Topic: El Salvador loses more than half the value of its reserves in bitcoins - page 3. (Read 626 times)
June 17, 2022, 11:11:07 PM
So you buy a house, the market crashes, do you go around saying that you lost half of your value? No. Why? Because you haven't sold your house yet to realize the loss. As long as you haven't sold anything, you don't lose anything. Your 1 BTC you are holding is still 1 BTC. You will only lose if you sell anything. So El Salvador hasn't lost anything since they didn't sell anything. The media is just trying to cause a stir and show that El Salvador made a very bad decision. After all, news/articles like those attracts the naysayers.
June 17, 2022, 09:55:02 PM
Bukele understands the economics of bitcoin and its nature of it. This is anticipated upon the purchase if a bear market comes and I think he's fully aware of it. He looked funny in the eyes of the others who regard him as doing the wrong thing but it's not just a president's decision to invest in bitcoin. But it probably has gone through a process and with the approval of the other officials before purchasing those bitcoins that they've got. I'm not knowledgeable how their local government goes but there's something like that before he steps on an action.
Bukele is a head of state who certainly has an important position, I'm true he will not make his own decisions. Buying bitcoin is the decision of several parties or their financial advisors. Bitcoin crashes like now of course they have funds to buy at lower prices again. Even though the current loss was more than half of what they had bought. But remember that as long as they don't sell El Salvador it's certainly not a loss. it's just a matter of time and when the bulls come I'm sure El Salvador led by Bukele will benefit.
June 17, 2022, 09:19:26 PM
Bukele understands the economics of bitcoin and its nature of it. This is anticipated upon the purchase if a bear market comes and I think he's fully aware of it. He looked funny in the eyes of the others who regard him as doing the wrong thing but it's not just a president's decision to invest in bitcoin. But it probably has gone through a process and with the approval of the other officials before purchasing those bitcoins that they've got. I'm not knowledgeable how their local government goes but there's something like that before he steps on an action.
June 17, 2022, 06:55:57 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.
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.
This bearish market can be seen as an opportunity rather as a bane to these investors.
While the prices of BTC dropped significantly over the past few months, this is a perfect time for long-term HODLers to acquire and purchase more during the process. Given the deflationary nature of BTC, its trend would is most likely upwards- meaning its price would increase definitely in the future, though no one knows when. But the fact that its price already reached $60,000 is an indication of its potential to increase again.
June 17, 2022, 06:42:48 PM
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El Salvador's Bitcoin reserve has lost half its value. Due to the price drop that the main cryptocurrency has had.
It might have a loss maybe millions of dollars supposedly but I think that didn't occur just because they still holding their Bitcoin and didn't yet sell to exchange. El Salvador has received a lot of criticism now but I think they have a wise decision of having a strong fate on Bitcoin, they never sell what they have bought last year, in the end when Bitcoin will bounce back, they will laugh at those who criticized.
Even though Dania Gonzalez, Deputy of the Republic of El Salvador reveal and said, "Now, it is time to buy more".
June 17, 2022, 06:09:38 PM
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El Salvador's Bitcoin reserve has lost half its value. Due to the price drop that the main cryptocurrency has had.
It might have a loss maybe millions of dollars supposedly but I think that didn't occur just because they still holding their Bitcoin and didn't yet sell to exchange. El Salvador has received a lot of criticism now but I think they have a wise decision of having a strong fate on Bitcoin, they never sell what they have bought last year, in the end when Bitcoin will bounce back, they will laugh at those who criticized.
Even though Dania Gonzalez, Deputy of the Republic of El Salvador reveal and said, "Now, it is time to buy more".
June 17, 2022, 06:06:02 PM
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.
In my personal opinion is because Mr.Bukele is aware that it is not the same to invest in Bitcoin as a company and as a country. El Salvador invested a modest quantity of money and yet they were target of a FUD campaign against Bitcoin adoption in the country, having organizations like the World Bank and the International Monetary Fund frowning upon such economical choice.
The adversaries of Bitcoin and decentralizaction are already quite annoyed by the fact Bitcoin evolved from a project for internet crypto-punks into an asset held and traded by companies, according to them that was never supposed to happen, Bitcoin was supposed to be a "scam" from the beginning in 2009. You could imagine how shaken they felt then El Salvador took the first step forward from asset to National currency.
It is not the same for the media artillery aiming to a company holding unrealized losses than a country being in the same position. Shareholders expose themselves to risky seeking profit, the people of El Salvador are not shareholders.
So I think it was just Bukele being cautious.
June 17, 2022, 05:28:44 PM
I don't think it's only Salvadorans who suffer losses if they buy bitcoins at a price of 50k$.
maybe the case of elsavador is different from that of ordinary holders, because btc is in elsavador for reserves if it is sold now it's normal because it's for the needs of their country, basic needs must be met if you don't have any more funds then the reserve funds must come out even if you lose once
maybe the case of elsavador is different from that of ordinary holders, because btc is in elsavador for reserves if it is sold now it's normal because it's for the needs of their country, basic needs must be met if you don't have any more funds then the reserve funds must come out even if you lose once
June 17, 2022, 05:11:26 PM
International Mafia Fund will try to make Bukele look bad, so they can kick him out and bring a puppet as president (somebody who eliminates Bitcoin, put the country under heavy USD debt, and give natural resources for free).
