It's undeniable El Salvador increases its debt regards the investment made in bitcoins when compared to the price it was bought if the cryptocurrency's price keeps falling. Although it's not a problem for now, as the investment was made aiming long term returns for the country's treasury. Only in some years or in a decade we will be able to conclude if that was a good step or not for El Salvador to have invested in bitcoin.
The point is that El Salvador faces a difficult economical situation for a long time already, currently with 84% of its GDP compromised with debt and I don't think bitcoin is going to be a magical tool which will solve all their financial problems suddenly. The government actually needs to attract foreigner investors and foreigner funds to their country in order to increase the GDP and decrease debt. It's not an easy task though. Tourism could be a decent source of income for the country, but the pandemic difficults it from happening. Moreover, there are so many countries and islands around which directly compete for the same kind of public in tourism sector.
Topic: Is El Salvador in debt because of the bitcoin price drop? - page 2. (Read 676 times)
El Salvador's debt has been steadily going up for a number of years. This is the issue with the crypto bubble, a bunch of people thinks that BTC (or crypto in general) is the only factor in saving or killing an economy, and that's just not how the economy works. It's never a single thing, and things such as BTC accumulation will not affect the overall debt projected in the oncoming years. And when BTC goes back up, you will see that El Salvador's debt will not change that much either. SO the short answer is NO, it's in debt because it has had economic turmoil for a number of years prior.
Nayib Bukele has a strategy on how he can take advantage of this crashing market situation by buying more bitcoins to add Bitcoin assets at the lowest price. Of course when the price starts to rise he will get some profit. This el salvador president will probably continue to buy bitcoin when the price drops and in time he will sell it at a higher price or a new ATH price above $100k. Of course that is the goal and a long-term investment.
Nayib Bukele is indeed an extraordinary president, I am quite amazed by all the policies he has taken, especially by legalizing Bitcoin as a legal
tender is the boldest step taken by Bukele. If we look at the beginning of Nayib Bukele's life, he has started running the company since he was
18 years old. I can assure you that Nayib Bukele's decision was not careless. Because from a young age, Nayib Bukele is used to making
important decisions, and solving problems well. Likewise, when the price of Bitcoin falls, it will not leave El Salvador in debt, because Nayib Bukele
must have previously studied Bitcoin. When the Bitcoin price drops he already knows what steps to take, El Salvador will not sell Bitcoin when
the price is low, and indeed from the very beginning El Salvador invested in Bitcoin for the long term. So instead of selling Bitcoin, El Salvador
prefers to buy more Bitcoin. So when the Bitcoin price recovers and the Bitcoin price reaches new ATH, El Salvador can generate huge profits
and help boost the economy in El Salvador. If El Salvador finally experiences an economic boom from investing in Bitcoin, other countries will
surely follow suit to legalize Bitcoin and invest in Bitcoin too.
Before Bukele started this investments about bitcoin, he must be knowledgeable enough that the crypto market evolves in two different cycles, bullish and bearish season. So meaning, El Salvador has prepared this battle already and losing this time will only be visible if they happen to sell their coins when the market value has started to decreased.
You are right, bro. Nayib Bukele isn't a stupid person who wants to invest in Bitcoin without proper knowledge. He is a president and put money in Bitcoin for his country purpose. He must prepare everything including may hire some people who are experienced in crypto investment to help him. So, it is very strange to doubt the capacity of president Nayib Bukele. Sure, they must know the cycle of bearish and bullish, that's why they still hold their Bitcoin and continue to buy more once the Bitcoin price was below $35k. In my understanding, they are quite confident that in the future Bitcoin price to soar more than the current ATH.Bukele is a very intelligent president, he knew very well what he was getting himself into, and he was clearly aware that if BTC went down he would have considerable losses, however he is a president who runs other types of businesses and has other money coming in with him. that the country can produce, before BTC they lived on remittances, so the number of BTC you have should not matter if you leave it in Hodl mode, in the same way when you bought it you made a profit and those profits allowed you to do many things favorable, so waiting a little longer having BTC is not something that hurts, on the contrary, he knows that he is amassing a great millionaire fortune for his nation.
