The president of El Salvador just bout 420 BTC!

Kasabus

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Quote from: xSkylarx on November 02, 2021, 08:59:27 AM

Quote from: ultrloa on November 02, 2021, 08:47:13 AM

Quote from: ?? on ??

By buying so much BTC then they are sure that the magic will happen for the future, and they are a country that is currently using BTC as a legitimate means of payment so what they are doing now is all well planned even though the risk they receive is very large but in this case the agreement of certain parties has been agreed then Nayib Bukele does not want to waste this opportunity for the benefit of his country, This is all done for the benefit of the country and prosperity in the future.

There's no magic here since eventhough how promising bitcoin in terms of profitability for holding it for so many years still we have a huge risk that we might don't get the target price we set for future and sometimes a huge dumps will came and that can affect their economy but I'm sure he know on what he is doing since for sure he have experience advisers on his side and have a proper planning on what actions they need to do once the market collapsed on certain times.

I don't think they're just buying it for the sake of holding it; I believe it's to help their economy cycle since they legalized bitcoin, and I believe they'll offer it as a payment method just to get people to try it, or they're planning something big. Though, in terms of holding it, there is still a lot of risk because we don't know what will happen, but we should be prepared for losses as well as wins because there are times when it is dump. However, risking is the best option because you will know whether or not you will win.

Buying a lot of bitcoin could only mean a huge expense from the government's money so i really think that this has been well planned by the country's leaders. The risks is really big because the market's volatility could possibly create a huge drop of bitcoin price and they might end up losing their money in an instant.

However, if this big decision will possibly work in the near future, then it will also create a big progress in the country that will also benefit all its citizens. Although this is something to be fear of because of its win-lose scenario, but knowing bitcoin it will always end up into a a huge success.

DdmrDdmr

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There are lies, damned lies and statistics. MTwain

Their BTC purchases are, as far as I’m aware, made through their 150M $ Trust, and not from any other budgeting source. They are there to provide for the BTC to USD and vice-versa conversion within the Chivo System, and not as a separate budget to buy and hodl.

I’ve just come across a Salvadorian online newspaper that tries to put a number to their (unrealized) “benefits” made through these purchases:

See (Google Translated): https://www-contrapunto-com-sv.translate.goog/btc-76-millones-en-excedentes-supera-3-millones-capacitados/?_x_tr_sl=auto&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=nui

The net summary from the above table places the bookkeeping numbers with a 7.6M $ unrealized benefit as of 31/10/2021. Considering those, the Government seems to be drawing USD from the Trust, and using it to pay for a pet clinic, and just recently announced, 20 schools for the country, all while the bookkeeping balance meets the minimum of 150M $. We can see the accounting risk here right ?

Note: Actually reading to get the context goes a long way; much further than shooting blanks.

xSkylarx

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Quote from: ultrloa on November 02, 2021, 08:47:13 AM

Quote from: ?? on ??

By buying so much BTC then they are sure that the magic will happen for the future, and they are a country that is currently using BTC as a legitimate means of payment so what they are doing now is all well planned even though the risk they receive is very large but in this case the agreement of certain parties has been agreed then Nayib Bukele does not want to waste this opportunity for the benefit of his country, This is all done for the benefit of the country and prosperity in the future.

There's no magic here since eventhough how promising bitcoin in terms of profitability for holding it for so many years still we have a huge risk that we might don't get the target price we set for future and sometimes a huge dumps will came and that can affect their economy but I'm sure he know on what he is doing since for sure he have experience advisers on his side and have a proper planning on what actions they need to do once the market collapsed on certain times.

I don't think they're just buying it for the sake of holding it; I believe it's to help their economy cycle since they legalized bitcoin, and I believe they'll offer it as a payment method just to get people to try it, or they're planning something big. Though, in terms of holding it, there is still a lot of risk because we don't know what will happen, but we should be prepared for losses as well as wins because there are times when it is dump. However, risking is the best option because you will know whether or not you will win.

ultrloa

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Quote from: ?? on ??

