El-salvador bitcoin investment is underwater

[Cryptornd]

 Bitcoin Purchase Timeline of El Salvador

After a buying spree, El Salvador is now holding 2301 BTC at a $45,900 avg. price

The country's Bitcoin investment is underwater.

Bitcoin had its peak at $69k, then continuously went down for months in the drumbeats of negativity

BTC price > $45k: 271 BTC bought
BTC price < $45k: 910 BTC bought
BTC BTCBTC
nayibbukele kept buying more when the price plunged

 El Salvador has come a long way on the journey to bring Bitcoin into people's daily purchase.
The country took numerous actions to realize the Bitcoin dream

[_act_]

What are you trying to bring up in your post?

El Salvador is a country that adopted bitcoin as a legal tender, there are criticism from many organizations, but El Salvador government has always reply good to the criticisms.

You can read one of the recent tweets of Nayib Bukele, El Salvador's president:
https://mobile.twitter.com/nayibbukele/status/1538356901297143809?ref_src=twsrc%5Etfw

You can also read what El Salvador minister of finance said about the price of bitcoin that has decreased recently:

I think El Salvador government prepared before they accepted bitcoin as a legal tender, see what Alejandro Zelaya, the minister of finance of El Salvador said about buying bitcoin.

https://cointelegraph.com/news/el-salvador-has-not-had-any-losses-due-to-bitcoin-price-dive-finance-minister-says

“There is a clear criticism of Bitcoin as such, not of El Salvador's strategy. El Salvador is what interests them the least, they [the media outlet] are not interested in what happens to our economy, they are not interested in what happens with our people, what happens with inflation.”

“I have said it repeatedly: A supposed loss of 40 million dollars has not occurred because we have not sold the coins.”

We all know that the second  quote is true, 1 BTC is equals to 1 BTC, if El Salvador has not sold bitcoin, this is not loss. Some holders will see the price falling, only what they think about is to wait for another years for all-time-high.

How do you see people that are criticizing El Salvador government as bitcoin price has decreased? As for me, I see them as someone that will only panic and sell, thinking they have lost money, but latter regret this in long term when the price of bitcoin reach all-time-high.

You can join us on this thread for latest further discussion about El Salvador bitcoin adoption as a legal tender: https://bitcointalk.org/index.php?topic=5342087.660

[Wiwo]

El Salvador's president looks bullish on Bitcoin and from his recent tweets he may not be purchasing more Bitcoin but rather will be looking away from the price chart, and this purchasing mentality is what make the El Salvador Bitcoin bound timeless.   This relates more when price is not the focus  but the number of Bitcoin in their Bitcoin stake. 1BTC=1BTC

[avikz]

When a country can go to an extent of adoption bitcoin as a legal tender and even encouraged their citizens to use it, they have definitely taken a calculated risk. Do you think they aren't aware of the past ups and downs?

I won't be surprised if the news comes up that El-Salvador is again buying bitcoin at the current level. This is a long term game and everyone understands it.

[jrrsparkles]

Bitcoin Purchase Timeline of El Salvador

After a buying spree, El Salvador is now holding 2301 BTC at a $45,900 avg. price

The country's Bitcoin investment is underwater.

Bitcoin had its peak at $69k, then continuously went down for months in the drumbeats of negativity

BTC price > $45k: 271 BTC bought
BTC price < $45k: 910 BTC bought
BTC BTCBTC
nayibbukele kept buying more when the price plunged

 El Salvador has come a long way on the journey to bring Bitcoin into people's daily purchase.
The country took numerous actions to realize the Bitcoin dream

Well its true that the holding asset lost its value around 50 to 60% but its not a complete loss until its on the hold just same like the investors and you know bitcoin is not the only asset which is facing such kind of down trend, almost the whole economic system of the world is going really bad and almost we may see the official statement of recession if this keeps on in this way for few weeks further.

If bitcoin can reach $3K to $69K in a year then I expect it to hit $100K atleast from the $20K region in the next cycle, keep your hopes alive.