That's what I admire him because he really know what he is doing since for thinking about buying when the price dip is actually a work by experience guy so even if they are at downside right now for sure all laughs will be at them once bitcoin price recovers on this bear market condition. We know bitcoin is in bad shape right now and this is accumulation phase for other and good to hear that their president accumulate some on last few days since this could help them in future.
Nayib Bukele has a strategy on how he can take advantage of this crashing market situation by buying more bitcoins to add Bitcoin assets at the lowest price. Of course when the price starts to rise he will get some profit. This el salvador president will probably continue to buy bitcoin when the price drops and in time he will sell it at a higher price or a new ATH price above $100k. Of course that is the goal and a long-term investment.
The public would able to know if he had bought another coins in the market yet the address been used could be publicly seen.https://economictimes.indiatimes.com/tech/tech-bytes/el-salvador-adds-nearly-25-million-in-bitcoin-to-state-coffers-says-president/articleshow/87326906.cms?from=mdr
Instead of panic, he had bought more.?
https://www.forbes.com/sites/zacharysmith/2022/01/21/el-salvador-buys-15-million-worth-of-bitcoin-really-cheap-president-crows-as-selloff-continues/?sh=1fbcb63960ed
Nayib Bukele has a strategy on how he can take advantage of this crashing market situation by buying more bitcoins to add Bitcoin assets at the lowest price. Of course when the price starts to rise he will get some profit. This el salvador president will probably continue to buy bitcoin when the price drops and in time he will sell it at a higher price or a new ATH price above $100k. Of course that is the goal and a long-term investment.
Before Bukele started this investments about bitcoin, he must be knowledgeable enough that the crypto market evolves in two different cycles, bullish and bearish season. So meaning, El Salvador has prepared this battle already and losing this time will only be visible if they happen to sell their coins when the market value has started to decreased.
You are right, bro. Nayib Bukele isn't a stupid person who wants to invest in Bitcoin without proper knowledge. He is a president and put money in Bitcoin for his country purpose. He must prepare everything including may hire some people who are experienced in crypto investment to help him. So, it is very strange to doubt the capacity of president Nayib Bukele. Sure, they must know the cycle of bearish and bullish, that's why they still hold their Bitcoin and continue to buy more once the Bitcoin price was below $35k. In my understanding, they are quite confident that in the future Bitcoin price to soar more than the current ATH.Bukele is a very intelligent president, he knew very well what he was getting himself into, and he was clearly aware that if BTC went down he would have considerable losses, however he is a president who runs other types of businesses and has other money coming in with him. that the country can produce, before BTC they lived on remittances, so the number of BTC you have should not matter if you leave it in Hodl mode, in the same way when you bought it you made a profit and those profits allowed you to do many things favorable, so waiting a little longer having BTC is not something that hurts, on the contrary, he knows that he is amassing a great millionaire fortune for his nation.
That's what I admire him because he really know what he is doing since for thinking about buying when the price dip is actually a work by experience guy so even if they are at downside right now for sure all laughs will be at them once bitcoin price recovers on this bear market condition. We know bitcoin is in bad shape right now and this is accumulation phase for other and good to hear that their president accumulate some on last few days since this could help them in future.
Before Bukele started this investments about bitcoin, he must be knowledgeable enough that the crypto market evolves in two different cycles, bullish and bearish season. So meaning, El Salvador has prepared this battle already and losing this time will only be visible if they happen to sell their coins when the market value has started to decreased.
You are right, bro. Nayib Bukele isn't a stupid person who wants to invest in Bitcoin without proper knowledge. He is a president and put money in Bitcoin for his country purpose. He must prepare everything including may hire some people who are experienced in crypto investment to help him. So, it is very strange to doubt the capacity of president Nayib Bukele. Sure, they must know the cycle of bearish and bullish, that's why they still hold their Bitcoin and continue to buy more once the Bitcoin price was below $35k. In my understanding, they are quite confident that in the future Bitcoin price to soar more than the current ATH.Bukele is a very intelligent president, he knew very well what he was getting himself into, and he was clearly aware that if BTC went down he would have considerable losses, however he is a president who runs other types of businesses and has other money coming in with him. that the country can produce, before BTC they lived on remittances, so the number of BTC you have should not matter if you leave it in Hodl mode, in the same way when you bought it you made a profit and those profits allowed you to do many things favorable, so waiting a little longer having BTC is not something that hurts, on the contrary, he knows that he is amassing a great millionaire fortune for his nation.