By buying so much BTC then they are sure that the magic will happen for the future, and they are a country that is currently using BTC as a legitimate means of payment so what they are doing now is all well planned even though the risk they receive is very large but in this case the agreement of certain parties has been agreed then Nayib Bukele does not want to waste this opportunity for the benefit of his country, This is all done for the benefit of the country and prosperity in the future.

There's no magic here since eventhough how promising bitcoin in terms of profitability for holding it for so many years still we have a huge risk that we might don't get the target price we set for future and sometimes a huge dumps will came and that can affect their economy but I'm sure he know on what he is doing since for sure he have experience advisers on his side and have a proper planning on what actions they need to do once the market collapsed on certain times.

Mahanton

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Quote from: Slow death on November 01, 2021, 05:49:28 PM

Quote from: mk4 on October 28, 2021, 05:59:51 AM

Dude has already bought a few times when bitcoin dipped in price a bit, and publicly announced it on Twitter just like this instance. Don't tell me we're going to create a separate topic after every purchase lmao.

I also asked myself the same question, in a few months we'll see another topic saying that he bought more bitcoin.

so far I'm wondering what his objective is and what is the target price he intends to sell and what will he do with the money because the money is from the people and I don't think he tells the people what his objective is with every bitcoin purchase he makes

Just too dumb that he would treat up the money he had spent out on buying those coins was his own or personal where on the time he do make out profits then he would get those profits on.

Well, we cant really remove that kind of probability but since everything could really be seen on chain on how much had been taken off as a profit then he could anytime be sued out.

It just looks like their president is really that obsessed with Bitcoin but i wont say its bad but he should really know about the risk behind.

ene1980

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Quote from: Sanitough on October 29, 2021, 06:30:51 PM

~
I guess only Bukele knows where did he get the funds to buy bitcoin, or maybe he used to bought bitcoin with his own pocket when it was still very cheap and now he's reaping the fruit of his investment. Because we all know even before bitcoin's adoption in El Salvador, Bukele is already a bitcoin enthusiast and this is the reason why he pushed through a bill to accept bitcoin as a legal tender because he knows a lot about crypto and its potentials than any other Salvadorian citizen.

I was not aware that they have a young president, i thought someone old is ruling the country and Nayib Bukele is just 40 years old and no wonder he implemented these radical changes. Even i was thinking why would anyone take these initiatives but i was not aware he was young in politics. Not sure about his investment though, may be he was holding when the price was low or made money through any alts and reinvesting it and made news headlines Grin

.

Slow death

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Quote from: mk4 on October 28, 2021, 05:59:51 AM

Dude has already bought a few times when bitcoin dipped in price a bit, and publicly announced it on Twitter just like this instance. Don't tell me we're going to create a separate topic after every purchase lmao.

I also asked myself the same question, in a few months we'll see another topic saying that he bought more bitcoin.

so far I'm wondering what his objective is and what is the target price he intends to sell and what will he do with the money because the money is from the people and I don't think he tells the people what his objective is with every bitcoin purchase he makes

24Kt

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Quote from: 7788bitcoin on November 01, 2021, 05:15:57 PM

Quote from: dothebeats on October 30, 2021, 12:27:46 AM

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although I believe that that does not require any press release, news articles, or even a forum post whenever they do.

When mere speculators gets media attention and news articles let the President of El Salvador get his moment of shine with these news because he took the bold step to implement a rule no one did by accepting Bitcoin as a legal tender and anything he does will get these press releases. How the people of El Salvador will be reacting to these news is a different question but anything positive is a good news during a rally Grin

.

That's part of their marketing only. Since El Salvador is known to be the first country to make bitcoin as legal tender, we will expect more support to the crypto market especially bitcoin. Just to show maybe, that their decision to join this market is worth it. Nowadays, promoting something is easy as you can freely publish it via your social media channels. It will also raise awareness on what they are doing to supplement their move towards crypto.

hatshepsut93

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Bitcoin was created to take a way some power from centralized institutions, but now we have came full circle and are embracing a government pushing Bitcoin adoption to their people.

