El Salvador bought more BTCs

[PercT4b]

Apparently Bukele bought another "Dip" according to his last tweet, but there's something that I don't get in this move, let me explain.


How could someone consider a 44k resistance a dip?....right now we are in a period of retracement after a big upward move started in July; I wouldn't have been as comfortable as him investing so much money (remember that we are talking about one of the poorest countries in the world) with the probability of a massive bearish crackdown that could take us back to the 29k level.


I know that could be a "long time holder" move, but he has a reputation to defend, with a skeptical and poor population living in awful conditions, so, in my opinion, we have two possible cases:

1) He is a fool and apparently is comfortable with making such a risky move (a long bearish period can still be a possibility).

2) He probably knows (please don't take me as a conspiracy theorist, I'm just trying to imagine) that someone is gonna start another bull run soon, 'cause El Salvador attracted the attention of many big crypto investors, so a confrontation between Bukele and them about this topic is not so unlikely.


Let me know your opinion about this.

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[dupee419]

A long bearish period could actually appear, in my opinion, what he did is such a bad move considering El Salvador's current state and how neutral their citizens are about BTC, now I don't know if this is a demand coming from their citizens or the government alone, but buying more bitcoins at this point is what I think redundant, but since I have no data to back my statement up, feel free to correct me on this one.

[mk4]

Ehh, the dip buying is a bit more of a PR move in my opinion. He "only" bought 150 BTC, which is more or less $6.8 million. Whereas while El Salvador is definitely not a powerhouse country levels of wealthy, I don't think that $6.8 million will make a significant dent on their balance sheet.

[hatshepsut93]

Governments shouldn't use taxpayer's money to participate on a highly speculative and volatile market, that's like common sense.

2) He probably knows (please don't take me as a conspiracy theorist, I'm just trying to imagine) that someone is gonna start another bull run soon, 'cause El Salvador attracted the attention of many big crypto investors, so a confrontation between Bukele and them about this topic is not so unlikely.

I don't think he has any insider knowledge, he's just a president with too much power, and it's ironic because Bitcoin was created to resist this kind of power.

[DdmrDdmr]

This is my hypothesis, posted on another thread a while ago:

I haven’t seen it around clearly exposed, but I figure that those 700 BTCs are meant to back the existing BTCs within the Chivo system, and not so much intended to hold as part of the countries reserves. With now over 1,1 Million Chivo wallet users, presumably nearly all will have redeemed their 30$ in bitcoin voucher, so the 700 BTCs kind of backs current redemptions (roughly, give or take).

While the media keep on making it look like El Salvador is accumulating bitcoin in its reserves much like Microstrategy or Tesla, they are likely covering what needs to be done to back the virtual BTCs people have in their Chivo wallets. The government passed a bill to reserve 150M $ to the Bitcoin Law rollout, so I figure this is part of it.

[fiulpro]

I do think that from the moment El Salvador made bitcoins legal they had already decided on this part which does mean that the government might buy even more for the long run, I do think that this is not really a bad move for sure, since for the long run that might work out wonderfully and the country is not exactly rich-rich and developed fully as well, do I do think that it's easier for them to take risks. They might just be trying this out and seeing how things work out for real.

I do think that, at the end of the day, this might not be a bad move if they monitor the whole market correctly which is not really a hard task since they can very easily hire crypto specialists and take care of everything as well.

If the bill is passed and some amount of preserved it will help in excessive dip in the value if things go wrong .

[aoluain]

This is my hypothesis, posted on another thread a while ago:

I haven’t seen it around clearly exposed, but I figure that those 700 BTCs are meant to back the existing BTCs within the Chivo system, and not so much intended to hold as part of the countries reserves. With now over 1,1 Million Chivo wallet users, presumably nearly all will have redeemed their 30$ in bitcoin voucher, so the 700 BTCs kind of backs current redemptions (roughly, give or take).

While the media keep on making it look like El Salvador is accumulating bitcoin in its reserves much like Microstrategy or Tesla, they are likely covering what needs to be done to back the virtual BTCs people have in their Chivo wallets. The government passed a bill to reserve 150M $ to the Bitcoin Law rollout, so I figure this is part of it.

The adoption of Bitcoin as legal tender in El Salvador was not some momentary lightbulb
move, it was a considered one especially when the US$ was going to cripple the country
even more as it was devalued and the resulting inflation. The bonus is the saving on transfer
fees from FIAT remittances.

Adopting Bitcoin as legal tender for any country is a complicated process and as
DdmrDdmr suggests it isnt just a matter of buying and hodling. They have to figure
all the implications out on their own, nobody is helping them.

Buying at 44k down from 48k is "buying the dip" we all follow Planb, his floor value
for September is ~43k

[Fortify]

Apparently Bukele bought another "Dip" according to his last tweet, but there's something that I don't get in this move, let me explain.


