The bitcoin market just gifted the El Salvadorians 15% discount

pooya87

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Quote from: asrinur on September 19, 2021, 01:07:26 PM

Meanwhile, the implementation of the use of Bitcoin is causing confusion in El Salvador. Many locals still don't know how crypto works or how they can use it.

You mean "bitcoin" not crypto. And this is how anybody learns about a new technology, by using it. There was a time when people didn't know how to use a computer too, or then later how to use the internet!

Meanwhile in El Salvador the government is taking advantage of the bigger discount and buying more bitcoin. 150 more bitcoins were bought bringing the total to 700 coins equal to about $30 million.
https://twitter.com/nayibbukele/status/1439815012642611203

asrinur

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I think the use of Bitcoin in El Salvador will revolve around sending money only and people using it to save, and its presence is probably only to compete with the US dollar currency there. Meanwhile, the implementation of the use of Bitcoin is causing confusion in El Salvador. Many locals still don't know how crypto works or how they can use it. as we know that most of the people of El Salvador live in poverty and do not have internet access or smartphones which are required to participate in the bitcoin network.

Transaction fees, processing times, and other hurdles also make this feel more like a beta test than a solution to many of the problems plaguing the country's poor.

Kong Hey Pakboy

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Quote from: zanezane on September 10, 2021, 06:00:04 AM

That is if the people buy bitcoin right now given how there's a lot of resistance to adopt bitcoin in the public there, I don't think that it's not good news but to the people that's using those, they're probably happy right now since the prices are OP has said, discounted.

For starters we don't need quantity in this context, just some people that can buy a lot of bitcoins would be enough. They will eventually get familiar with bitcoin and resist less when the time comes. It's just that the people that's going to make a lot of money in the future are the people who bought when bitcoin is at that price.

pooya87

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Quote from: STT on September 17, 2021, 12:23:29 AM

I'd say recent action is quite bullish, good momentum and appears to consolidate above a Fib level meaning

Bitcoin is definitely bullish, regardless of the recent drop. But I disagree about the momentum, we haven't seen any decent one yet. There are only small ones that last a little because there is still a lot of resisting bear whales trying desperately to manipulate the market into going down. I saw one the other day who was still planning and hoping for $10k!
Until these idiots run out of money we see short lived rises incrementing the price a little bit at a time.

STT

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The BTC price is just breaking above the half way line between the peak and low from the day of the national currency start and the sell off. I'd say recent action is quite bullish, good momentum and appears to consolidate above a Fib level meaning we could at least go onto to confirm within a range as we were previously. Just a rough take if we can manage to keep above the fake news spike I consider price in good recovery or fib level about 47k similarly.

Silberman

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Quote from: aoluain on September 07, 2021, 01:23:12 PM

Well they do get a 15% discount but the problem is the vast majority wouldnt see it that way,

The skeptics will be more fearfull
The Hodlers will know what to do
The informed will know they didnt lose anything before converting to $'s

What happened today?
Domino effect, markets dumped and long positions got liquidated which drove the
price south which in turn liquidated more longs, all 3.2 BILLION $'s worth.

This is just the way it is, people do not really understand what is going on and for the average person that just wanted to get 30 dollars in bitcoin from the government this is going to show them that bitcoin is too volatile for them, and many may decide to not deal with it for a long time due to this, but at the end of the day it is their loss, they are living in the most friendly country for BTC and if even then they refuse to adopt it then that is their problem.

jaberwock

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Quote from: zanezane on September 10, 2021, 06:00:04 AM

That is if the people buy bitcoin right now given how there's a lot of resistance to adopt bitcoin in the public there, I don't think that it's not good news but to the people that's using those, they're probably happy right now since the prices are OP has said, discounted.

There is a resistance by some people but that doesn't mean that everyone has a doubt about it. I mean if a politician is doing something, there is a 99% chance that they believe they would gain some votes for the next election, or at least keep their own voters happy, there are rarely ever a politician that does something knowing it would cost them too many votes.

