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El Salvador pledges to buy 420 BTC after the recent drop in prices

El Salvador's president Nayib Bukele, accompanied by US Ambassador to El Salvador Ronald Johnson (out of frame), speaks during a joint press conference at Rosales Hospital in San Salvador on May 26, 2020. - Bukele clarified on Tuesday that the country bought hydroxychloroquine for a little more than a half million dollars and not for 575 million dollars, as he previously said on a radio station. (Photo by Yuri CORTEZ / AFP) (Photo by YURI CORTEZ/AFP via Getty Images)

President Nayib Bukele has announced that the El Salvador government has taken advantage of the recent drop in Bitcoin prices and added 420 BTC to the state treasury.

This morning, Bukele tweets: “Wait a long time, but it’s worth it. We just bought a bath! ”

“The Bitcoin we just bought is profitable,” said the President of El Salvador excitedly shortly after the first tweet.

In the time between the tweets, the value of Bitcoin the country bought increased by about 0.4%, or $ 100,000.

Many have speculated on the impact of El Salvador’s purchase of 420 bitcoins, with Reddit user EGarrett commenting:

“I’m starting to think he’s doing this on purpose. In fact, I just checked to see if he was born in 1981, which could explain this behavior. It’s nice to see millennials begin to inherit. ”

420 bitcoins worth about $ 24.6 million. This transaction brings the country’s total BTC to 1,120 BTC, valued at approximately $ 87.4 million for an estimated average purchase price of approximately $ 53,300.

El Salvador bought two lots of 200 BTC for the first time on September 6 of this year and got another lot of 150 BTC a day later. On September 19, El Salvador bought another 150 BTC, bringing the country’s total inventory to 700 BTC.

However, other observers expressed concern about the security of the country’s Bitcoin holdings.

Most prominently, the Twitter user dolomiteHEX responded to the President’s tweet with the question:

“Who has the private key? What happens if the country is attacked? ”

El Salvador’s central bank director Douglas Rodriguez told Bloomberg earlier this month that the nation continues to invest in the expectation that Bitcoin will soon lose its bad reputation as a speculative asset and become a payment system.

“We don’t see any risks. Bitcoin will become a payment system, a system that includes finance. ”

Bitcoin price recently fell to $ 58,252 after hitting an all-time high of $ 67,100 earlier this month. Despite the decline, the cryptocurrency is still up around 20% since September 7th.

Source: TradingView

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Annie

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.