El Salvador loses more than half the value of its reserves in bitcoins

Mpamaegbu

legendary

Activity: 2716

Merit: 1225

Once a man, twice a child!

Quote from: franky1 on June 17, 2022, 02:47:49 PM

if you have a car.. and.. you are not going to sell it this year..
yet if someone tells you that will only buy it off of you at half price...

have you actually lost your car.. no
have you actually had the car cut in half where it now only has 2 wheels.. no

because.. you are not going to sell it this year..

I like your analogy. That's true. It's the same way when price bulls and the hodler isn't selling off. In cryptos, no one loses or makes profit until they've sold off.

I don't even think we should cry more than the bereaved. Until El Salvadorians start complaining of their loss in Bitcoin investment, I think the rest of the world should be mute on that. From what I read, the depreciation (not even loss) is infinitesimal and El Salvador isn't perturbed by it at all yet.

RealMalatesta

legendary

Activity: 2338

Merit: 1124

Quote from: bussybuddy on June 26, 2022, 04:15:46 AM

I also see the activities of the president of El Salvador in favor of BTC. Since this market has received more interest, many people have invested many assets in it. Basically, from 2022 to the present, we see its decline and the losers who have invested in this phase may be going through the loss phase, but we are just looking at them from the perspective of others. In a time period that we limit, is it convincing as to whether they have failed or not? Who knows when they will sell them? Perhaps I think a long-term investment is here when they see opportunity and potential for future price increases rather than a short-term cycle term. Whether in 10 years' time we repeat this issue, 10 years ago someone bought BTC with pizza or forgot it and looked at the current value.

I agree that maybe it hasn't been paying off really well for the time being and that could cause him some votes there is no denying that, maybe he will lose next elections if things go like this and maybe if he loses and someone else comes, they will sell off with a loss and get out, I do not know. But I am 100% certain that there is a good amount of people who loved this news because we have seen a president of a nation got into crypto with the money he made from the taxes that citizens paid. This is why I believe that this is such a great situation to be in.

I believe that the best thing we could do right now would be supporting them, and helping people understand that the drop is a short term one and president still did something good for the future of his nation, not gonna work today, but will be beneficial for all El Salvador in the future.

sklopan

jr. member

Activity: 98

Merit: 2

Quote from: bussybuddy on June 26, 2022, 04:15:46 AM

I also see the activities of the president of El Salvador in favor of BTC. Since this market has received more interest, many people have invested many assets in it. Basically, from 2022 to the present, we see its decline and the losers who have invested in this phase may be going through the loss phase, but we are just looking at them from the perspective of others. In a time period that we limit, is it convincing as to whether they have failed or not? Who knows when they will sell them? Perhaps I think a long-term investment is here when they see opportunity and potential for future price increases rather than a short-term cycle term. Whether in 10 years' time we repeat this issue, 10 years ago someone bought BTC with pizza or forgot it and looked at the current value.

Yes, talking 10 years ahead about such a currency simply does not make sense. Moreover, even for several weeks it is difficult to make any forecast more accurate.

bussybuddy

full member

Activity: 1190

Merit: 105

PredX - AI-Powered Prediction Market

I also see the activities of the president of El Salvador in favor of BTC. Since this market has received more interest, many people have invested many assets in it. Basically, from 2022 to the present, we see its decline and the losers who have invested in this phase may be going through the loss phase, but we are just looking at them from the perspective of others. In a time period that we limit, is it convincing as to whether they have failed or not? Who knows when they will sell them? Perhaps I think a long-term investment is here when they see opportunity and potential for future price increases rather than a short-term cycle term. Whether in 10 years' time we repeat this issue, 10 years ago someone bought BTC with pizza or forgot it and looked at the current value.

DapanasFruit

member

Activity: 1218

Merit: 49

Binance #Smart World Global Token

Personally, I would like to see Bitcoin on the level of the real gold which is actually one of the most important reserve asset one country can hold especially in the face of the changing global economy we have right now which in the next few months can be exposing weakly managed economies as we are seeing it unfold in Sri Lanka. But reality bites. As for Bitcoin, I think that we can now rule away any chance for any other central bank to be taking in Bitcoin as a global reserve. Such a risk due to extreme volatility is not something a country can easily handle. Countries are always looking for stability...which Bitcoin could never offer as of the moment. Now, some may disagree with me on this point but I think what we are seeing right now is the best example why no central bank will soon be picking up Bitcoin...many would rather prefer the real gold.

worldtraveller321

member

Activity: 512

Merit: 33

The Quest of the Best Information to the Solution

I think this country is still in positive with holding the BTC. Since when should one expect instant success. Holding BTC is a long term solution with the benefits in the coming years.