It means that if president did this, then he knows that he will gain votes meaning there are more people who support it then who resist it. Of course, people who resist it would be heard more, because people who support it just goes lives their lives, whereas people who are against it will do protests and such to get to news, and since news are owned by super rich people who would be hurt by the financial fair play of crypto world, they are heard more as well. Long story short, people are happy that it is discounted, because most people in El Salvador is fine with it.

zanezane

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That is if the people buy bitcoin right now given how there's a lot of resistance to adopt bitcoin in the public there, I don't think that it's not good news but to the people that's using those, they're probably happy right now since the prices are OP has said, discounted.

justdimin

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Quote from: lixer on September 09, 2021, 06:36:19 AM

This could be the best thing that El Salvador is living right now. It is certainly something that is marvellous for them and not only they are getting it on a discount right now, they also had a great start by doing a DCA on the very first day. I hope that the price stays here for a few more days before going up, so that they could get even more money for the future.

I understand that it is not an easy task to handle, but it is definitely going to take some courage and bravery to keep a happy face. Glad that president already said that whales will drop the price on the day of the start before it happened so it gives more credibility on his decision.

That is what they are doing right now. They wanted to do DCA and that is why they are buying more. The great thing about it for the nation is that they could actually print more money and get more bitcoins, which could devalue their own nations currency but at the same time increase the amount of bitcoin they have. Of course they need to balance that out, they can't print unlimited amount of money and constantly buy bitcoins because when you are at Zimbabwe level then having tens of thousands of bitcoin will not be helping you.

However instead of printing money and giving it to wealthy people, if they just bought bitcoin with it then the regular amount of inflation will be recovered from the increases of bitcoin. I believe that their future looks super bright if they keep this up.

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Quote from: cafucafucafu on September 10, 2021, 02:31:05 AM

Quote from: NeuroticFish on September 08, 2021, 06:16:11 AM

Call me overly optimistic (or pessimistic if you prefer the dip), but I don't expect this sale last for long.

It has already rebounded quite strongly, hasn't it?

You're absolutely right. Firesale did not last long at all. Prices are building a nice floor at around $46k already and there is significant upward pressure given that the rest of the crypto market is picking up and there are more great news coming from Ukraine.

Keep buying the dip. It's worth it.

The lowest area lasted *very* short, but I've expected even better rebuild. Now the week-end comes and anything can happen, so I'd wait and see what will we have - let's say next Wednesday. At that point I can see if I was right or actually wrong. For now I'd also say #BTFD Wink

(but again, everybody should decide for himself whether to buy or not).

cafucafucafu

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Quote from: NeuroticFish on September 08, 2021, 06:16:11 AM

Quote from: cafucafucafu on September 08, 2021, 12:47:52 AM

Bitcoins are on sale again Grin

Certainly, El Salvadorians should be rejoicing at this news. In fact, all long term crypto holders should be.

Indeed. Still, people's psychology works different: people get happier when the price is rising, since although they'll buy more expensive, the coins bought increase in value and this helps them stay more confident.
That's also why most people are afraid to buy the dip: "what if it drops more?"

Call me overly optimistic (or pessimistic if you prefer the dip), but I don't expect this sale last for long.

It has already rebounded quite strongly, hasn't it?

You're absolutely right. Firesale did not last long at all. Prices are building a nice floor at around $46k already and there is significant upward pressure given that the rest of the crypto market is picking up and there are more great news coming from Ukraine.

Keep buying the dip. It's worth it.

adaseb

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The reason why you see almost no volume is because almost every major exchange was down that hour pretty much. Coinbase, Gemini, KuCoin, Kraken, Bitfinex and perhaps one more that I forgot about. Its pretty bad that this still happens this day whenever we get some severe move like that. Alot of people were upset that they couldn't login to their exchange to either sell their crypto or buy more at cheaper prices. Most people could only login AFTER price has already recovered.