June 17, 2022, 05:01:45 PM
If El Salvador's reserves can absorb the Bitcoin dip comfortably, then it's not much of an issue.
Right. Although, if they don't hold through the dip, we might see Bitcoin go on sale even more. Since, its confirmation bias for a lot of people, that if it fails in El Salvador they'll see it as a risky investment, which will never be adoption by serious businesses or countries again. I'm definitely not saying they're right in thinking that, but they will absolutely think it. I don't mind the price dropping a little further, but I'd rather El Salvador cutting their loses not be the cause of it as it could significantly hurt adoption in the medium term, at least from a legal tender point of view.
June 17, 2022, 04:15:29 PM
IMF, another group of big boys who always want to control a country because of the little support they offer to their members, this is why I like countries who don't buy their idea to be among them.
El Salvador are so confident about their bitcoin, if their portfolio isn't upto 0.5% of their reserve, then I see no reason why IMF has been so adamant they should remove bitcoin as a legal tender, it could be a threat to their
researve due to it's volatility but where is the effect of 0.5% from 100% and moreover, the btc they underate today as 0.5% may 2x their reserve tomorrow, that's bitcoin for you.
El Salvador are so confident about their bitcoin, if their portfolio isn't upto 0.5% of their reserve, then I see no reason why IMF has been so adamant they should remove bitcoin as a legal tender, it could be a threat to their
researve due to it's volatility but where is the effect of 0.5% from 100% and moreover, the btc they underate today as 0.5% may 2x their reserve tomorrow, that's bitcoin for you.
June 17, 2022, 03:47:56 PM
I remeber this being a thing when the last drop happened (2017 or something like that), and a lost of investors that got late into that cycle lost on their investments, but those same investors would rank in profits when this last cycle hit an all time high this cycle.
there is a scientific diagram found in economics, which explains the science and the psychology of bitcoin economics from the perceptions of buyers vs critics
(^sarcasm/satire)
now seriously, what i mean to say is..
critics will be proved wrong over time.
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.
June 17, 2022, 03:19:28 PM
I remeber this being a thing when the last drop happened (2017 or something like that), and a lost of investors that got late into that cycle lost on their investments, but those same investors would rank in profits when this last cycle hit an all time high this cycle. So I could just say 'well they need to hodl and then they will be shooting lasers in a couple of years. But it's not that easy or clear cut and there are some undelying issues to all of this. The first one being that BTC and crypto will not and can not repair years and years of bad economic decisions by a government.
June 17, 2022, 03:02:54 PM
Yesterday I discussed this with friends on a local board about this. The current price of BTC will make some people in the El Salvador government say, this is the wrong financial plan. IMF might laugh for Bukele, since they are already warn him to not buy bitcoin. After all, bukele buy at the peak of the bitcoin price. If bitcoin pattern is the same, it may still take a few months to see bitcoin price going reversal. Bukele & el-Salvador must be consistent in storing their bitcoins, because if he sells, for example, at current prices, it means he has wasted money that should have been enough to build infrastructure in his country.
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..
if you have no intention to sell today. ignore the offers being made today.. they are meaningless to you
you only lose if you sell at a loss.
if there are other people willing to sell their property/asset at a half price discount. its better to buy their property/asset. and then when the offers change in your favour of better sell prices.. then you can get even more profit
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..
if you have no intention to sell today. ignore the offers being made today.. they are meaningless to you
you only lose if you sell at a loss.
if there are other people willing to sell their property/asset at a half price discount. its better to buy their property/asset. and then when the offers change in your favour of better sell prices.. then you can get even more profit
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.
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.
June 17, 2022, 01:57:40 PM
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El Salvador's Bitcoin reserve has lost half its value. Due to the price drop that the main cryptocurrency has had.
According to data published on his Twitter account by the President of the Republic, Nayib Bukele, 2,301 BTC have been purchased, in which a sum of $103 million would have been spent, at the current exchange rate.
Twitter: https://twitter.com/nayibbukele/status/1536800544894902274?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1536800544894902274%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcriptotendencia.com%2F2022%2F06%2F17%2Fla-reserva-de-el-salvador-de-bitcoin-pierde-mitad-de-su-valor%2F
However, the best-known cryptocurrency in the market experienced a sharp drop since last Saturday with a loss of 17.14% yesterday compared to the previous day, reaching its lowest level since December 2020.
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IMF insists that El Salvador must eliminate the BTC law
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.Source: https://latin-american.news/el-salvador-loses-more-than-half-the-value-of-its-reserves-in-bitcoins/
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