IF they sold out now, they would lose for sure.

AakZaki

legendary

Activity: 2338

Merit: 1084

zknodes.org

Quote from: PrivacyG on June 25, 2022, 07:42:08 AM

So far so good. It is currently a paper loss for them and I am sure they invested this much knowing already that it may drop at some point.

If someone invests a hundred million without knowing how volatile the market can be during uncertain times, they are dumb no offense. You can not put that much money into an asset without studying it in advance. Big stocks have been dumped before and recovered. Historically speaking, Bitcoin's recovery is always more than impressive. So long as this has been a responsible investment, who cares about a for-now paper loss?

-
Regards,
PrivacyG

Actually there is no loss when el salvador still keeps its bitcoins. The value of bitcoin only decreases and the amount remains the same.
The investment carried out by el salvador is certainly full of responsibility and not just the president's decision. This is a long term investment, of course el salvador will increase the number of bitcoins it has.

Oneandpure

sr. member

Activity: 2100

Merit: 309

I don't know specific details about how much bitcoin have and purchase by El Savador president, they have been legal bitcoin and invested trough bitcoin on the top price, does selling bitcoin when reach higher price? If yes El Savador president have get much profit, but do not know if try keep hold bitcoin amd right now almoat drop 50% actually they have much money from bitcoin investment. Bad thing if hold bitcoin made by El Savador president and give bad impact or reputation from their people after seeing bitcoin price drop drastically righ now.

amishmanish

legendary

Activity: 1904

Merit: 1159

I dont know why I smell something fishy behind all this. Since bitcoin seems to be a top contender to conventional fiat backed economic system. Many countries have banned crypto, However such countries are introducing their own alternatives to bitcoin like stable coin. Is this a well thought out plan by big billionaires and big governments, where they will be ultimately the winners. Hopefully the techies will soon find a way to keep our economy decentralized.

Sterbens

sr. member

Activity: 1848

Merit: 341

Duelbits.com

El Salvador is not a country without knowledge of the Bitcoin market situation and the risks of volatility. Of course El Salvador has prepared other finances that can be anticipated during a bear market. After all El Salvador financial income is not 100% of Bitcoin. They have other sources of income, one of which is the largest income from the textile industry.

SpenserReed

jr. member

Activity: 63

Merit: 1

Quote from: MARK21 on June 17, 2022, 01:57:40 PM

According to what I just investigated, the International Monetary Fund (IMF), the entity with which the Bukele government was negotiating an agreement for up to $1,400 million, urged the country to "limit the scope of the Bitcoin Law. Eliminating its status as currency of legal tender" and also expressed "concern" about the issuance of cryptocurrency-backed bonds.

So, as we can see, the U.S. doesn't want bitcoin, and other countries won't allow it either...

BitcoinGirl.Club

legendary

Activity: 2800

Merit: 2736

Farewell LEO: o_e_l_e_o

Quote from: hatshepsut93 on June 17, 2022, 03:45:52 PM

$50 million is really a small sum for any country, even as small as El Salvador. If they had 10% or higher of their foreign currency in Bitcoin, this would be a problem. I'm actually surprised that despite all the Bitcoin maximalism rhetoric, El Salvador didn't go as much all in on Bitcoin as Microstrategy did.

The government of El Salvador should be in buying mood now. This could be an opposite news if bitcoin value against dollar was $100k. There are no time for bitcoin network to care for a value against a fiat. It's always 1BTC = 1BTC. Whatever reserve El Salvador has it's still the same if they have not spent it.

PrivacyG

hero member

Activity: 882

Merit: 1873

Crypto Swap Exchange

So far so good. It is currently a paper loss for them and I am sure they invested this much knowing already that it may drop at some point.

If someone invests a hundred million without knowing how volatile the market can be during uncertain times, they are dumb no offense. You can not put that much money into an asset without studying it in advance. Big stocks have been dumped before and recovered. Historically speaking, Bitcoin's recovery is always more than impressive. So long as this has been a responsible investment, who cares about a for-now paper loss?

-
Regards,
PrivacyG

LogitechMouse

legendary

Activity: 2576

Merit: 1043

Need A Campaign Manager? | Contact Little_Mouse

Ok so El Salvador loses half of the value of their Bitcoin reserves. So what now?
Even me also lose a huge percentage of my Bitcoin holdings. Obviously, those who bought Bitcoin before the crash are having a paper loss as of this moment.