I am also curious if those posts of their President are Bitcoin bought using funds of El Salvador because maybe it comes from the money of their President itself.
And even if those are coming from the pocket of El Salvador, I believe those amounts are just a very very small amount of money I believe it will not affect the country's fund at all. Their Bitcoin portfolio is already underwater, lol.
For sure it would be on peoples money or simply belong to the state and wont really be coming from his own pocket and its true that their portfolio is on floatingAnd even if those are coming from the pocket of El Salvador, I believe those amounts are just a very very small amount of money I believe it will not affect the country's fund at all. Their Bitcoin portfolio is already underwater, lol.
negative as of this moment but doesnt mean that they would really be selling off due to panic and pretty much sure that they are fully aware on what would gonna
happen since this market is volatile since in the first place on which they are for sure prepare for this time to come and now the questions is, whether they
do buy on the dip or would cut loss?
I am also curious if those posts of their President are Bitcoin bought using funds of El Salvador because maybe it comes from the money of their President itself.
And even if those are coming from the pocket of El Salvador, I believe those amounts are just a very very small amount of money I believe it will not affect the country's fund at all. Their Bitcoin portfolio is already underwater, lol.
For sure it would be on peoples money or simply belong to the state and wont really be coming from his own pocket and its true that their portfolio is on floatingAnd even if those are coming from the pocket of El Salvador, I believe those amounts are just a very very small amount of money I believe it will not affect the country's fund at all. Their Bitcoin portfolio is already underwater, lol.
negative as of this moment but doesnt mean that they would really be selling off due to panic and pretty much sure that they are fully aware on what would gonna
happen since this market is volatile since in the first place on which they are for sure prepare for this time to come and now the questions is, whether they
do buy on the dip or would cut loss?
is el salvador in debt because of bitcoin's decline,?? According to the media that I'm reading now, El Salvador's debt is increasing due to the influence of the decline in bitcoin, but there are also media that say that bukele actually buys up bitcoin when the price is falling, maybe your question should just ask bukele directly, because only bukele knows more about the country's finances, because if we read articles about el salvador there is no certainty..
Not all that we read online are true but they can put up a headline like this just to gain attention without really knowing the real situation. No president will do crazy things and make his country in danger because that will tarnish his reputation. I think the second article that you read where bukele buys more bitcoin is true because he is a real bitcoin enthusiast. The actions he made on the past proves it.I am also curious if those posts of their President are Bitcoin bought using funds of El Salvador because maybe it comes from the money of their President itself.
And even if those are coming from the pocket of El Salvador, I believe those amounts are just a very very small amount of money I believe it will not affect the country's fund at all. Their Bitcoin portfolio is already underwater, lol.
I guess it only comes from the pocket of bukele. A president salary is huge and he can use that to buy lots of bitcoins. Countries funds should be handled safely and stably, away from fluctuations because will only be used to improve the country itself, not on the things that can cause more harm in the future. And even if those are coming from the pocket of El Salvador, I believe those amounts are just a very very small amount of money I believe it will not affect the country's fund at all. Their Bitcoin portfolio is already underwater, lol.
El Salvador sure is a really small and not-so-rich country, but do you really think they'd put that much funds into something that could drop and put them into debt? I'm pretty sure Bukele and his finance people aren't THAT incompetent. If they were really bullish on bitcoin but at the same time can think realistically, I'm pretty sure they'll have money for dips and crashes.
