Topic: What happens to $BTC when El Salvador sells their Bitcoin? - page 2. (Read 1031 times)

Are you asking the El Salvador government to sell their Bitcoin and use the profit to invest into other cryptocurrency, that is not a wise decision for them to take and it's going to be a wrong decision by the government because then they'll be taking on more risk than when they invested into Bitcoin. A decision that they can take and they'll have a valid reason why I'll support them to sell is when the government wants to invest the profits that they have made into other things that'll make the economy of the country to improve. A governments should improve the economical condition of his country hence using money to invest into factory that'll provide job for the citizens is better than just having profits stored up from Bitcoin that isn't being used to better the standard of living of the citizens.

I have to agree. Those bitcoins stored by El Salvador will be nothing compared to the over all bitcoin in circulation. And for sure, the time will come that they’ll eventually sell bitcoin and use their profits into something else. That’s for certain. However, once they sell, maybe price fluctuations may probably occur but it won’t leave crashing the market. But for now, it’s so unlikely seeing El Salvador selling bitcoin, they could be hoarding more bitcoins instead.

Do you think once their president is gone, they will leave their stance on crypto and BTC the same?

El Salvador luckily have a President who loves their country and dedicate his adminstration to serve his country and make it better, safer and more prosperous for the nation. El Salvador was known with very high criminal rates but recent years, it turned to be one of safest countries and in Bitcoin adoption, they are a pioneering country for Bitcoin Legal Tender.

Farther than legal tender, they have invested money, national treasury in Bitcoin, and their profit now is very good. Their success actually will motivate more countries doing similarly.
https://nayibtracker.com/

As the future would push in, more and more countries will understand what BTC may bring to them - the bigger price tag for it makes these countries and cities alike reconsider their stance, in my opinion.
Take a look at Vancouver, for example: The City of Vancouver is preparing to become a "Bitcoin-friendly city"
Of course, I do agree with you that not all of the world would become pro-Bitcoin in one swift decade or so - but time makes its magic little by little.

El Salvador is a small country with a small monthly income, but a lot of remittances are sent to that country. One of the reasons for them before investing in Bitcoin was that if they sent remittances there through Bitcoin, the costs would be reduced. However, it is not possible to speculate at this time whether they are fully enjoying this benefit, but they have become another country in the world that has the legal validity of Bitcoin. The interest they have shown in investing in Bitcoin as a small country has undoubtedly been commendable. Their holdings in Bitcoin are not very large, but they have benefited 100% from the investment they made in adverse conditions.

If they plan to sell Bitcoin, it is completely their own matter, but if they sell, they will not get more of the Bitcoin from which they collected it. Moreover, Bitcoin will increase its target in the future. If they sell now, they will have to sell Bitcoin at a lower price.

I believe that if they sell Bitcoin, it will not have a big effect in terms of volume, but there may be a small reaction in El Salvador, which is now known by many as a Bitcoin enthusiast country, but its effect could have a negative role world wide. However, even if it has a negative role in the short term, it will not have a big effect in the long term because Bitcoin will become more expensive in the future.

Whether ES will keep or dump its BTC is completely irrelevant - what does 6000 BTC mean on a market that has almost 20 million BTC in circulation (mined)? Besides, if these other countries weren't convinced in any way before that BTC could be of any help to them, do you think they would start investing in something this expensive today or tomorrow?

Today you need more than $1 million to buy 10 BTC, how much do you need for 1000 BTC?

I guess you will see it here https://www.statista.com/topics/8401/bitcoin-in-el-salvador/#topicOverview Click those bolded text since there's hidden links to show those reports presented on that article.

Also see this article https://finance.yahoo.com/news/el-salvador-calls-bitcoin-experiment-235235123.html We could still see that they are still successful for making Bitcoin as their local tender.

Maybe he just do that its because he want to report what he gain from their investment. And I think they are clear with their intention that they really want to invest on Bitcoin. Making it as a currency just like what they did when they are on early phase of their adaption is I think a second priority for using Bitcoin. But it seems everything looks great with them and we can really see that they are actually gaining with their Bitcoin investment.

The already do, in fact.
Source.

Is there any data to show that people there are using bitcoin as an alternative currency to USD or is this just our unfounded guess? I also read news about El Salvador but most of the news I see is just about their bitcoin investment. They never provide or mention the progress of using bitcoin as currency in their country and its impact on the economy, it is mostly just baseless speculation by investors about them. If you follow Nayib Bukele, you can see him showing off his bitcoin investment returns every day, no more, no less. With all that said, it's clear that they are just using bitcoin as an investment just like us, legalizing bitcoin as legal tender is just a formality.

However, what if El Salvador will not dump their bitcoin and begin encouraging other South American countries to buy bitcoin?

Has anyone thought of this?

They might begin having partnerships with each other and the beginning of this will be in the cryptospace which might later become a political partnership. South America can be a united continent under the banner of bitcoin and the cryptospace.