[DannyHamilton]

Bitcoin Purchase Timeline of El Salvador

After a buying spree, El Salvador is now holding 2301 BTC at a $45,900 avg. price

The country's Bitcoin investment is underwater.

You are assuming that the U.S. dollar value of the bitcoins matters, that the bitcoins were purchased for the purpose of increasing the amount of U.S. dollars they could acquire in the future.  If that is the intended reason for holding Bitcoins, then yes the value of the bitcoin holdings at the current exchange rate is lower than the average excahange rate at which they were acquired.

However, if there are other reasons for holding the bitcoins (such as being a part of a global bitcoin economy), then they still have the same amount of bitcoins as they had before the exchange rate dropped. They haven't lost anything. Sure, they could have acquired MORE bitcoins if they had waited until now to acquire them, but there was no way to know that with any certainty back when they made the exchange. They also could have acquired less bitcoins if they had made all their echanges at the higher exchange rate.

[darkv0rt3x]

There is only one thing that can be said: 1 Bitcoin = 1 Bitcoin no matter what. Bukele said that the country lost no value because they didn't sell. That's all. Period. And this a fact. You only loose in a downtrend if you have weak hands and sell!

[LoyceMobile]

Governments have done much worse "investments" than this. Long term, fiat drops in value, and as long as El Salvador doesn't have their own currency, they lose almost 100% to inflation in the long run anyway. With Bitcoin, at least there's a chance it increases in value.

[carlfebz2]

There is only one thing that can be said: 1 Bitcoin = 1 Bitcoin no matter what. Bukele said that the country lost no value because they didn't sell. That's all. Period. And this a fact. You only loose in a downtrend if you have weak hands and sell!

We do really indeed have that basic principle on which as long you don't sell then you won't lose nothing and we've seen that bukele didnt make any moves yet he's fully aware on how volatile and risky the market is which it is really that make him prepared on times like this.He won't make btc as a legal tender without minding it's cons and risk.

People can't really just avoid to make out some criticism on something that they do see specially if there's someone who do bought on the peak or midway.

[PX-Z]

Sounds like you are mocking them on why they make bitcoin as one of their legal tender on this bear trend. While it looks like same like you are too bullish when they annouced it on the very first place.
At least El Salvador's president knows when someone lost in bitcoin investments — you only lost when you sold.

[aoluain]

When a country can go to an extent of adoption bitcoin as a legal tender and even encouraged their citizens to use it, they have definitely taken a calculated risk. Do you think they aren't aware of the past ups and downs?

I won't be surprised if the news comes up that El-Salvador is again buying bitcoin at the current level. This is a long term game and everyone understands it.

It would make sense for them to be purchasing more, at the current market price their average
buy price will be drastically reduced and obviously the option to sell does not make sense.

My Opinion - There is less than 2 years until the next halving, we all know whats going to
happen following and there is a big chance the market will start rising 6 months before the event,
so if they can weather the pressure of the bear market and are able to DCA in the meantime it
will be all good.

Its nice to see support for El Salvador

[edgycorner]

Sounds like you are mocking them on why they make bitcoin as one of their legal tender on this bear trend. While it looks like same like you are too bullish when they annouced it on the very first place.
At least El Salvador's president knows when someone lost in bitcoin investments — you only lost when you sold.

He deserves to be mocked. Imagine using taxpayers money to invest in a high-risk asset. It's monopoly money for him.

He's a narcissistic douchebag, pretending to care while he gives zero shit about what's going on in the streets of El-Salvador. It's all a ruse. His police report fake numbers, he pays off gangs, fires whoever criticizes his policies in the government, and replaces them with his lapdogs.
I am glad that bitcoin crashed, that fcker deserves this humiliation

[Rruchi man]

The country's Bitcoin investment is underwater.

