JVTech News Bitcoin is going down, but this country is taking advantage of the cryptocurrency crisis to buy 1 bitcoin a day
The cryptocurrency winter and the fall of some industry giants doesn’t seem to make anyone unhappy. With the price of bitcoin plummeting, some are seeing sales ahead of their time. Such is the case of this country that intends to buy 1 bitcoin per day to make the most of the crisis.
This country continues to hoard bitcoin
From its peak of around €54,000, bitcoin has been steadily declining to a price of €16,500, at the time of writing. Thus, it is clear that 2022 will not be the most profitable year for investors and other bitcoin miners.
Oscillating between ups and downs, cryptocurrency volatility continues to make dreamers. In this sense, many take advantage of these low points to buy BTC at the best price. Such is the case of El Salvador, which confirms its title as the country of Bitcoin.
In fact, the smallest country in Latin America located between Guatemala and Honduras has been using bitcoin as legal tender for more than a year. Despite the price drop, its chairman, Neb Bukele, did not seem concerned since he announced his desire to buy bitcoin to increase the cryptocurrency stocks in the country.
To do this, the government intends to “buy bitcoin every day.”
This announcement was relayed via the Twitter account of the head of Bitcoin Pro, Neb Bukele:
As of November 18, 2022, El Salvador has committed to buying 1 BTC per day – but it’s still not clear when it will stop…
El Salvador: the country of Bitcoin
This government commitment should enable El Salvador to provide its already huge reserves with liquidity. In fact, the country currently holds 2,301 bitcoins, or 37,966,500 euros at current prices.
Although it may seem excessive, El Salvador has every reason to stock up. Since September 7, 2021, El Salvador has become the first country in the world to make bitcoin legal tender. This initiative was taken by the President of El Salvador, Neb Bukele, and cryptocurrency enthusiasts among others.
So the government continues the path it has taken, i.e. experimenting with daily use of bitcoin on a very large scale, despite the huge reluctance of the population.
Last month, a poll showed a less optimistic reality of the situation. Of approximately 1,269 responses, 77.1% of the population wanted El Salvador to stop “spending public money to buy bitcoin.”
In this sense, key stakeholders do not necessarily participate in the maneuvers of their leaders. Many fear another drop in the price of Bitcoin. In this type of scenario, the country’s coffers would see a significant drop in value, albeit for Salvadoran taxpayers. However, Neb Bukil is optimistic and intends to use the context of the decline to hope for a capital gain should the opposite situation occur.