his own money, but with taxpayers’ money, which is much easier to do and, of course, it is very important that in the end he does not think that these are his bitcoins, but understands that they belong throughout the country, and to every citizen of El Salvador. In any case, Bukele is doing the right thing, he is accumulating bitcoins and one day this may help El Salvador gain higher status.
I am still bothered by the 1 bitcoin per day idea.. even though there is some symbolism to it, but it is not as practical as either measuring in terms of some dollar amount or maybe measuring within a percentage of the countries revenues. ~Snip
It is true, until now Bukele has made major changes or rotations in El Salvador. Which started with the arrest of an entire armed gang in El Salvador.
More than 64,000 suspected criminal gang members have been arrested by El Salvador authorities in an effort to combat thuggery.
Source: https://www.bbc.com/indonesia/majalah-64781862This is clearly an action that is very rarely carried out by a president or leader of a country anywhere. So you could say that the actions taken by Nayib Bukele against gangsters in El Salvador could be said to be quite extreme.
But despite this, El Salvador is now a safer country than before.
Apart from that, regarding Nayib Bukele's plan to buy 1 bitcoin per day, perhaps this statement cannot be fully justified. The reason is that this statement is still unstable considering that the price of bitcoin is currently experiencing an increase. Meanwhile, Bukele said he would buy 1 bitcoin per day when bitcoin was cheap.
The President of El Salvador, Nayib Bukele, announced on Twitter on Thursday, November 17, 2022 that his country will purchase one bitcoin every day.
Source: https://www.liputan6.com/amp/5128803/presiden-el-salvador-nayib-bukele-sebut-bakal-beli-1-bitcoin-setiap-hariIn that year the price of bitcoin was quite far from what it is now. So you could say that that year Bukele bought 1 bitcoin with tax money from the people of El Salvador.
However, if Nayib Bukele plans to buy 1 bitcoin per day with taxes coming from the people of El Salvador now. In my opinion, this action could be said to be too hasty. Because as JJG said, tax money is usually used for certain needs in that country (El Salvador). Such as to repair damaged roads, damaged schools, or for other costs in that country (El Salvador). And in my opinion, Nayib Bukele cannot completely avoid this (state development costs). Because of course in a country there will always be things that need to be addressed and improved. Therefore, tax money obtained from the people in El Salvador will definitely be used for needs in El Salvador. And the rest is then used to buy bitcoin. Maybe that's how I understand it from my perspective.
You take my post and you twist it into your seemingly anti-Bukele agenda...and largely you seem to be taking somewhere close to the exact opposite position as me in terms of the extent to which Bukele might be overly aggressive in his investing into bitcoin rather than the ways he is spending in other areas on behalf of the taxpayers. I did not even suggest anything in regards to other ways in which government funds should be used - outside of mentioning that Bukele's amount of investment into bitcoin is pretty whimpy, since it is largely not even 1% of the government's general revenues..... and after 2.5 years investing into bitcoin, he still has barely accumulated 5% of the annual budget in bitcoin. - and some of that value is due to bitcoin's appreciation rather than an amount invested into bitcoin.
So you seem to be suggesting that bukele should be investing and/or spending in other ways (which personally seems like nonsensical claims that lack evidence), while I suggested that Bukele could be more aggressive in the investment of more funds into bitcoin without hardly feeling a dent in terms of disadvantages to El Salvador's current spending and being able to have great potentialities for profits and more options into the future, which is the reason that a lot of folks invest, and institutions and governments can be considered in similar ways.
Surely investing into bitcoin or investing in other ways rather than spending on government services is a choice in regards to spending now (or investing now into certain things or other things that have trade-offs) versus having more options to be able to spend more later - which surely are the kinds of trade offs that individuals make and the leaders of institutions and/or governments are taxed with representing the interests or their shareholders and or their citizen's.. including in the realm of investing and/or deferred gratification that may or may not end up paying off... Probably Bukele is so popular based on some of the trade offs that he is making and El Salvador citizens seems to be overwhelmingly quite satisfied with the various ways that he is exercising discretion on behalf of the citizens.
