Since the bitcoin price decline began, El Salvador and its president Nayib Bukele have come under scrutiny. The country’s bitcoin plan had seen them buy over 2,300 BTC, but the bear market had wiped out a significant portion of the value of their holdings. Nevertheless, Bukele did not back down from his position that bitcoin would be good for the country’s future and said that El Salvador would continue to buy bitcoin.
1 bitcoin per day
Although more than $60 million in value has been wiped from El Salvador’s bitcoin holdings, Nayib Bukele said the country will continue to buy BTC. In a recent tweet, the president explained that there is a new bitcoin hoarding strategy for the country.
According to him, El Salvador will start buying 1 bitcoin per day. As for when it will start, the president explained that it will come into effect on Friday, November 18. There was no timeline for how long it would last in the tweet.
We buy one #Bitcoins every day from tomorrow.
—Nayib Bukele (@nayibbukele) November 17, 2022
Bukele received support from Tron founder Justin Sun, who said that TRON DAO will also follow in El Salvador bitcoin and buy 1 BTC every day starting Friday.
— HE Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) November 17, 2022
At such rates, the buying spree would rapidly increase El Salvador’s bitcoin holdings, which currently sit at 2,381 BTC at the time of this writing. The country also completed a year of BTC as legal tender despite mixed reactions from residents about it.
BTC trending in the mid $16,000s | Source: BTCUSD on TradingView.com
El Salvador has been placed in an unstable position following its decision to hold BTC as part of its treasury. The country that’s already been debt-stressed recently received an offer from China to buy back this debt, but Bukele explained that the country continues to tread carefully. “We are not going to sell to the first bidder,” he added.
As for where the country stores its Bitcoin, the president dismissed rumors that he was holding his BTC on the now bankrupt FTX exchange. This was confirmed by Binance CEO Changpeng Zhao, who posted on Twitter that he had spoken to the President and that El Salvador had nothing to do with FTX.
Currently, the value of bitcoin from El Salvador sits at $41 million with an unrealized loss of over $65 million. The country has shown no indication that it plans to sell, and its holdings could cross 3,000 BTC if it continues buying 1 BTC until the next bull market.
Featured image from Forbes, chart from TradingView.com
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