There is nothing wrong with having a paper loss, especially when we are talking about Bitcoin here. What's wrong is that, you bought before the crash, and you sold your holdings at the bottom or at least near to it. President Bukele will hold to their Bitcoins for sure. He isn't a dumb investor who will just sell their holdings just because of seeing it dumping. I hope that newbie investors follow what he is doing. Just holding when the market is down and not panicking.

buwaytress

legendary

Activity: 2968

Merit: 3684

Join the world-leading crypto sportsbook NOW!

Not the biggest fan of Bukele but he's right. Price is temporary, value is permanent. 1 BTC = 1 BTC and all that, markets spend most of its time under/overestimating the value in terms of USD.

Note also he says it in a way that he doesn't believe the bear market is anywhere near being over. And he's got to be a maximalist, no? Am actually seeing a bit more analyses pieces now that suggest we're close to or at the bottom already, but they all appear to be ignoring the wider economic turmoil we're about to witness globally.

DerekFlips

newbie

Activity: 15

Merit: 0

Quote from: Upgrade00 on June 17, 2022, 02:11:00 PM

Basically all Bitcoin holders who bought within the past 7 months have lost a huge portion on their investments.
Having an investment register red candles is not bad on its own, it only is, if you cannot hold through that period and would need to panic sell as you invested more than you can afford to lose.

If El Salvador's reserves can absorb the Bitcoin dip comfortably, then it's not much of an issue.

Well said bro. Its not lost unless you emotion sell it. Do not get triggered, it is a phase and it will get better fo sure

KingsDen

legendary

Activity: 1288

Merit: 1081

Goodnight, o_e_l_e_o 🌹

Quote from: Pesona1 on June 25, 2022, 03:47:43 AM

This statement of Bukele is a resounding hope to the people of El Salvador and bitcoin lovers world wide. I said this because I understand the kind of panic that will be going on in El Salvador by now. This is an online community and yet we are feeling the impact here, how about a country that made bitcoin her legal tender.
There will be massive pressure from the citizens, critics and especially IMF who have already misjudged their decision.

Then if El Salvador will not sell, there is pending joy in few years time. But if El Salvador eventually sell at this very crucial point, the panic will send bitcoin more to $5,000. It is surely be safe that they keep holding.

Pesona1

sr. member

Activity: 812

Merit: 254

Leading Crypto Sports Betting & Casino Platform

Quote from: GreatArkansas on June 24, 2022, 09:14:52 PM

For me, their losses are just a cent for sure, very little amount only for them.
For sure they are very careful since they bought Bitcoin, they are aware of it, and they are aware of possibility that they could lose their investment.
I am waiting for them to buy more.

Indeed El Salvador has lost about 50% of its asset value right now, but are they panicking?
I think not at all and even they are calm because bitcoin strong fundamentals will certainly allow bitcoin prices to rise later, even recently President Nayib emphasized that they consider the current decline to be normal and not have too much impact on the country finances, he even appealed to all bitcoin holders not to panic over the current situation and said that patience is the key to everything.

GreatArkansas

legendary

Activity: 2506

Merit: 1394

For me, their losses are just a cent for sure, very little amount only for them.
For sure they are very careful since they bought Bitcoin, they are aware of it, and they are aware of possibility that they could lose their investment.
I am waiting for them to buy more.

n0ne

hero member

Activity: 2618

Merit: 548

DGbet.fun - Crypto Sportsbook

Quote from: Ale88 on June 24, 2022, 06:38:44 PM

Quote from: hatshepsut93 on June 17, 2022, 03:45:52 PM

$50 million is really a small sum for any country, even as small as El Salvador. If they had 10% or higher of their foreign currency in Bitcoin, this would be a problem. I'm actually surprised that despite all the Bitcoin maximalism rhetoric, El Salvador didn't go as much all in on Bitcoin as Microstrategy did.

I think it's actually closer to $100 mln instead of $50 mln but yeah, it doesn't change your point and I agree with that: for a country that's a very small amount of money, even for a very small one like El Salvador.

El Salvador made the strong decision of making bitcoin legal tender, but in terms of holding El Salvador didn't go much on bitcoin. It slowly started to acquire more and more during the drops, and if El Salvador have adopted bitcoin earlier now the holdings could've been big. As said, for a country the decline of $50m is not a big think. On the other side it has got pressure from World Bank on interest to be paid this July.

Topic: El Salvador loses more than half the value of its reserves in bitcoins (Read 616 times)