How could someone consider a 44k resistance a dip?....right now we are in a period of retracement after a big upward move started in July; I wouldn't have been as comfortable as him investing so much money (remember that we are talking about one of the poorest countries in the world) with the probability of a massive bearish crackdown that could take us back to the 29k level.


I know that could be a "long time holder" move, but he has a reputation to defend, with a skeptical and poor population living in awful conditions, so, in my opinion, we have two possible cases:

1) He is a fool and apparently is comfortable with making such a risky move (a long bearish period can still be a possibility).

2) He probably knows (please don't take me as a conspiracy theorist, I'm just trying to imagine) that someone is gonna start another bull run soon, 'cause El Salvador attracted the attention of many big crypto investors, so a confrontation between Bukele and them about this topic is not so unlikely.


Let me know your opinion about this.

He is not really much of a politician, he is just chasing the media headlines that come with buying into Bitcoin - good or bad it doesn't really matter as long as his name gets into more worldwide news streams. In a wold where people like to read up on extremes rather than accept that life can be rather mundane maintenance, this sort of politician is just trying to stand out. Unfortunately these strategies tend to be very short term, focusing on the next election cycle rather than setting up a proper long term fiscal policy. He has gone from one currency that his country has no control over (the US dollar) to two currencies now that Bitcoin have been made official tender.

[ene1980]

~
1) He is a fool and apparently is comfortable with making such a risky move (a long bearish period can still be a possibility).

2) He probably knows (please don't take me as a conspiracy theorist, I'm just trying to imagine) that someone is gonna start another bull run soon, 'cause El Salvador attracted the attention of many big crypto investors, so a confrontation between Bukele and them about this topic is not so unlikely.

I doubt El Salvador will be having any bargaining voice in a global market, it feels good that they accepted Bitcoin as legal tender but if you look at the day when they legalized Bitcoin the market went through a major correction which shows that there are investors out there who wants to look at them as foolish, if not there is no way there will be a correction on that day.

[DeathAngel]

Ehh, the dip buying is a bit more of a PR move in my opinion. He "only" bought 150 BTC, which is more or less $6.8 million. Whereas while El Salvador is definitely not a powerhouse country levels of wealthy, I don't think that $6.8 million will make a significant dent on their balance sheet.

Yeah, this was my thinking too. Their stash is quite pitiful really, I think 700 but I suppose it’s better than nothing. I respect their adoption of bitcoin as a national currency much more.

[stompix]

Governments shouldn't use taxpayer's money to participate on a highly speculative and volatile market, that's like common sense.

Bukele reminds me of Trump, you have one of the poorest countries in the world to take care of, the 4th wave of Covid knocking at the door, and the economy hit worse than many by the global price increases as its energy-dependent, and what do you do, tweet about buying the dip, which turned out to actually be a case of catching the knife. Looking at how he is rushing things, how he makes every time claim like this, all the tweeter floods, to me seems like rather than trying to promote usage he is actually using the Bitcoin craze for his personal agenda.

This is my hypothesis, posted on another thread a while ago:

I haven’t seen it around clearly exposed, but I figure that those 700 BTCs are meant to back the existing BTCs within the Chivo system, and not so much intended to hold as part of the countries reserves. With now over 1,1 Million Chivo wallet users, presumably nearly all will have redeemed their 30$ in bitcoin voucher, so the 700 BTCs kind of backs current redemptions (roughly, give or take).

This would be a good thing if the buy is triggered by the activity in the wallets.
The bitcoins in Chivo are just some numbers in an app as long as you don't try to cash out, so them buying coins means that they don't have that much need of US dollars, people are keeping coins and not rushing to the ATMs to withdraw those 30$. If they need BTC it means an unexpectedly large amount of people are moving their coins in some other wallets and they need on-chain Bitcoins.

[Slow death]

1) He is a fool and apparently is comfortable with making such a risky move (a long bearish period can still be a possibility).

 

he is definitely a fool. I doubt that he has consulted any analyst before buying bitcoin, the worst part is that he still managed to show himself on the social network, and if the price dropped $42000 and dropped to $39000 or worse dropped to 37000$. how would he face his people? I think he should start consulting market analysts before buying bitcoin, even if he says he's making Hodl buy low Is the wiser, if he buys at $44000 and the price drops to $37000 he misses a big opportunity to have bought lower

[hatshepsut93]

Bukele reminds me of Trump, you have one of the poorest countries in the world to take care of, the 4th wave of Covid knocking at the door, and the economy hit worse than many by the global price increases as its energy-dependent, and what do you do, tweet about buying the dip, which turned out to actually be a case of catching the knife. Looking at how he is rushing things, how he makes every time claim like this, all the tweeter floods, to me seems like rather than trying to promote usage he is actually using the Bitcoin craze for his personal agenda.