I believe that was is meant by under the water in investment is when the value of something purchased becomes lesser than when you bought it. If this is the case, there is no need singling out El Salvador to criticize their investment in bitcoin with that idiomatic expression, when in fact the current situation is not a case peculiar to them but affecting everyone who has invested in bitcoins. Although no one could have accurately predicted bitcoins to get to the low price it is at currently, the Analyst(s) who the El Salvadorian president may have consulted with prior to the decision to adopt bitcoins must have indicated that there is a possibility of this current market situation.

On the positive sides of things, if El Salvador can survive these times, I don't see another situation threatening their bitcoin adoption that they can't survive.

[Jody.Drummer]

Bitcoin had its peak at $69k, then continuously went down for months in the drumbeats of negativity

BTC price > $45k: 271 BTC bought
BTC price < $45k: 910 BTC bought
BTC BTCBTC

This is only reduced by the value of the Dollar, not the value of Bitcoin that El Salvador holds. And as long as the number of Bitcoins does not decrease, there will be no worries about losing more. In fact, later we will see that El Salvador is the only country with the most ownership. Today did have a bear market but imagine when it's next ATH El Salvador will laugh with pride for turning a bearish moment into a big buy and the next day El Salvador stands taller with broad chests saying we surpassed other countries finances in just a short time. Believe it or not, Bitcoin can make it all happen.

[BTCLND]

They're using Bitcoin as a digital currency, not as a stock investment to HODL

[Bitcoin_Arena]

How is the "investment" underwater if they haven't yet sold any Bitcoins they bought?

In fact, at some point during the bear market, I predict El-Salvador may stack more Bitcoin at a discount. It takes time, but the good benefits will finally get to them.

[TimeTeller]

How is the "investment" underwater if they haven't yet sold any Bitcoins they bought?

In fact, at some point during the bear market, I predict El-Salvador may stack more Bitcoin at a discount. It takes time, but the good benefits will finally get to them.

This is what I am thinking also. They are not losing if they are not selling in this market.
Who knows, the last laugh will be El Salvador? So don't judge this early, because we have a lot of years coming by.
For one, this is not the end of crypto by any means. This is just another challenge in this market.
In no time, I believe, we will see this market in a very good position again. But we need to be patient on this market.
And sooner or later, yes, we may read it again in the news, that during this bear market, El Salvador got a hold of more bitcoins.

[n0ne]

There is only one thing that can be said: 1 Bitcoin = 1 Bitcoin no matter what. Bukele said that the country lost no value because they didn't sell. That's all. Period. And this a fact. You only loose in a downtrend if you have weak hands and sell!

For everyone who worried about the capital spend to the current value of the holdings he clarified, this is not even 0.5% of the country's budget. There is no doubt 1BTC =1BTC, and Bukele made a tweet what people need to do by this situation. Just forget the graphs and charts. Start enjoying life, and have patience. Once after bear market the bull trend will begin.

[edgycorner]

They're using Bitcoin as a digital currency, not as a stock investment to HODL

They are not. Only like 50,000 people use it, in a country of 6.5 million.
And even those 50,000 people have to use "USD" as the base value for its conversion while paying(and business owners can refuse to accept BTC, in such cases it will be converted to fiat via some chivo app for customer)

He's literally burning people's money. Idk how bitcoin community can support this scum just because he bought a few coins  
He's still a tyrant.

[Questat]

El Salvador's president looks bullish on Bitcoin and from his recent tweets he may not be purchasing more Bitcoin but rather will be looking away from the price chart, and this purchasing mentality is what make the El Salvador Bitcoin bound timeless.   This relates more when price is not the focus  but the number of Bitcoin in their Bitcoin stake. 1BTC=1BTC

He did it right. As the more he looks at the chart, listening to the criticism, the more it brings him down. It is a fair decision to leave for the market for a while, encouraging not to buy yet. For as long as El Salvador never sell any of their holdings, therefore to say that they never lose any and their people must stop thinking about it.

We could say that they are at the wrong time accumulating Bitcoin but that is how the market works, it is unpredictable. Can't see the perfect time when to buy.