Nayib Bukele – the president of El Salvador – has issued a tweet saying he is going to be purchasing at least one bitcoin every day during the present market slump. Right now, BTC is trading in the $16K range, and the nation is looking to take advantage of the collapsing price.
El Salvador Clearly Still Loves BTC
The maneuver is stirring mixed reactions from analysts, some of whom claim it will ensure El Salvador’s digital dominance when the market repairs itself. They believe that when things eventually come back to form, El Salvador will have so many digital reserves to its name that it will never fall into a dark financial hole again.
However, there are others that think El Salvador is making a big mistake. They say that the nation has lost a lot of money already, as during the present dip, the country continued to buy assets on a regular basis. This hasn’t helped the nation in many ways given that the price of BTC has continued to slip deeper and deeper into oblivion. They are convinced that by the time BTC is done with its present bear market, El Salvador will have bought so much BTC and wasted so much cash that it will never rebound.
It’s difficult to say which outlook is correct. In any case, El Salvador has clearly shown itself to be one of the most BTC-devoted nations on the face of the Earth. The country was the first to declare bitcoin legal tender, doing so in September of last year. The nation declared that all people could use BTC to purchase goods and services alongside the U.S. dollar, which up to that point, El Salvador had long been dependent on.
Businesses were also required to accept BTC payments and could not discriminate against those who were using it to make their everyday purchases. The nation experienced heavy resistance from organizations like the World Bank, which stated it would not be helping El Salvador with the implementation of its bitcoin agenda given that the currency was too volatile and speculative, and thus could not be taken seriously by financial regulators.
A Lot of Resistance
El Salvador didn’t let this little setback bring it down too much. Instead, the country went forth without help and created a new wallet system it called Chivo, which is slang for “cool” amongst the people. The wallet system would allow citizens to store their bitcoin units, and each one was gifted with an early amount of $30 to help them get used to how crypto worked.
Many were not happy about allegedly being “forced” to play by BTC’s rules. There were riots and protests in the streets of San Salvador, the country’s capital city, amongst those who were happy simply using USD.