He has a nice sense of humour too!
https://twitter.com/nayibbukele/status/1485031106982428677
He is more pro active on these social media accounts and post such bitcoin favouring tweets and more importantly he invest at most of the dips which is why El Salvador holds around 1120 bitcoins and probably more and they might get into more profits in the long run when price starts to pump.He has a nice sense of humour too!
https://twitter.com/nayibbukele/status/1485031106982428677
There was one such tweet few time back when the prices were high and El Salvador was gaining profits out of it then he was burning out some other btc haters with his statements :
They were in debt from long and it's not that btc have degraded their position but in actual they have invested quite a big amount in bitcoin and being third world country they rely much on their reserves for growth purpose but you see as IMF have urged them to drop the legal status of bitcoin they will potray as conditions have worsen for them after they have adopted it as legal tender.
The US dollar domination has curbed their economy for years and being one of the young president he is taking up some smart move on accepting btc and boost the economy.The prices are down at this time but they will not stay there forever and will eventually rise so is their profits along with it.So nothing to worry about it and soon they will get profits.
I am also curious if those posts of their President are Bitcoin bought using funds of El Salvador because maybe it comes from the money of their President itself.
And even if those are coming from the pocket of El Salvador, I believe those amounts are just a very very small amount of money I believe it will not affect the country's fund at all. Their Bitcoin portfolio is already underwater, lol.
And even if those are coming from the pocket of El Salvador, I believe those amounts are just a very very small amount of money I believe it will not affect the country's fund at all. Their Bitcoin portfolio is already underwater, lol.
If this dump continues for some more weeks, then it might be problematic for the El Salvador government. Because the opposition party has something to blame them for any kind of debt. And because of the economy, stocks and fiat investors also have something to say against Bitocin.
Personally I would say that them investing at that time they did was quite a bad idea, because the market was at what seems to be its peak, so it would have been best that they did it earlier before the bull run or waited out the last bull run till now that the market is bearish before they would start investing.Because like you have said, the opposition party would hold this as a point against the current government in the country, and they would say that the current government of El Salvador spent the country’s money in buying Bitcoin and leading the country into more loss and debt. But I believe in the next four years they would recover.
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I hate to say it but more and more we're going to see a lot of banking people who can't wait to use El Salvador as teachable moment fodder. Wonder if Bukele will soon be on the phone calling up them Miami conference friends and getting their voicemail. I suppose they could always NFT their Twitter profiles.I always thought that one of the main advantages of BTC or other shitcoins is the lack of active leadership, Satoshi is gone, there is nothing coming from him, he can't do blunders in the press, he can't take any wrong decisions he can't be proven wrong in what he says.
Now everything is reversed by poeple actually trying to portray these guys as somewhat of leaders or influencers that can actually dictate how things are going, a user here even called him an angel, just lol. The moment these guys fall they will be, as you said it, the prime ingredient for the media to attack bitcoin. Just think how they will exploit this, bitcoin country is near bankruptcy, it doesn't even matter that BTC is just 0.01% of the economy, it doesn't matter that other countries are in some situation without BTC, those clickbait articles manufacturers are going to have a party.
Ironically, although I don't think Bukele is nowhere near the good guy he poses to be and he is just another manipulator right now I'm forced to actually hope he will not get into trouble with all his lies because of the consequences.
Before Bukele started this investments about bitcoin, he must be knowledgeable enough that the crypto market evolves in two different cycles, bullish and bearish season. So meaning, El Salvador has prepared this battle already and losing this time will only be visible if they happen to sell their coins when the market value has started to decreased.
You are right, bro. Nayib Bukele isn't a stupid person who wants to invest in Bitcoin without proper knowledge. He is a president and put money in Bitcoin for his country purpose. He must prepare everything including may hire some people who are experienced in crypto investment to help him. So, it is very strange to doubt the capacity of president Nayib Bukele. Sure, they must know the cycle of bearish and bullish, that's why they still hold their Bitcoin and continue to buy more once the Bitcoin price was below $35k. In my understanding, they are quite confident that in the future Bitcoin price to soar more than the current ATH.
Wont be considered as total loss if they havent sold anything when the price had dumped.Of course these are one of the risks that you would really be dealing with Bitcoin on which its price is volatile as hell.You wouldnt comes next but what do assures you is that you would really have some sort of assurance that youve been dealing with the right thing.
I do also believe that they do have debts before they had made Bitcoin as a legal tender thats why it isnt really that much right that Btc would took all the blame.It isnt really that justifiable if you do ask me and also the community isnt blind for that fact.