This is something to think about.

If El Salvador decides to sell off their bitcoin holdings, I don't think anything will happen to bitcoin. Bitcoin Can only experience big decline or correction depending on the amount of bitcoin sold in the arket. If they hold 20 -%30 of the total bitcoin in circulation , and decide to sell in a day, the market will experience a sudden dip but will gradually normalise. There where people who have sold some amount of bitcoin some time ago which made the market to dip and later correct back. So it's not a big deal.

The bottom line is none of them are decentralised, at best one or two is questionably
decentralised. The only kind of appealing thing is that their price is appealing to those
who think they will be early investors in an asset* which is going to follow Bitcoins
trajectory. For me its a big risk and anyone serious about Bitcoin will have the same view
I would think.

If you follows the topic carefully and analyzes the political, social and cultural edges of El Salvador, immediately without much analysis it is not understandable that this country supports bitcoin with the needs it has, in fact it is after a "conditional" loan from the IMF, which in reality puts it against the sword, for now it is the fourth "jaque" from the IMF, it did so in 2021, 2022, 2023, and 2024.

Bukele is a political genius, who managed to put El Salvador on the map of the trend, its income from tourism has improved, but those are only palliatives, in reality it needs that loan, but all that mentioned makes El Salvador become what many Hodler or bitcoiners do not represent a tangible entity of what bitcoin means beyond the mere fact of thinking of bitcoin as a payment processor or a reserve currency... it is a spear of ideals, which for now they have managed to sustain for almost 4 years, And if it would be a very hard blow to the niche's "ego", OP should not speak in the third person, the fact of what happens with El Salvador should involve us all.

It is unfortunate that it is spoken of as if it will happen,,, if Salvador, this or that, it is about empowerment, and that is what bitcoin means, we all become one country, one nationality, few understand that value.

I guess I don't always expect Bitcoin maxis who not only consider Bitcoin to be great, but declare absolutely every other conceivable investment to be terrible.

Anyhow, most of the replies here are the same: since there's absolutely no chance Bitcoin will go down, and absolutely no chance that all of the people of El Salvador are convinced otherwise, and they are both convinced that there's absolutely no chance there is a better investment than Bitcoin, then... of course they won't sell.

Maybe the maxis here are right, or maybe they are wrong. It sure seems like they are depending on a lot of things out of their control to reach these conclusions.

Outperformed BTC in what particular way, and can you mention some of these digital currencies. Nobody is saying that BTC is the only coin that can make people money, many altcoins pump, they are even called pump and dump coins, but how many of these altcoins have an actual utility, how many will be around in a few years time when the hype is over and how many people lose money in finding the 'one' altcoin that will make them money. You can say all you want to say about BTC for whatever reason, but you know BTC is above the coins you have in mind.

Well atleast if you know they aren't gonna sell their Bitcoin and buy altcoins then try and relate to what the effect will be if they were to sell their Bitcoin as I would also want to know if this will have any positive impact on the price market fluctuating and also just for consideration what if micro strategy and Micheal saylor decides to sell and more we all know the entire money he uses in buying Bitcoin is not entirely his as it's a company shares and so maybe possible some folks don't have same vision as him.

Just jogging my imagination here.

Remember that this country has considered Bitcoin a legal tender or alternative currency to US dollar, so they didn't buy Buying Bitcoin based on the investment side alone, but also to use it for day-to-day transaction in their country, so thinking about selling or liquidating all their Bitcoin portfolio at once according to Op, seem not very likely,  but they can sell some portion of their holdings.

Maybe OP wants the government of El Salvador to dump bitcoin and diversify into their legiteum currency since they have the potentials to turn El Salvador investment into 10x of their invested amount i guess...

OP, i do not contest that there are other coins that has outperformed bitcoin since they came into existence but my question is this; what is the sustainability of those coins? How can we identify them? are they worth holding for a long term?, this are the questions you need to answer because most people are interested in a currency that is valuable for them to hold for long and not some pump and dump coin that can't stand the test of time, all they do is pump and eventually vanish within a short period of time. Is that the kind of coin you will advise a whole country to diversify into?

El Salvador is one of the intelligent countries that took a good decision to adopt bitcoin, and they have multiplied their investment x2, isn't that a progressive investment? Do we need to be that greedy and look for projects that can offer x10 of our investment and in the end we lose all our money. Even if a project can only gives you x2 of your investment amount isn't it okay for you than putting your funds at risk of losing due to greed of maximizing your profits.

Perhaps, El Salvador is a small and poor country but they have made good progress from their investment in bitcoin while some large and rich countries are still adamant about bitcoin and has failed to buy and adopt bitcoin. It doesn't matter the amount El Salvador owns in bitcoins but what matters most is that they made good investment decision and it worked for them.

Alt season horn sound? 
In any case, more factors are needed to say that something like that started.
For now, the rally for BTC is still stronger, and the sentiment is clear, in my opinion.