He probably hopes that Bitcoin will be in a bull market for a lot more time and that people will view him positively because he introduced Bitcoin to them. This is a very risky move, because if the market will turn bearish, people will instead get angry. Imagine some poor family receiving a Bitcoin transfer from their relative working in the US, only to find 2 weeks later that the value dropped by 25%. They will blame Bitcoin and Bukele.

[Silberman]

Ehh, the dip buying is a bit more of a PR move in my opinion. He "only" bought 150 BTC, which is more or less $6.8 million. Whereas while El Salvador is definitely not a powerhouse country levels of wealthy, I don't think that $6.8 million will make a significant dent on their balance sheet.

This is the most likely explanation, the money that is being invested in bitcoin right now is not a huge deal for most countries, also as we know that money is going to be given away almost immediately so it's not a big deal if the price of bitcoin goes down a little bit after he buys it, so this is not a problem especially when we take into account that institutional investors have bought amounts of bitcoin way larger than that and they do not seem to want to sell their coins anytime soon.

[adzino]

Apparently Bukele bought another "Dip" according to his last tweet, but there's something that I don't get in this move, let me explain.


How could someone consider a 44k resistance a dip?....right now we are in a period of retracement after a big upward move started in July; I wouldn't have been as comfortable as him investing so much money (remember that we are talking about one of the poorest countries in the world) with the probability of a massive bearish crackdown that could take us back to the 29k level.


I know that could be a "long time holder" move, but he has a reputation to defend, with a skeptical and poor population living in awful conditions, so, in my opinion, we have two possible cases:

1) He is a fool and apparently is comfortable with making such a risky move (a long bearish period can still be a possibility).

2) He probably knows (please don't take me as a conspiracy theorist, I'm just trying to imagine) that someone is gonna start another bull run soon, 'cause El Salvador attracted the attention of many big crypto investors, so a confrontation between Bukele and them about this topic is not so unlikely.


Let me know your opinion about this.

1. I don't think he is a fool. He is surrounded by people that knows how the market works. They advise him. I doubt buying bitcoin again was his own doing. He is aware of the risk and willing to take it. If all goes downhill, its going to hit their country hard. But they invested in few hundred bitcoins. So I don't think it will have a long term affect on their country.

2. Everyone knows that if one bull run ends, another one is going to start.

[DaveF]

Ehh, the dip buying is a bit more of a PR move in my opinion. He "only" bought 150 BTC, which is more or less $6.8 million. Whereas while El Salvador is definitely not a powerhouse country levels of wealthy, I don't think that $6.8 million will make a significant dent on their balance sheet.

100% agree for a country, $6.8 is nothing, it's a PR move.
But, it's a good one. Keep bringing it up again and again, never let it leave the public view that they are supporting BTC and buying more to support the people.
If they keep it up, showing that they are serious and in it for the long term, then it will eventually just be everywhere in the country.

-Dave

[flip4flop]

Buying the dip on day one of a risk-off situation for equities worldwide due to China and other global issues is a terrible move. This is likely just the beginning of a short/mid-term sell-off that will hit crypto equally hard. We will be lucky if this isn't the start of another bear cycle that we could see a slow bleed with a few large flushes over the next few months or years.  Unless they have some serious cash reserves and are able to double their position as a whole they could already be in some serious trouble financially (not that they were not already)

[Darker45]

I don't know what you exactly mean by poorest but I don't consider El Salvador as one of the poorest. The country is not even on the top 50 poorest countries in the world.

Anyway, I am greatly surprised at how the people in the government is buying the dip as if they personally own the money. I am really amazed at how easily they could spend the people's money on something not even backed by the state's annual appropriation plan.

Is this how powerful their leaders are that they could literally just dip on the nation's purse and use millions and millions in USD over something likely not based upon careful deliberation and prioritization?

[so98nn]

Ehh, the dip buying is a bit more of a PR move in my opinion. He "only" bought 150 BTC, which is more or less $6.8 million. Whereas while El Salvador is definitely not a powerhouse country levels of wealthy, I don't think that $6.8 million will make a significant dent on their balance sheet.

True. We are talking about the country here not an individual and his dreams. So that money could come out of thin air and who knows he might actually turn it into something big cash inflow for the country. He would be a hero for doing so and then more investors and country peeps will get involved with the act of crypto space.

I am sure that this is well thought process of investment. That could be another public heroic act just to prove that El Salvador is consistently moving towards the crypto hub. Also there is another side for this picture, it is just to pump their balances so that they can have more owned keys and btc's for circulation within the country.

[famososMuertos]

...//...:

Hi,
Everything with El Salvador in relation to bitcoin, everything, is a path not traveled by anyone, although it may seem so in trivial actions, he is the President of an autonomous country, so until now there is no comparison.

So you cannot make unique analyzes so simplistic-traditional-standard, bitcoin in El Salvador is a matter of government, bitcoin is perhaps in a demagogic phase, bitcoin has its most political phase, in other words it is Beta adoption mode: The Savior, sorry, El Salvador.