I do also believe that they do have debts before they had made Bitcoin as a legal tender thats why it isnt really that much right that Btc would took all the blame.It isnt really that justifiable if you do ask me and also the community isnt blind for that fact.
There was most likely some debt before they even purchased Bitcoin so it's not because of Bitcoin. The way I see it, El Salvador isn't that worried about their Bitcoin investment and endeavor and they might actually be investing for the long term and would continue buying more btitcoin as it falls even cheaper towards the supply zone.
El Salvador can take solace in the fact that Michael Saylor and Microstrategy are aboard this ship.
Here they write that El Salvador has a debt to the IMF in the amount of 287 million dollars. I am sure that this is an old debt and it arose or increased even before the adoption of bitcoin as a national payment currency. Now, if the government of El Salvador does not sell his bitcoins at the current low price, then he will not have financial problems. Of course, the world has not yet known such an experience, and the whole world is watching how the economy of El Salvador will behave in the face of falling Bitcoin prices.
This time may be a great challenge for El Salvador as its their first time to witness bitcoin falling its value. But not on the part of Bukele as he was used to crypto market even before El Salvador has not adopted bitcoin. But if they are just hodling their coins with this current dump, then i don't think they will lose and maybe put in big debt. I believe the said debt was already here before they adopt bitcoin.I do also believe that they do have debts before they had made Bitcoin as a legal tender thats why it isnt really that much right that Btc would took all the blame.It isnt really that justifiable if you do ask me and also the community isnt blind for that fact.
Here they write that El Salvador has a debt to the IMF in the amount of 287 million dollars. I am sure that this is an old debt and it arose or increased even before the adoption of bitcoin as a national payment currency. Now, if the government of El Salvador does not sell his bitcoins at the current low price, then he will not have financial problems. Of course, the world has not yet known such an experience, and the whole world is watching how the economy of El Salvador will behave in the face of falling Bitcoin prices.
This time may be a great challenge for El Salvador as its their first time to witness bitcoin falling its value. But not on the part of Bukele as he was used to crypto market even before El Salvador has not adopted bitcoin. But if they are just hodling their coins with this current dump, then i don't think they will lose and maybe put in big debt. I believe the said debt was already here before they adopt bitcoin. When I hear people yelling about debts and loses when coins dump or during the bear market, I ask myself one question.
Have they sold all them bitcoin or altcoins?
Because, that's practically the only time uou get to really loose. You lose nothing whoe holding on to your precious coin. Yeah, it must have devalued but the quantity stays constant while waiting on a rise. Should you be able to hodl until it pumps or a bullrun eventually comes up, you get them value back on track.
So, while counting loses for El-Salvador bitcoin investment, let's first of all understand if they were being sold or put to use in some way. If that isn't being done, then they just might be as stable as before during the bull Market. Let the politicians play there games but, that's simply the truth. Those I would feel for is, the merchants who rely on there bitcoin purchases to refill there stocks. Those horling are ruled out on this. Infact, its time to buy some more.
Before Bukele started this investments about bitcoin, he must be knowledgeable enough that the crypto market evolves in two different cycles, bullish and bearish season. So meaning, El Salvador has prepared this battle already and losing this time will only be visible if they happen to sell their coins when the market value has started to decreased. But i guess they're not. Of course, they might have develop fears seeing the price of bitcoin started to decline, but i know they can manage it and chose to hold their bitcoins because its always expected that bitcoin will always recover again. Have they sold all them bitcoin or altcoins?
Because, that's practically the only time uou get to really loose. You lose nothing whoe holding on to your precious coin. Yeah, it must have devalued but the quantity stays constant while waiting on a rise. Should you be able to hodl until it pumps or a bullrun eventually comes up, you get them value back on track.
So, while counting loses for El-Salvador bitcoin investment, let's first of all understand if they were being sold or put to use in some way. If that isn't being done, then they just might be as stable as before during the bull Market. Let the politicians play there games but, that's simply the truth. Those I would feel for is, the merchants who rely on there bitcoin purchases to refill there stocks. Those horling are ruled out on this. Infact, its time to buy some more.
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