If Joe Biden will say tomorrow "I decided to buy 420 BTC", the rest of the government would have quite a debate about it and it's unclear if he would be able to do it or not, but this guy can buy any amount at any time and nothing can really stop him, so there's definitely some authoritarianism going here.

7788bitcoin

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Quote from: dothebeats on October 30, 2021, 12:27:46 AM

~
although I believe that that does not require any press release, news articles, or even a forum post whenever they do.

When mere speculators gets media attention and news articles let the President of El Salvador get his moment of shine with these news because he took the bold step to implement a rule no one did by accepting Bitcoin as a legal tender and anything he does will get these press releases. How the people of El Salvador will be reacting to these news is a different question but anything positive is a good news during a rally Grin

.

shield132

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Quote from: LoyceV on October 28, 2021, 06:08:36 AM

Quote

I can't understand how they're so sure it'll go upwards.

I'd say it's bluff: if it keeps going up, he did good. And if it drops, he'll just buy the dip.

No, you are wrong, if things keep going up, he will add the profit to the budget but if the things are going down, he will open short position on futures trading and will profit again (I'm joking Ofc).

Quote from: LoyceV on October 28, 2021, 06:08:36 AM

I'm more curious how they store it: who has access? Many exchanges lost their funds to hackers, it would be nice if that doesn't happen to a (poor) country.

I guess the president is verified on Binance and holds the money Cheesy

The most curious thing will be if he starts futures trading with high leverages. Do you wanna dip? Then do 2x leverage and it will look like you bought bitcoin at it's half price. I hope he won't use 10x leverage.

Idk why people are happy because of that but I would say, this is just a very poor decision/action. He acts like a person who is a kid but thinks that become a matured man (i.e. teen who tries to act cool but does all the shit in reality).

Ararbermas

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I hope bitcoin will go up more before this year end so that those people will not cry afterwards.. Lol because you know bitcoin seems not yet done seeking for strong support level at this moment in my view, i mean there's a chance it will attempt or restest those supports below the current price, and for sure if holders sees a strong bearish sign of course there will be a panic selling like what always happen. I hope not 420BTC?. that's massive!. Grin

Lucius

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Quote from: Rufsilf on November 01, 2021, 08:01:08 AM

But I can't deny that it's so insane to buy 420 BTC and it is so huge to buy it once and choosed to trust their funds in bitcoin.

Good morning @Rufsilf, you seem to have woken up from some long sleep if you think 420 BTC is a lot because El Salvador has bought 1120 BTC so far - do you think there is a word better than insane to describe one country buying so much BTC?

Maybe you still missed that Bitcoin is a legal tender in that country, so now think about why they buy Bitcoin and not, say, gold or Swiss francs?

Quote from: https://www.reuters.com/technology/el-salvador-adds-nearly-25-mln-bitcoin-state-coffers-says-president-2021-10-27/

Overall, El Salvador's treasury holds 1,120 bitcoin, according to official data, worth nearly $66 million.

Rufsilf

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Quote from: BlackHatCoiner on October 28, 2021, 04:31:47 AM

You can't really say this is a dictator, can you?

They bought 420 BTC, but I can't understand how they're so sure it'll go upwards. It's a whole country in the central America; their behavior seems like a teenager's who just learnt about the magic of Bitcoin in 2011 and bought bunch. I can't say Bitcoin is the least fluctuating asset at the moment and hence, the greatest investment strategy for a country.

Also, why would a dictator want to promote Bitcoin, a currency which is against their polity?

We can't really say that he is a dictator even if he joked once that he's the "World's Coolest Dictator"

Source: https://www.google.com/amp/s/amp.theguardian.com/world/2021/sep/26/naybib-bukele-el-salvador-president-coolest-dictator

It may sound unusual to see a president trusted bitcoin so much and eventually bought 420 BTC using their country's money. Anyways, we can't say such things because we aren't in his shoes and ofcourse being a president, we can say they studied and vote for it before buying huge amounts of btc. And President Bukele is also a successful businessman so it's safe to say that he sees something about bitcoin than us before making such huge move.

