Topic: Two years ago today, El Salvador adopted Bitcoin as legal tender - page 2. (Read 421 times)

His mistake was similar to Saylors. He should of bought earlier or bought more earlier instead of later. After musk announced his purchase that is when both of them have been buying bitcoin aggressively. And they bought way too much above the $50K range. And it ended up giving them a horrible average.

Saylors average is maybe $30K or $31k or so and he is barely above it and the presidents is even worse. Both should of bought more when Ftx collapsed and prices were less than $20K but both didn’t do much buys in that area, they instead bought a lot in the $40-60K range. Can’t blame them I guess.

I don't think Nayib Bukele is going to be able to meet his target of 100,000 BTC in 2024, judging by the 2381 BTC El Salvador currently have. Doing a little maths, El Salvador has 2.4% of the targeted amount of Bitcoin in their possession, I wonder how he's going to get the remaining 97.6% in 16 months. Even the volcano powered Bitcoin mining farm cannot make this happen within this time frame. I expect the president to maximize the bull season and sell some of the nation's stash and reinvest during the bear season.

El Salvador is not going to benefit from their Bitcoin holding until they sell their coins. So if during the next bull run they will at some point have two times higher value but fail to take the profit, it will all mean nothing. But if Bukele will do it, it will be a very bad look for him - it would look like he doesn't believe in Bitcoin.

Also, a far more interesting statistic is the number of Bitcoin payments per day in El Salvador, or amount held by individuals. Because that's what adoption is about.

Appreciated with El Savador president brave for adopting Bitcoin as legal tender and today we are celebrating two years after bitcoin becoming legal currency transaction there. Actually many people disappointed when first time Bitcoin as legal tender transaction there, Bitcoin price around $43k and ever up to all time high price around $64k before going drop drastically under $16k.
For El Savador citizen, they are most happiness with Bitcoin become legal tender transaction due good progress with tourist coming there and they earn much profitable trough tourism sector. Its not problem have to face Bitcoin in lower price right now because Nayib Bukele success make interested with many tourist going there and increasing up years by years for giving positive impact with El Savador citizen.

he wasn't interested in selling it because from the start he invested using his country's money not his personal money, so the pressure on him wasn't too great. and he also believes that bitcoin is a potential asset and holding it in the long term can give him high profits in the future.

his reason for holding bitcoin was very correct because with the investment and implementation of bitcoin in his country it became a special attraction for el savador and that made his country a destination for bitcoin activists and various companies to invest in this country and that made el savador become special country and known globally.

The actions of President Nayib Bukele are laudable and audacious. Heavy bitcoin investment and tenacity despite market turbulence send a strong message. Its unclear if the danger justifies the benefit. The advantage is great, but such a plan has huge economic repercussions.

If more countries follow El Salvador, they must assess the merits and cons. More than profits, a nation's economy needs stability and long-term health. My opinion is that Bukele's ambitious strategy should be a case study rather than a model. His optimism may encourage more countries to examine crypto, albeit cautiously.

The approach to which bitcoin is being adopted by the Government should be commended, I can say the President is a man with foresight. Government of some countries are busy putting restrictions here and there on bitcoin, but here is a man that is very optimistic about the future of his country and has decided to invest such huge amount on Bitcoin and is even ready to do more.
This singler act will encourage citizens education and adoption of bitcoin significantly in the country.

Wow it's already two years, but to be honest it seems the El Salvadorian aren't interested to use Bitcoin as a currency. We always hear Nayib Bukele is keep buying Bitcoin and hold, he also not use Bitcoin as a currency. I'm not saying it's wrong or the Bitcoin acceptance as legal tender was a mistake, but this reality might be same to other countries. So as long as Bitcoin is accepted as a commodity or asset, it's already enough.

I don't think other countries leaders can follow his steps in this aspect because, they will be afraid if they leave the government office tomorrow what will happen to the BTC he or she helped the government to purchased, and it will be the reason many presidents will not hold BTC for long before they will release them for sale to get their capital back and use the income to establish their personal company. If the El Salvador president is waiting for the price of BTC to reach$100k before he can sell their BTC, it will make him not to benefit much from the investment because, it will take like 10 or 11 years before the price of BTC will cross above $100k based on the current price of BTC. I love what the president is doing to improve the resources of the country, and many foreigners are coming into the country to established many companies because of the standard environment El Salvador president has created for investors to live and to achieve their goal in the country. Well, there are many leaders who can do what he is doing but to allow such people to become a president that is where the issue lie Because, wealthy politicians need to back you up with finance for your campaign and influence others people to support before you can become a president and you must pay back with huge amount of money they have spend on your campaign, which it will make some Presidents not to hold BTC long before they can sell.

Is what you say true? I often hear news about El Salvador, but I don't know anything about news about the Central African Republic. This is sad because both were the first countries to adopt bitcoin as legal tender but had mixed results. Although, El Salvador does not have many outstanding achievements because we are going through a difficult bear season and the world economy is in crisis. But they are fine with their choice. Meanwhile, the Central African Republic has failed. What a pity for them.

