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Topic: What happens to $BTC when El Salvador sells their Bitcoin? - page 5. (Read 1031 times)

avp2306

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Quote from: acroman08 on December 13, 2024, 06:06:41 AM

Quote from: legiteum on December 12, 2024, 03:22:03 PM

I know El Salvador doesn't have a large percentage of the total Bitcoin supply, and them dumping it would only be a small bump on the market for a day or two, but I would reckon the psychological effects would be pretty huge.

to who? I am curious why do you think El Salvador selling their BTC would have a huge psychological effect? Is it because they are a country? anyway, Personally, while it could have a psychological effect on some people I doubt it'll be significant because I feel like they don't have enough influence in the crypto community to have that much effect on people.

I guess to those people following them. El Salvador is somehow bring a lot of good discussion about their adaption for Bitcoin and if there's sudden changes of decision then they decide to sell provably that it will have psychological effect to some people especially if the media will sensualize the situation then create or add more scare to people. There's huge chance that a dump would follow after those unfortunate decision they made.

But I really guess selling all their Bitcoin will not happening for now since it looks like El Salvador government still hungry to accumulate more.

michellee

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No, I don't think about that because I am doubt El Salvador will sell some portion now reminds the Bitcoin price will increase high anytime. They will still hold for their future and if necessary they will buy more Bitcoin from their reserve.

Maybe that can make the price is down for a little or a big but Bitcoin will increase in the right time. And it is normal if we may see a decrease coming after they sell their Bitcoin but you should not worry because that will be a correction happen after the rise.
But if El Salvador decide to sell their Bitcoin, we should not complaint because that is their decision. We can only wait for what happen to the market after that.

CageMabok

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Quote from: FortuneFollower on December 13, 2024, 05:47:26 AM

As it was said - nothing would be happening with BTC in the long term from such a move, and then again - El Salvador is a smart country, they wouldn't dump it all just due to the FOMO clutching in.
If they understood Bitcoin, it wouldn't happen, only in case of a very big emergency, maybe.

From what you said it is actually quite clear that a country that already believes in Bitcoin and already thinks that Bitcoin can be an important asset for them, of course they will not just throw it away if El Salvador can still solve its problems with something else like fiat. Because parties or countries that already believe in Bitcoin will not hesitate to throw away their paper by buying Bitcoin and holding Bitcoin for the long term so that every thing that needs to be fixed will be tried with something else without sacrificing the Bitcoin they already hold.

fikrett

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Quote from: acroman08 on December 13, 2024, 06:06:41 AM

Quote from: legiteum on December 12, 2024, 03:22:03 PM

The market wouldn't feel it the way OP thinks, in my opinion.
It would create some fuzz for sure, but nothing would spur of it afterward.

Lucius

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If we only take into account the psychological effect of the possible sale of a relatively small amount of BTC that ES has, I don't think it would have too much impact on the price, especially if it happened in the middle of a bull run. It is true that many think that the ES is special because it passed a law declaring BTC as legal tender, but it is also true that the idea has not quite developed (so far) as it was intended.

So we have a country where maybe only 10-15% of people use BTC in some way, and a country that has so far bought about 6000 BTC worth a total of about $600+ million - while at the same time its debts amount to about $24 billion, and the poverty rate has increased even more in recent years and amounts to over 30%.

Still, who says Bukele doesn't care about his people? At least for those who can afford pets...

https://elsalvadorinenglish.com/2022/02/23/president-nayib-bukele-announced-the-inauguration-of-the-first-veterinary-hospital-in-el-salvador-chivo-pets/

acroman08

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Quote from: legiteum on December 12, 2024, 03:22:03 PM

FortuneFollower

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Quote from: Charles-Tim on December 12, 2024, 03:36:25 PM

El Salvador should sell bitcoin and buy altcoins. So that the market will react and the price of bitcoin may fall for a day or two. I am not interested to discuss about if El Salvador selling bitcoin than to let you know, that will not stop bitcoin to get to all-time high.

About buying altcoins, the country is not gambling but investing on good assets. Not pump and dump coins.

rodskee

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Quote from: legiteum on December 12, 2024, 03:22:03 PM

if their government sells bitcoin, no one’s going to be thinking what “something nice” they could have for themselves. the money the government will get will not be directly distributed to their citizens. it would be used for projects which isn’t even 100% certain to be successful but at least they have the funds to start with

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but why not invest in some other digital currency that has potential gains of 10x more?

because it’s too risky that’s it they can’t afford to try and lose even just a little bit of money because that’s not the government’s money that’s from the taxpayers

Outhue

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Quote from: legiteum on December 12, 2024, 03:22:03 PM

Has anybody thought of this?

El Salvador is a small, very poor country (average monthly income = $365). And they are a democracy. If you are an average citizen of El Salvador, you are probably thinking about the nice things you could get if your government sold all of that BTC at a huge profit (and yes, math: this isn't enough to make everybody there rich or something, but again, this country is a democracy, so...).