But I can't deny that it's so insane to buy 420 BTC and it is so huge to buy it once and choosed to trust their funds in bitcoin.

AakZaki

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The president is quite crazy to take this decision. Buying at a deep price of 420 BTC is a pretty big buy. The President of El Salvador is smart to take advantage of the unstable condition of bitcoin by increasing his bitcoin assets. We know El Salvador adopted bitcoin, and this is the trigger for bitcoin to start rising.
If the price of bitcoin continues to rise, Bukulele will profit, but if it drops from the entry price, maybe he will start buying again and so on.

SmokerFace

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It's good to know that BTC is being recognized on the government level. We must appreciate this rather than start criticism. Everything has some good and some bad aspects so rather than looking for Advantages and Disadvantages we must focus on what outcome we observe on recognition of BTC on the government level. Yes, it's true that all the policies must be carefully reviewed upon making it live.

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Quote from: DdmrDdmr on October 29, 2021, 11:57:59 AM

Actually, that information is still being echoed in many sites as real (i.e. https://www.buybitcoinworldwide.com/treasuries/#countries), although perhaps somebody from Bulgaria may have further insights as to whether the alleged decommissioned 213,519 bitcoins are indeed still in possession of the government, and more specifically, is there any public record that shows this on their balance.

@DdmrDdmr, the story of Bulgaria's BTC is long over, if the Bulgarian finance minister is to be believed their government has sold BTC on several occasions and it all ended in April 2018. The number of BTCs sold was never released (I was unable to find it), but it was reported that the sales consultant was Deloitte with the assistance of the FBI - hardly a single minister would have invented something like that. The site you linked obviously needs to correct the data regarding the fact that some countries own BTC - Ukrainian or Georgian politicians who have privately invested in BTC cannot represent the government/country as an investor.

As for the people from Bulgaria, see this comment, and for a news source check this post.

GeorgeJohn

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Quote from: worldofcoins on October 28, 2021, 07:48:02 AM

Good for the president!!

He made a good decision, bitcoin will definitely going to hit the 100,000 $ mark at some point in the future, I say it will be within 1-2 years.

Another thing that I'm curious about is if he bought those bitcoins after reading Elon Musk's tweet...I hope that's not the case.

Actually he made good decision for her country, but the news seems to be new now, but from my own understanding I'm not convinced that mr President purchase the 420 bitcoin recently, maybe it has happened long time ago, actually investing in bitcoin is wise ideas but it depends the time frame we purchase and how long is going to stay before huge profit will be made.

Kimonoe

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Quote from: dothebeats on October 30, 2021, 12:27:46 AM

News about bitcoin on El Salvador becomes boring and stale after quite some time, but still I see some posts appearing here and there whenever they buy bitcoins. Perhaps it is because they are the first country to openly state that they are buying the cryptocurrency, moreso than the actual relevance of the matter (which isn't really high IMO). But yeah, I still think it's great that they're committed to buying at the dips, although I believe that that does not require any press release, news articles, or even a forum post whenever they do.

actually this will be a good moment to follow it, of course with this news it will stimulate others to do the same so that prices increase and the market looks better. that way it will make its popularity even higher and hopefully it will have an even bigger effect, like that and so on

worle1bm

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Quote from: jeldzrey16 on October 29, 2021, 03:49:42 PM

This means if they are buying, we know its already the dip, we should put some longs here with 100% of our portfolio! Well be richer than we think!

I don't understand what you are saying here? The price dips usually happens because of the market volatility and the El Salvador took advantage of this and turn in into opportunity to buy some more bitcoin at the dip or say at an average price of $58k approximately.But what do you mean by it's already dip ? You will be having profits in the long run only if you are able to hold through all these dips and not panic sell.

Topic: The president of El Salvador just bout 420 BTC! (Read 582 times)