I would love for countries to adopt bitcoin as a legal currency and to strive for that, but relying on bitcoin as a reserve is a mistake, especially if we talk about a rate of more than 10%, as betting that the price will go to 100 thousand is a bet on a high-risk investment and may pose a problem in the state budget.Bitcoin is still an evolving experience, and countries betting in this way may lead to a bad appearance of Bitcoin, just as the dates of El Salvador's purchase of Bitcoin were mostly wrong or rushed.

Interesting information that I did not mind to notice if you don't share it.

From El Salvador's Bitcoin legal tender two years ago, price of Bitcoin over last two years and the negative net profit of El Salvador, let's think. Is Bitcoin legal tender a game-changing factor for Bitcoin adoption and its price ?

If we look at El Salvador, it is not a game-changing factor. The Bitcoin adoption depends on many factors, not only Legal tender.

Balance Sheet History of El Salvador investment in Bitcoin

It’s difficult to predict for certain but it’s derinitely plausible that other countries may adopt Bitcoin as a form of currency in the future. El Salvador's move to make it legal tender sparked big interest & may inspire other nations to explore similar possibilities. Each country has unique circumstances & factors like regulatory frameworks, economic stability, public acceptance & government attitudes will play a significant role in determining whether they embrace Bitcoin or not.

Nayib Bukele have taken the whole world by a surprise after he invested so much in bitcoin and made it legal in his country. He has not been moved to sell any of them even when the price went down by millions of dollars of what he bought most of them. This is the type of mindset every bitcoin enthusiast is suppose to have after investing so much in bitcoin. Very soon, he will see the result of his patient and the bold step he took in investing so much in bitcoin. Good things takes time before the results can be seen.

About other countries not following in his path, might be because they don’t have that much confidence to invest so much in bitcoin or prepared mind to bare with the volatility of the market. This is not a competition, it doesn’t mean they should invest so much in it but adopting and legalising the use in the country will help in bitcoin adoption.

He is just calm and never sells any because people are expecting too much from his decision about adoption. If ever he showed worries and sold them, he faced several issues and criticism which is why he preferred to hold and it was good. In fact, it was just 2 years since accumulation and he still needs to wait for another 2 years in order to see profit from it.
I'm not going to wonder why people only see the negative about having Bitcoin rather than seeing the positive one. If Bitcoin becomes bullish, will the people of El Salvador become happy? Hmm, will see their actions 2 years from now when the price of Bitcoin is already $60k above.

I am not sure if Nayib Bukele is scared of Bitcoin. Otherwise, he should have invested more when Bitcoin had been playing the $16K zone. So his Bitcoin average price would be reasonable right now. As per your calculation, his portfolio was dumped due to Bitcoin investment and it's been a long time since he made legal tender. So basically it's a negative impact on those who were wondering to legalise Bitcoin. If a few countries follow El Salvador they might be scared and probably that's the reason we haven't seen any country that makes legal tender after El Salvador.

Even though he's still not in profit right now I respect the government for not selling when the Bitcoin price fell and for still holding. I believe that sooner or later they'll make a huge profit in the next bull run. The only thing they need right now is patience.

In addition to that, they could potentially increase their investment by buying more now as Bitcoin's price is almost half of what it was when they initially invested.

It is too soon for countries to accept bitcoin as legal tender, regardless of their size. But it is not soon for buying it as a reserve currency and slowly building up their bitcoin wealth. In this case bigger countries with bigger economies can do it a lot better than El Salvador with its small economy can.

It seems that some trackers have lost track (pun intended) of the total number of bitcoins bought by El Salvador’s government. The article in the OP references 2.381 BTCs, which is the figure provided by buybitcoinworldwide as of 21/07/2022 (same figure as show on this other site).

Bukele claimed on the 17/11/2022 that they’d be buying 1 BTC per day from the following day onwards. Were that to be so, the figure nowadays would be set to 2.675 BTCs (2.381 + 294 BTCs purchased at a rate of one per day since the 18/11/2022). Of course, nobody can contrast whether they are still being faithful to this daily purchase, and by the looks of it, bitcoin treasury trackers are giving it a pass and seem to have stopped time on November 2022. No sales mentioned, but also no transparency to allow anyone to follow the government’s stock of bitcoins.

I don’t know where the article referenced in the OP draws the idea that the government there has "set a target of owning 100.000 BTC by 2024"(100K BTCs). I haven’t managed to find any references to it to contrast the figure, and it does seem pretty far-fetched coming from the potential of 2.675 BTCs it has/may have/who knows now. He did mention BTC to have a price target of 100K $ for 2022 (obviously not met), which makes me wonder if the author of the article referenced in the OP has not muddled-up.

Note: '.' taken in my post is a thousands separator. It does sometimes get messy reading '.' or ',' to that effect depending on where we reside or who wrote this or that.

Take note that BTC is no longer a legal tender in Central African republic, their BTC plans failed and the decision of leger tender status was revoked, the country is one of the poorest in the world and they lack basic things like electricity and even internet connection, it was surely going to be difficult to use BTC in that country.
I don't think so, other countries will have to decide for themselves, but i don't think developed countries will be interested in doing this right now. El Salvador is doing well to promote BTC, but many people in the country still need to learn how to use BTC in a totally decentralized and self custodial way, many of their initiatives are focused on centralized solutions, but it is understandable as it is a centralized government behind it all.