Hence that is why you are seeing almost no volume on that bar because the exchange had connectivity issues and didn't process any orders. Surprisingly Binance, BitMex, Bitstamp, FTX all were good during that hour. So if you used those exchanges you could of easily arb'd some profit or bought bitcoin almost at $42K which is very very strong support. Best in these condition to leave stink bids and offers. Who knows, eventually one day they might hit. And since they are in the orderbook you won't have to worry about connectivity issues.

STT

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We're just back above the 2 day average which can be the start of a recovery to price bringing momentum and accumulative speculation back onto the graph.
The important point for El Salvador is bigger then the price in a singular point of entry its the every day usage that counts for more. They could swear off BTC from missing the large price gains already seen but I think the bigger point is the Dollar has not yet lost as large amount as it might in future. If the country is to transition away from Dollar to a wider global currency basis such as BTC or anything more trade based then its not too late as Dollar Index is fairly similar levels to 2 years ago and has not yet broken the lows first seen on the 2017 BTC rise, ie. inversely BTC may still gain during the dollar depreciation.

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Quote from: Ozero on September 09, 2021, 12:12:05 AM

Quote from: mk4 on September 07, 2021, 10:15:27 PM

Quote from: stompix on September 07, 2021, 11:52:29 AM

Nope, they were supposed to get $30 in bitcoin, so right now they didn't get a discount but a 10% shave since the airdrop was calculated at 52k, those 0.00057 are now worth 27$.

Really ain't that bad if we're just looking number wise, but freakin mainstream media is going to take this opportunity to once again crap on Bitcoin that's for sure. "Bitcoin airdrop to El Salvadorians immediately dropped 10% in value" or some crap.

In my opinion, for the residents of El Salvador, the sharp drop in the price of bitcoin was not a very pleasant surprise. After all, the protests in this country against the introduction of bitcoin as a national currency were also associated with the fact that bitcoin has a very high price volatility. On the day that people had to accept a certain amount of bitcoin, it plummeted in value. Such a fall looks like a well-prepared provocation against bitcoin.

it seems the el salvador community is not ready to make changes in a fast time and of course the el salvador government must prepare for all possibilities before actually changing the rules for using bitcoin as a whole in el salvador, and even from some articles my read, the el salvador government has not can make the chivoapplication (Bitcoin Wallet) run well so that the transactions made are messy, but in my opinion, it seems that el salvador has been under strong pressure from the US government authorities and also the IMF so far, because as far as i know el salvador is a country that does not have own currency and they have only relied on the dollar as a means of payment so far, and if bitcoin becomes a good means of payment in el salvador of course it will make the american dollar useless in that country.

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Quote from: pooya87 on September 08, 2021, 11:54:49 PM

Quote from: leea-1334 on September 08, 2021, 07:25:34 AM

BTC -10% may be true but I looked at alts-BTC pairs of -20% and put it all there. This will be like buying the dip and betting against alts as when I sell my alts BTC will gain back those 20%;)

The problem is when those shitcoins fail to recover when bitcoin eventually goes back up. Most of the times the best case scenario is they dump -20% but they only recover the 15% part and you still end up losing that 5% and worse case scenario they continue dumping and -20% turns into -90% like ETH for example that has not been capable of gaining its 2017 price against bitcoin even after 4 years.

Indeed this is the problem, but I suppose I should mention that I stick to the same alts I have been hodling along with BTC which is Monero, Litecoin and Ethereum. These coins in general drop against BTC when Bitcoin dumps, and also recover back to the original price, usually faster than BTC, at which point I turn it back into BTC and hold, then when it is rally time again, the pattern as you explain happens and BTC leaves everything behind.

It is riskier to try with the real shitcoins of course.

lixer

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Quote from: pooya87 on September 07, 2021, 10:49:24 AM

Today is the day when the first country accepted bitcoin as legal tender and that country is El Salvador. As El Salvadorians started buying bitcoin the market makers decided to give them a 15% discount so that they can buy more bitcoins with their $30 and any other fiat they put in themselves Cheesy

This could be the best thing that El Salvador is living right now. It is certainly something that is marvellous for them and not only they are getting it on a discount right now, they also had a great start by doing a DCA on the very first day. I hope that the price stays here for a few more days before going up, so that they could get even more money for the future.

