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.
Topic: Is El Salvador in debt because of the bitcoin price drop? - page 3. (Read 747 times)
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.
Afaik salvador already profited and used profits from their first buy, and probably the rest counting how markets been going.
How sure are you about that, do you have any proof that shows that they sold part of their investment at first to make profit from the market? The post by the OP shows that they only bought more coins during the deep and added to the ones that they have bought first at high price, making their total holdings of bitcoin asset up to 500 BTC.There was never a post I saw that shows that they sold any coins. Anyways an investment in bitcoin is never a loss, because they are still going to recover back everything that they have lost now in the future when the market starts to increase in value again. It’s not like this is the first time that the market has dropped this low.
There are people of them that are against to the continuous buying of their president. But they're like Microstrategy that does it whenever the market is plunging and they think that it's the right time to buy. They won't just buy bitcoin within a short term plan that they have.
he did for a reason but somehow, some of their citizens don't understand it and make negative talks about it. But for me, he did it right, and no way for him to regret it but rather to keep buying.Quote
It's the same for these retail companies that they know what they're up to and that's not just for the short term. I'm not sure about the debt but if the price of bitcoin gets lower and they've bought it at a higher price, that's not debt, that's paper loss.
I become uncertain when talking about debts as the result of investing in Bitcoin. Perhaps, many people have already suffered losses during this dump but this never causes debts. They are not selling yet and their investment is still intact which means that they are not losing yet. 
All eyes are on them, especially those countries that are planning to do what they have done regarding bitcoins. In my opinion, they are doing exactly right buying in the dip and continue holding it until the price will recover again. since their debt has increased this year compared to last, I'm sure they considering other opportunities and ways to counter that problem and bitcoins will become one of their main solutions.
El Salvador will be the real test of effectiveness of bitcoin adoption and that's why no doubt that all eyes are on them. Not just that, it is also because El Salvador is the first country that made a solid decision of adopting bitcoin however I may not doubt also that it could be in fall of debt today because of the dumped price of bitcoin. But it's just because the cryptocurrency is something like this, volatile and unpredictable. I am very optimistic that it will going to bounce back and hopefully El Salvador could recover too.
I don't think El Salvador is likely to fall after the market crashed yesterday, because El Salvador in making a decision before legalizing bitcoin as a legal medium of exchange, of course, has created a special team in dealing with negative issues regarding the decline in the price of bitcoin in the future and when bitcoin should be sold and when. bitcoins have to be bought and of course they have a plan B in case the market goes bad in the future.
All eyes are on them, especially those countries that are planning to do what they have done regarding bitcoins. In my opinion, they are doing exactly right buying in the dip and continue holding it until the price will recover again. since their debt has increased this year compared to last, I'm sure they considering other opportunities and ways to counter that problem and bitcoins will become one of their main solutions.
El Salvador will be the real test of effectiveness of bitcoin adoption and that's why no doubt that all eyes are on them. Not just that, it is also because El Salvador is the first country that made a solid decision of adopting bitcoin however I may not doubt also that it could be in fall of debt today because of the dumped price of bitcoin. But it's just because the cryptocurrency is something like this, volatile and unpredictable. I am very optimistic that it will going to bounce back and hopefully El Salvador could recover too.
the media circulating, the impact of the decline in el salvador debt bonds swelled to become one of the worst performers, but strangely when crypto was destroyed, el salvador actually bought bitcoin, president tayib bukele dared to buy bitcoin, maybe tayib bukele believed that one day bitcoin would high again, and will make their economy better again.
All eyes are on them, especially those countries that are planning to do what they have done regarding bitcoins. In my opinion, they are doing exactly right buying in the dip and continue holding it until the price will recover again. since their debt has increased this year compared to last, I'm sure they considering other opportunities and ways to counter that problem and bitcoins will become one of their main solutions.
There are people of them that are against to the continuous buying of their president. But they're like Microstrategy that does it whenever the market is plunging and they think that it's the right time to buy. They won't just buy bitcoin within a short term plan that they have.
It's the same for these retail companies that they know what they're up to and that's not just for the short term. I'm not sure about the debt but if the price of bitcoin gets lower and they've bought it at a higher price, that's not debt, that's paper loss.
It's the same for these retail companies that they know what they're up to and that's not just for the short term. I'm not sure about the debt but if the price of bitcoin gets lower and they've bought it at a higher price, that's not debt, that's paper loss.
Because of the recent massive drop in bitcoin, I assumed that this bitcoin drop had put them in debt.