I know El Salvador doesn't have a large percentage of the total Bitcoin supply, and them dumping it would only be a small bump on the market for a day or two, but I would reckon the psychological effects would be pretty huge.

Of course you could argue that they would want to keep their BTC as an investment, given how much money they have already made on it, but why not invest in some other digital currency that has potential gains of 10x more? In other words, what if El Salvador is gripped by... mass-FOMO Cheesy

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Something to think about...

Very poor country because their average monthly income is $365? Well I am ready to shock you, the average monthly income in my country is $30+ and yes we have more population than EL Salvador, to me Salvador is richer than many countries out there including mine.

Thinking that if one is a citizen of El Salvador they should be expecting everyone to be rich because they got Bitcoin makes no sense, people need to understand that we can't all be rich in a country, it will ruin the country's currency and inflation will increase massively, to keep balance some people will have to be poor while some or even few will be rich.

Other crypto coins are way too risky for a country try to depend on it, that is why Bitcoin is the only reliable one, a country will collapse if they depend on a wrong crypto asset, Bitcoin is the true decentralized one and nothing else comes close to it.

Cryptomultiplier

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So far, I don't think that there would be much impact in the cryptocurrency market, if El Salvador as a pro Bitcoin country were to sell their current BTC holdings. There might be likely short term volatility experienced, but am sure it is not going to have a strong enough effect on the current price of BTC.

El Salvador turned to BTC to help strengthen its economy so with its current holdings which is not more than about 6000units of the total BTC, am sure potential buyers would rush in and the government of El Salvador would likely absorb the profit from BTC sales into its coffers rather than to its citizens.

legiteum

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Quote from: CryptoBuds on December 12, 2024, 10:34:07 PM

Bhutan is one of the countries that holds more bitcoin than El Salvador and they have sold bitcoin several times this year but do you see anyone interested or do many people know?

Nope. Nobody talks about them either. El Salvador, on the other hand, has a very big brand name when it comes to Bitcoin. Them selling would be a much much bigger deal.

Quote from: legiteum on December 12, 2024, 10:14:26 PM

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I would say if Trump cancel the idea of Bitcoin reserve in the US, the impact would be much bigger than El Salvador sold all of their coins.

Trump could absolutely devastate the price of Bitcoin with even the slightest gesture. 2024 with the year the Bitcoin community connected Bitcoin's future to Trump.

But rest assured, his recent moves show that he is serious about bitcoin and the idea of making the United States the crypto hub of the world.

Trump is serious about Trump. If you believe anything else, you obviously don't know anything about Trump.

Trump has been repeatedly saying that crypto should be "made in the USA", which Bitcoin is most emphatically not since it is independent of any single country. This could be nothing, or it could be him laying the groundwork to promoting his own coin over Bitcoin, which could easily make him a trillionaire.

Quote from: stadus on December 12, 2024, 11:52:56 PM

El Salvador will continue to buy Bitcoin, [...]

How can you be certain of that? The president there could be deposed tomorrow, and then the new president could reverse everything. Or Bitcoin could dip in price, which would trigger a rebellion there.

You see, by doing all of this, you have place the fate of Bitcoin at the mercy of democratic politics...

stadus

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El Salvador will continue to buy Bitcoin, and it might not have a big impact on the market if they sell it in the future, but they aren’t relying heavily on that outcome. What they really want is for their country to gain popularity in the crypto world, and they’ve succeeded in doing so. They expect investors to come in because they’re generally crypto-friendly, and I believe that was their goal from the very start.

As for their finances, I think they’ve managed them well. They’ve increased their revenue collections over the past few years, which shows they’re handling their economic affairs effectively.

https://tradingeconomics.com/el-salvador/government-revenues

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Government Revenues in El Salvador increased to 7065.80 USD Million in 2023 from 6650.90 USD Million in 2022. Government Revenues in El Salvador averaged 2953.59 USD Million from 1990 until 2023, reaching an all time high of 7065.80 USD Million in 2023 and a record low of 583.80 USD Million in 1990. source: Central Reserve Bank of El Salvador

pooya87

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Quote from: legiteum on December 12, 2024, 03:22:03 PM

El Salvador is a small, very poor country (average monthly income = $365).

El Salvador is a rather poor country but the average monthly income alone is not the indicator of it. Not to mention that you should compare that with the cost of living which is about 600 bucks if I am not mistaken.

BTW according to statista the national average monthly income stood at a mean value of 700.94 USD.

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And they are a democracy.

That doesn't mean they are going to make stupid decisions that some kids are thinking on the internet.

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but I would reckon the psychological effects would be pretty huge.

Whatever the size of the impact, it will be short. Tongue

Ale88

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Quote from: legiteum on December 12, 2024, 03:22:03 PM

.

