Earlier today, El Salvadoran President Nayib Bukele tweeted that his country has added 410 more BTC. He previously expressed regret that his country had missed buying the dip. The country bought the flagship crypto at $36k per coin.
Nope, I was wrong, didn’t miss it.
El Salvador just bought 410 #bitcoin for only 15 million dollars 🥳
Some guys are selling really cheap 🤷🏻♂️ https://t.co/vEUEzp5UdU
— Nayib Bukele (@nayibbukele) January 21, 2022
Nayib Bukele Announces another BTC Purchase
Today, president Nayib Bukele announced that his country had added 410 BTC to its current holdings. He tweeted the information explaining that he purchased the coins at $36,585 per coin. He also said that he paid $15 million for the coins.
His announcement was followed by mixed reactions since his country has been making losses from purchasing coins. One of the people who took a jib at him was Peter Schiff, an outspoken financial commentator. Schiff believes that BTC has no value, and its price will eventually collapse to zero.
In his replies, Schiff said that he had warned Bukele not to buy any more BTC during the dips, and he did not listen, which resulted in the losses. Schiff also explained that he had had strong opposition when BTC prices surged, but no one congratulated him after correctly predicting bear runs. He even asked President Nayib to stop wasting Salvador’s money and bet with his holdings.
Despite the resistance, Salvador is determined in its crypto adoption quest. Recently, it revealed that it would offer crypto-backed loans to small and medium-sized companies by this April. However, a Bloomberg report indicates that Salvador is losing its credit ratings.
El Salvador Continues Buying BTC despite Making Significant Losses
El Salvador was the first country to fully adopt BTC and make it its legal tender last year. The country ditched the US dollar and settled for BTC. However, it took time before settling since it received backlash from its citizens and other nations. It gave free BTC cashouts for citizens who installed their Chievo wallets, but revolutions still happened.
The citizens struck several times, but the government remained firm in upholding BTC. Since the first purchase, the country has been adding to its BTC reserves in most dips, taking its total holdings to 1,391 coins. Now they have added 410 BTC to the existing 1391 coins.
According to Moody’s Investor Service, El Salvador has lost money through its BTC investment plan. Their money has been losing value in a significant way. Per Jaime Reusche, an analyst at Moody, BTC investment is quite risky.
He also added that it is way worse for a country like El Salvador since they are yet to rebuild their economy. The IMF has also raised concerns about the BTC investment plan by El Salvador. It now remains to be seen whether their crypto move is worth it.