Don't imagine them like a newbie (person) who just put all his money in Bitcoin. Remember that it is a country, they must use safe money to buy Bitcoin. Moreover, president Nayib leads the investment, he must consider everything before buying or selling Bitcoin. In my assumption, he must have a special team who work behind this investment, those who are professionals (experts) in crypto and digital investment. So, you don't need to be worried about them!!Regarding the debt, I assume they don't borrow money to buy Bitcoin. But they buy Bitcoin for the purpose of paying debts and improving their financial/economic level.
aware with that certain risks.Yes, they are on debt now but doesnt mean that the market wouldnt really recover or even shoot up more on new ATH's.It is really just a matter of time because we know the potential
of this market which couldnt really be taken lightly and to those who discriminate or doesnt really have trust will surely regret on missing out the train.
el salvador is in debt to the IMF to the tune of $287million
el salvador bought 410($15mill) of bitcoin..
some how i think $287m debt of IMF is the real issue, and far exceeds the failed attempt to blame bitcoin for el salv' debt problems
$15m vs $287m.. um.. id be blaming the IMF(aka dollar) not bitcoin
el salvador bought 410($15mill) of bitcoin..
some how i think $287m debt of IMF is the real issue, and far exceeds the failed attempt to blame bitcoin for el salv' debt problems
$15m vs $287m.. um.. id be blaming the IMF(aka dollar) not bitcoin
Because of the recent massive drop in bitcoin, I assumed that this bitcoin drop had put them in debt.
Don't imagine them like a newbie (person) who just put all his money in Bitcoin. Remember that it is a country, they must use safe money to buy Bitcoin. Moreover, president Nayib leads the investment, he must consider everything before buying or selling Bitcoin. In my assumption, he must have a special team who work behind this investment, those who are professionals (experts) in crypto and digital investment. So, you don't need to be worried about them!!Regarding the debt, I assume they don't borrow money to buy Bitcoin. But they buy Bitcoin for the purpose of paying debts and improving their financial/economic level.
no one can answer whether there is a debt or not el salvador at this time because only bukele knows,
in bitcoin ownership i think everyone is losing a huge amount due to the current price drop,
But since the purpose of abitcoin in this country is to use Bitcoin as a currency and coins bought by countries exist to support/help the flow of money, I don't think there's a downside there.
They are in debt but not only because of Bitcoin. That is why I don't agree with OP stating that way as it can't be particular which and where El Salvador got that huge debt. Perhaps, the country itself isn't focusing on Bitcoin alone, there are many things that went busy and they also spend money for that.in bitcoin ownership i think everyone is losing a huge amount due to the current price drop,
But since the purpose of abitcoin in this country is to use Bitcoin as a currency and coins bought by countries exist to support/help the flow of money, I don't think there's a downside there.
As we know that Bitcoin price is unstable, losses can also be expected if we sell them during corrections. But I think Mr. Bukele didn't do it but instead of keeping it.
This is just like saying institutions who have invested into Bitcoins are in debt now just because the value has dropped and it doesn't makes sense. They are government and not a newbie to panic sell the Bitcoins just for a drop of around 20% it shouldn't be concerning them as the Bitcoin will not be spent until it pumps back and infact bitcoin will be gamechanger for them if they buy during dips.
For sure those governments are pretty much aware on how volatility works because they wouldnt really make it as a legal tender if they dont know the risk behind and now the time has come then theyare surely been prepared.Losses or floating negatives would really be common and as long they dont sell anything then those losses arent realized or still imaginary on which they could rather take this
dip as their buying point too or simply making average downs.
So far we havent seen any word from them despite of the market decline but for sure they are accumulating in silence.
As in the above quote it looks like El Salvador government is quite interested in accumulating more considering the future rather thinking about the volatility.
no one can answer whether there is a debt or not el salvador at this time because only bukele knows,
in bitcoin ownership i think everyone is losing a huge amount due to the current price drop,
But since the purpose of abitcoin in this country is to use Bitcoin as a currency and coins bought by countries exist to support/help the flow of money, I don't think there's a downside there.
in bitcoin ownership i think everyone is losing a huge amount due to the current price drop,
But since the purpose of abitcoin in this country is to use Bitcoin as a currency and coins bought by countries exist to support/help the flow of money, I don't think there's a downside there.
This is just like saying institutions who have invested into Bitcoins are in debt now just because the value has dropped and it doesn't makes sense. They are government and not a newbie to panic sell the Bitcoins just for a drop of around 20% it shouldn't be concerning them as the Bitcoin will not be spent until it pumps back and infact bitcoin will be gamechanger for them if they buy during dips.
For sure those governments are pretty much aware on how volatility works because they wouldnt really make it as a legal tender if they dont know the risk behind and now the time has come then theyare surely been prepared.Losses or floating negatives would really be common and as long they dont sell anything then those losses arent realized or still imaginary on which they could rather take this
dip as their buying point too or simply making average downs.
So far we havent seen any word from them despite of the market decline but for sure they are accumulating in silence.
