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Since the bitcoin price drop began, El Salvador and its president Nayib Bukele have basically been put under a magnifying glass. The country’s bitcoin plan had caused it to buy more than 2,300 BTC, but the bear market had wiped out a significant portion of their holdings’ value. Nevertheless, Bukele has not backed down on his position that bitcoin would be good for the country’s future, saying that El Salvador will continue to buy bitcoin.
1 bitcoin per day
Despite more than $60 million worth of El Salvador’s bitcoin holdings being wiped out, Nayib Bukele says the country will continue to buy BTC. In a recent tweet, the president explained that there is a new bitcoin collection strategy for the country.
According to him, El Salvador will buy 1 bitcoin per day. As for when this will begin, the president explained that it will go into effect on Friday, November 18. There was no timeline for how long this will last in the tweet.
We’ll buy one #Bitcoin every day from tomorrow.
— Nayib Bukele (@nayibbukele) November 17, 2022
Bukele received support from Tron founder Justin Sun, who said TRON DAO would also track El Salvador’s bitcoin and buy 1 BTC every day starting Friday.
We echo @nayibbukeleinitiative in buying #Bitcoin daily. We’re going to buy one too #Bitcoin every day from tomorrow! @rondaoreserve @rondao https://t.co/cRqfBIPKGR
— HE Justin Sun🌞🇬🇩🇩🇲🔥 (@justinsuntron) November 17, 2022
At such rates, the buying spree would quickly increase El Salvador’s bitcoin holdings, which currently stand at 2,381 BTC at the time of writing. The country has also completed one year of BTC as legal tender, despite mixed reactions from residents.
BTC trending in the mid $16,000s | Source: BTCUSD on TradingView.com
El Salvador has been thrown into an unstable position following its decision to hold BTC as part of its treasury. The country that has been struggling with debt lately received an offer from China to buy off this debt, but Bukele explained that the country remains cautious. “We are not going to sell to the first bidder,” he added.
As for where the country stores its Bitcoin, the president has dismissed rumors that it kept its BTC on the now-bankrupt FTX exchange. This was confirmed by Binance CEO Changpeng Zhao who posted on Twitter that he had spoken with the president and that El Salvador has nothing to do with FTX.
Currently, the value of El Salvador’s bitcoin sits at $41 million with an unrealized loss of over $65 million. The country has shown no indication that it intends to sell, and its holdings could exceed 3,000 BTC if it continues to purchase 1 BTC until the next bull market.
Featured image from Forbes, chart from TradingView.com
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