I understand that it is not an easy task to handle, but it is definitely going to take some courage and bravery to keep a happy face. Glad that president already said that whales will drop the price on the day of the start before it happened so it gives more credibility on his decision.

OgNasty

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The drop was a good introduction to Bitcoin’s volatility. It won’t be the end. It’s great that they’re able to get more BTC for their products now, and the divide between holders vs spenders will only be amplified a little more as a result. I think in a short time it will be quite obvious who did what with their BTC.

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Quote from: mk4 on September 07, 2021, 10:15:27 PM

Quote from: stompix on September 07, 2021, 11:52:29 AM

Nope, they were supposed to get $30 in bitcoin, so right now they didn't get a discount but a 10% shave since the airdrop was calculated at 52k, those 0.00057 are now worth 27$.

Really ain't that bad if we're just looking number wise, but freakin mainstream media is going to take this opportunity to once again crap on Bitcoin that's for sure. "Bitcoin airdrop to El Salvadorians immediately dropped 10% in value" or some crap.

In my opinion, for the residents of El Salvador, the sharp drop in the price of bitcoin was not a very pleasant surprise. After all, the protests in this country against the introduction of bitcoin as a national currency were also associated with the fact that bitcoin has a very high price volatility. On the day that people had to accept a certain amount of bitcoin, it plummeted in value. Such a fall looks like a well-prepared provocation against bitcoin.

pooya87

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Quote from: Wind_FURY on September 08, 2021, 06:35:41 AM

OP, indeed it did! But I honestly didn’t expect this “mini-crash” to happen at this current price point. I actually expected everyone to relax, and wait for the new ATH like it was a countdown for a New Year’s celebration. Plus this may have slowed down the surge to our price predictions. Cool

Maybe they relaxed so much so that the order books got too thin letting the whales dump the price this much by selling their coins Cheesy

Quote from: leea-1334 on September 08, 2021, 07:25:34 AM

BTC -10% may be true but I looked at alts-BTC pairs of -20% and put it all there. This will be like buying the dip and betting against alts as when I sell my alts BTC will gain back those 20%;)

The problem is when those shitcoins fail to recover when bitcoin eventually goes back up. Most of the times the best case scenario is they dump -20% but they only recover the 15% part and you still end up losing that 5% and worse case scenario they continue dumping and -20% turns into -90% like ETH for example that has not been capable of gaining its 2017 price against bitcoin even after 4 years.

bryant.coleman

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Quote from: FatFork on September 08, 2021, 03:19:17 AM

Quote from: mk4 on September 07, 2021, 10:15:27 PM

Quote from: stompix on September 07, 2021, 11:52:29 AM

Nope, they were supposed to get $30 in bitcoin, so right now they didn't get a discount but a 10% shave since the airdrop was calculated at 52k, those 0.00057 are now worth 27$.

Really ain't that bad if we're just looking number wise, but freakin mainstream media is going to take this opportunity to once again crap on Bitcoin that's for sure. "Bitcoin airdrop to El Salvadorians immediately dropped 10% in value" or some crap.

I doubt it. The SEC vs Coinbase case is now likely to dominate all attention.

The Coinbase issue is dominating crypto-related news, but mainstream media never misses an opportunity to attack Bitcoin. So I don't think that they will sideline this news. The media will highlight the 10% drop by publishing the news in front page. But later this year, when Bitcoin jumps by 20% or 30%, they will never mention that the $30 airdrop has grown in value to $40. And regarding the SEC, the CEO of Coinbase (Brian Armstrong) has issued a strong statement related to the blackmail tactics used by the former.

Topic: The bitcoin market just gifted the El Salvadorians 15% discount (Read 308 times)