Of course, in this forum many of us are bitcoiners so we believe in the investment into bitcoin including figuring out proper balances that are likely different for each of us, even though many of us will still have parameters that are comparable in terms of measuring things that we might want now versus what kinds of things we might be able to defer, and most likely I am suggesting that Bukele and/or his government could be multiple times more aggressive in the investment into bitcoin purchases and still end up being a responsible fiduciary and/or representative of the people. I am saying that Bukele seems to be whimpy in regards to his bitcoin investment in order to offset when others are making proclamations that he has too many BTC blah blah blah. .which does not seem to be true, even though he did suggest that the public wallet that he shared with around 5.6k bitcoin did not represent all of El Salvador's bitcoin holdings.
People conclude that Bukele has purchased a lot of bitcoin, and my argument is that from the way that I analyze allocations, the amount remains pretty damned whimpy, relatively speaking even if they happen to be a government rather than an individual or and institution.
After Halving i am pretty sure BTC value will go back to 38-40K around or may be down.
I can't go with the prediction you made. The candle that made Bitcoin rise is not the same as in previous years. However, the way Bitcoin has been growing this season, it seems that Bitcoin will not go below $50,000 before and after the halving. When Bitcoin dropped from $74k to below $60k I didn't feel upset because I thought Bitcoin would only go to $50k but the market bounced back to $68k. If the market goes up from here I think Bitcoin could go to $80k before the halving. But if you want to invest in bitcoins hoping for your predictions then I think you may not be successful in investing.
Just try to open up for some possibilities since its not impossible to happen. We never though that we experience a huge dump before but it happen and what's more important there is we are prepared to accumulate since this is the best thing we could do at that time since for so many times it proven that those people which accumulate at lowest point of bitcoin will always get rewarded as long as they have long patience to wait for long term.
Sure in the short-term a lot of us are going to feel better for buying on dips, yet if we are really in for the long run, it may not make a whole hell of a lot of difference whether we buy more BTC at $65k or if we end up being able to catch a dip down to $61k or some lower point, especially given the trade-offs that we have hardly any clue regarding whether or how far such dips will happen. They may or may not happen, so it is likely better to have a more solid plan regarding just buying regularly rather than trying to figure out the extent to which there is going to be more dip or even trying to perfect the level of dip because many times those folks trying to perfect the dip may well not be buying as frequently or as much as they should be buying because they are spending more time waiting rather than buying.
But if the price won't dump at that figure then its still fine as long as we are ready for any possibilities and we have money to spend for investment so for sure waiting game we are on is truly worth it after all.
Anyone who has a regular income can just buy bitcoin regularly,, and some of that could be somewhat automated and other parts could be manual buys, so I don't see where the waiting comes into play except to realize that it takes a whole fucking long time to build up an investment, so it can take time to have enough salary to be able to buy as many BTC as you would like to buy.
El Salvador's President Naib Buquel has said his country will continue to buy 1 bitcoin a day until the price of bitcoin becomes 'unaffordable' with fiat currency.
That's a very good move. While it's true that such a low investment is nothing for a country with 6.5 million population, it's still a profitable and will help country to have stable, growing reserves of Bitcoin.
I'm surprised and shocked that a country that is under development will be the first to do this.. I was expecting the U.S.A, CANADA or other developed countries to start the trend.
The USA, Canada and most of other developed countries don't like Bitcoin and cryptocurrencies and it's a drop in the ocean for such a big countries to invest money in Bitcoin. It's also illogical to expect from them to start accepting Bitcoin payments and forcing their citizens to accept it. In this case, El Salvador might be a good test country to see how things go.
Well, since it appears that after 2.5 years investing into bitcoin, el Salvador has gotten to nearly 5% of its annual revenues in bitcoin, just consider how many bitcoin the USA, Canada or any other developed country would have to buy in order for bitcoin to constitute 5% of its annual revenues. Any country could try to buy BTC, but surely it would put way more price pressures on BTC if larger countries were engaging in BTC purchases, and in the whole scheme of things, El Salvador is pretty tiny - even though it could buy way more bitcoin without really affecting bitcoin's liquidity or to cause great slippage in the BTC price.
As I mentioned earlier, El Salvador could be justified to buy close to $1 million worth of bitcoin per day, and that would still ONLY be around 5% of its revenues, and maybe some other countries might feel that they need to catch up to El Salvador in terms of percentage of their revenues, which would be much more difficult for larger countries to do without really greatly affecting BTC's price, which largely should show how early we still are when it comes to bitcoin's adoption and how much liquidity that bitcoin truly could absorb if some additional countries start to buy bitcoin and/or try to catch up to El Salvador in terms of percentage of their annual revenues.