I have previously thought about the question of how the sharp drop in the price of bitcoin will affect the economy of El Salvador. It is clear that this will not be better. Previously, the wealth of the state was measured by the level of gold and foreign exchange reserves, in this case, it is probably more appropriate to use the term capitalization of the economy. The capitalization of El Salvador has certainly fallen. But if they do not sell bitcoins during the period of its fall, then there will be no losses. Now El Salvador has no other way but to continue buying bitcoins during this period of decline.
That is very right. How can they be of debt if they are not selling their bitcoin stash? The value may have gone down but if they will not sell, then, there will be no losses. As the btc price is slowly going up again, only those who bought at the dip can get their profits. El Salvador is a strong believer of btc, the reason why they keep on buying. So I don't think they will panic and sell at a loss. Who knows, they are buying more on this price?
I also believe the government of El Salvador has calculated the worst that could happen if they decide to invest in Bitcoin. So since the beginning of
the government of El Salvador buying Bitcoin, they did plan to invest in Bitcoin in the long term. Because the government of El Salvador has studied
Bitcoin before, so they understand how to profit from Bitcoin. So with the decline in the price of Bitcoin that is happening now does not make
the government of El Salvador panic and sell the Bitcoin they have. Actually the government of El Salvador has nothing to lose as long as they don't
sell their Bitcoins, so the decline in the price of Bitcoin became an opportunity for the government of El Salvador to buy more Bitcoin.
Moreover, El Salvador has legalized Bitcoin as a legal tender, which means that the government of El Salvador is a strong believer of Bitcoin.
so the drop in Bitcoin price won't worry them.
We know that El Salvador was the first country to make bitcoin legal tender in their country. And he's doing all of this while the price of bitcoin is rising. And they continue to notify us about their new investment in bitcoin. How much bitcoin did they buy, and when did they buy it? How much did they spend on the average price of a bitcoin? Because of the recent massive drop in bitcoin, I assumed that this bitcoin drop had put them in debt. 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. If this happens, then other countries will be really confused about making bitcoin legal tender. To make it legal tender, they might study the case of El Salvador.
It's just my speculation. What do you think about my speculation? I really appreciate your opinion.
It's just my speculation. What do you think about my speculation? I really appreciate your opinion.
It makes me wonder if you are confused about the definition of debt, at least in the context you have given. There is no debt with Bitcoin. Most countries are in debt regardless of cryptocurrency however because it is far more comfortable to spend money than it is to make money. Every country has a balance of imports versus exports, if they import a lot more than they export, then you will generally see them building up external debt over time. America is the most indebted country in the world, because others are willing to lend them money because they have always paid back their bonds and it is a stable, productive country. El Salvador may have borrowed money to buy the initial seed of Bitcoin or they might have had a surplus pot which meant no extra funding was involved at all. Do not assume that because something is paid up front, that it must involve debt.
I have previously thought about the question of how the sharp drop in the price of bitcoin will affect the economy of El Salvador. It is clear that this will not be better. Previously, the wealth of the state was measured by the level of gold and foreign exchange reserves, in this case, it is probably more appropriate to use the term capitalization of the economy. The capitalization of El Salvador has certainly fallen. But if they do not sell bitcoins during the period of its fall, then there will be no losses. Now El Salvador has no other way but to continue buying bitcoins during this period of decline.
Since the first bitcoins they bought since last June, bitcoin price crashed several times and by checking the times when El Salvador decided to buy more bitcoins we can see it's a drop time. Means that this time it's the best for it to buy and hold more. And as they don't cash them out, it can still be considered as a winning situation.By accumulating more than 1k bitcoins, El Salvador becomes a major player in the global bitcoin market and i don't expect them to have any doubts or fearness due to the price dropping.
At the same time, the price drop is not a good situation for small investors who follow their government decision without to know that it's so risky to deal with bitcoin .
This is just like saying institutions who have invested into Bitcoins are in debt now just because the value has dropped and it doesn't makes sense. They are government and not a newbie to panic sell the Bitcoins just for a drop of around 20% it shouldn't be concerning them as the Bitcoin will not be spent until it pumps back and infact bitcoin will be gamechanger for them if they buy during dips.
I have previously thought about the question of how the sharp drop in the price of bitcoin will affect the economy of El Salvador. It is clear that this will not be better. Previously, the wealth of the state was measured by the level of gold and foreign exchange reserves, in this case, it is probably more appropriate to use the term capitalization of the economy. The capitalization of El Salvador has certainly fallen. But if they do not sell bitcoins during the period of its fall, then there will be no losses. Now El Salvador has no other way but to continue buying bitcoins during this period of decline.
That is very right. How can they be of debt if they are not selling their bitcoin stash? The value may have gone down but if they will not sell, then, there will be no losses. As the btc price is slowly going up again, only those who bought at the dip can get their profits. El Salvador is a strong believer of btc, the reason why they keep on buying. So I don't think they will panic and sell at a loss. Who knows, they are buying more on this price?
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