El Salvador’s President Nayib Bukele tweeted earlier today that his government took advantage of the recent decline in Bitcoin prices to add 420 Bitcoins to the country’s reserves.
“It’s been a long time, but it’s worth it,” he said Tweet, “We just bought the dipping sauce!”
Soon after He tweeted: “We have moved from #Bitcoin We just bought it. In the time between tweets, the value of Bitcoin in the country has increased by about 0.4% or $100,000.
If 1, how do we make a profit #BTC= 1 #BTC?
We have a trust fund denominated in U.S. dollars, but the trust is jointly funded by U.S. dollars and Bitcoin.
When the BTC portion is revalued relative to the accounting currency (USD), we can withdraw some U.S. dollars and keep the trust for the same amount.
-Nayib Bukele (@nayibbukele) October 27, 2021
Many onlookers on the Internet are speculating about the significance of El Salvador’s special purchase of 420 Bitcoin, which is a popular slang term for marijuana consumption.
“Okay! Burn it!” Comment on Reddit user 86, Using another popular term in cannabis culture.
“I’m beginning to believe that he did it on purpose,” Reddit user speculated Egrett“Actually, now I check that he was born in 1981, so he might be. It’s interesting to see the results of millennials starting to inherit the world.”
It is ridiculous that the United States was defeated by El Salvador in terms of who owns more Bitcoin.
Our national policy should match every BTC purchased by foreign governments.
The next game is not the number of nuclear weapons, but how many bitcoins you own.
-Pump (@APompliano) October 27, 2021
420 bitcoins are worth about 24.6 million US dollars. This purchase brings the total amount of Bitcoin in the country to 1,120 BTC, valued at approximately US$87.4 million. The average purchase price in the country is estimated to be slightly higher than $53,300.
Savior Purchase two batches of 200 BTC for the first time On September 6 this year, I grabbed another one A batch of 150 BTC One day later, when it also became the world’s first manufacturing Bitcoin legal tender. September 19, El Salvador bought another 150 BTC, Which brings the total holdings of the country to 700 BTC.
However, other observers are less optimistic about the recent purchases, expressing concerns about the security of the country’s Bitcoin assets.
Twitter user @白云石HEX Responding to the president’s tweet, asking: “Who owns their private keys?” The user also asked what would happen if the country was hacked.
user @EnocWatcher Share these concerns and add that bitcoins purchased with taxpayer money should be stored in publicly disclosed entities.
read more: Uphold executives say Latin America will benefit the most from encryption
The governor of the Central Bank of El Salvador, Douglas Rodriguez, told Bloomberg earlier this month that the Latin American country continues to invest and expects that Bitcoin will soon lose its reputation as a speculative asset and become a legal payment system.
“We don’t see any risks. Maybe, upside risks,” Rodriguez Said. Bitcoin will “become a payment system, an inclusive financial system.”
After hitting an all-time high of $66,976 earlier this month, the price of Bitcoin recently dropped to $58,570. Despite the decline, cryptocurrencies have risen about 20% since September 7.