Something to think about...

As other users have already pointed out, El Salvador only owns 6,000 bitcoins (give or take), I'm sure that just on this forum there are several users who own way more than that amount so, to answer your question, should El Salvador decide to sell all their bitcoin at once, well, nothing will happen. Absolutely nothing. And the same goes with the citizens, I mean why should they get "nice things"? That money won't be distributed.

CryptoBuds

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Quote from: legiteum on December 12, 2024, 10:14:26 PM

Quote from: Apocollapse on December 12, 2024, 10:02:55 PM

German government sold their 50K coins that worth $3.5 Billion at that time[/url] it just made Bitcoin price drop from $62K to $55K, the amount German government have is 6x times more in $ than El Salvador who have around 6K coins that worth $600 Million now.

But Germany selling their BTC was pretty normal and expected. El Salvador is totally different, psychologically speaking.

El Salvador became famous and respected in the crypto community because they were the first country to accept bitcoin as legal tender. But when it comes to their influence and impact on the market, they cannot be compared to whales like Tesla, Michael Saylor or blackrock because the market relies on the amount of bitcoin they hold to judge their influence. So their selling of bitcoins didn't even get much attention from the community, let alone cause panic, IMO.

Bhutan is one of the countries that holds more bitcoin than El Salvador and they have sold bitcoin several times this year but do you see anyone interested or do many people know?

Quote from: legiteum on December 12, 2024, 10:14:26 PM

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I would say if Trump cancel the idea of Bitcoin reserve in the US, the impact would be much bigger than El Salvador sold all of their coins.

Trump could absolutely devastate the price of Bitcoin with even the slightest gesture. 2024 with the year the Bitcoin community connected Bitcoin's future to Trump.

But rest assured, his recent moves show that he is serious about bitcoin and the idea of making the United States the crypto hub of the world.

legiteum

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Quote from: Apocollapse on December 12, 2024, 10:02:55 PM

But Germany selling their BTC was pretty normal and expected. El Salvador is totally different, psychologically speaking.

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I would say if Trump cancel the idea of Bitcoin reserve in the US, the impact would be much bigger than El Salvador sold all of their coins.

Trump could absolutely devastate the price of Bitcoin with even the slightest gesture. 2024 with the year the Bitcoin community connected Bitcoin's future to Trump.

Apocollapse

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We had experience this before, if El Salvador want to sell their coins, they go for it.

German government sold their 50K coins that worth $3.5 Billion at that time it just made Bitcoin price drop from $62K to $55K, the amount German government have is 6x times more in $ than El Salvador who have around 6K coins that worth $600 Million now.

I would say if Trump cancel the idea of Bitcoin reserve in the US, the impact would be much bigger than El Salvador sold all of their coins.

legiteum

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Quote from: CryptoHeadlineNews on December 12, 2024, 05:14:57 PM

And same digital currency that could also make them lose 10x of their initial capital, right?

Maybe. Or maybe make the WIN 10x of their initial capital.

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Because one thing you just need to know while investing in crypto or digital currencies is that while intending to invest in a high volatile currency, let's not forget to always think about the negative and positive aspects of it, because if an asset is able to give you 10x to 20x within a short period of time, don't forget that that's the same way you could lose or win too.

Bitcoin can go down, too.

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Hence, Bitcoin remains the best asset to invest in as a country, as they stand the chance of gaining gradually, which is far more better than keeping money in fiat currency in banks,

How do you know this? Based on the performance of the last six months? That could reverse at any time. There's no cosmic law saying Bitcoin will keep going up forever and ever. It could become obsolete and go to zero. Who knows.

finaleshot2016

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Quote from: legiteum on December 12, 2024, 03:22:03 PM

Some people here say there's nothing will happen but let me say this, there will be a massive selling pressure even they're just holding a 6000 BTCs. A slightly market crash will happen because of the selling pressure but of course, because of the current situation in every country, some people/countries will take advantage of it, if they sell, someone will take that smooth dip just to be ahead and make profit. People will worry because some of them is making el salvador as a standard for holding bitcoin and you know that every country that made a bold mode in early BTC is very influential today. If they abandoned BTC and make a fud about it, it can be worse so that's why we need to be updated on every news. Don't belittle things, this is crypto, everything can happen and can caused by single entity and what I'm saying is also applicable to countries like China and US.

Orpichukwu

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What will happen is nothing new to the market; it will just be another accumulator dumping their bitcoin and taking profit, and those who are not experienced will panic sell due to the fact that they will be calculating who will come next and what actually made them sell out their holdings, and after a short while it will all go back to normal as if such volume was never sold out.

It is what it is. Another thing that will also happen is that they will transfer ownership of their holdings to some other investors who are interested in it. They sell, others buy, and like I said, it's nothing new to the market.