Nayeeb has proven himself to be a real friend of bitcoin. The guy tied his country’s future to bitcoin which takes lots of courage. He indeed believes in the tech and he is not just words. He is putting his (and his countrymen’s) money where his mouth is. A true bitcoin defender and a holder. History will write songs about this man.
Okay! Good one I must confess. He's vision for Bitcoin is arguably beyond comparison. Really placed at the top front as he sees so much light from it
So here comes my question, do you consider this act as a good decision ? It's more like putting all eggs in one basket. Quite obvious he must have done he's research but they have faced a huge loss evers since they bought bigger shares.
I am not a Bitcoin critics but do you consider this wise ?
Bukele was far from putting all of his eggs in one basket.. You need to get your facts a wee bit moar straightened out.
There is nothing we can expect from EL Salvador because they are the first country to accept bitcoin as legal tender and completely supporting bitcoin from here and then.
but what I was thinking is that why buying at 19k when they are capable to buy in at 17k?
but I am thankful to what they are doing as this will add progress and support to stay strong even in this dumping season.
You need to snap back into reality peter0425.
It is neither an easy task to time buying at the bottom, and it is likely not even a healthy mindset for anyone who recognizes and appreciates an asset (such as bitcoin) to have strong fundamental value.
With El Salvador, they seem to be in a relatively early BTC accumulation phase, and they also seem to be attempting to apply, lump sum investing, buying on dips and DCA.. and accordingly, there is no pure strategy in which anyone, whether an individual, country or institution is going to be able to adequately time the market, even though surely individuals are going to be more flexible in their abilities to act than countries and institutions, and certain kinds of countries and institutions are going to be more flexible in terms of their structure than other countries and institutions. However, even if a country or institution may be in a kind of flexible status in regards to its abilities to buy/sell bitcoin, that still does not necessarily mean that they should be attempting to fuck around with maximizing their timing in regards to something like BTC accumulation.
Yesterday, I had commented on the same topic in another El Salvador thread, and also pointed out DdmrDdmr's linking to a chart that seems to give an overview (and specifics) to El Salvador's known BTC purchases.
For ease of reference, here's that chart that DdmrDdmr had posted:Doesn't the US dollar still co exist there?
It's still there but it will soon be replaced by bitcoin, the fact that El Salvador relies on the USD and does not have its own currency has made their economy hard for years, but it will end soon. With bitcoin acceptance as legal tender and what El-Salvador needs now is time for bitcoin to become a popular means of payment and bitcoin to help their economy thrive.
I hate to criticize you Minor Miner for being too bullish about bitcoin, but frequently there are needs to be more reserved in terms of making absolute statements, and sure maybe in the long term, a country like El Salvador may well be able to transition completely to bitcoin, but for now it seems way more prudent and practical to assess their current status (incorporating bitcoin into their society) in terms of creating more options for themselves as a country and also more options for their citizens - including incorporating potential hope in terms of the possibility that El Salvador will be able to gain more and more sovereignty... and surely one of the ongoing problems with any government that claims to be democratic remains that Bukele may or may not be able to stay in office or to ensure a successor administration that is like-minded in regards to its bitcoin policies/practices and views, and even in the future, information may change, and surely I am not suggesting that they would be tempted into shitcoins, but we cannot even rest-assured that such a thing might not happen to a place like El Salvador - even though so far it seems to have stuck with a more sound policy/practice/view that puts bitcoin first (and perhaps even exclusive in a kind of bitcoin maximalist way).
Nayeeb has proven himself to be a real friend of bitcoin. The guy tied his country’s future to bitcoin which takes lots of courage. He indeed believes in the tech and he is not just words. He is putting his (and his countrymen’s) money where his mouth is. A true bitcoin defender and a holder. History will write songs about this man.
As the president of a country and with bitcoin, he knows well that bitcoin is a risky investment because of its volatility but he still puts all his faith in bitcoin. He is a true friend with bitcoin.
He ignores all warnings and chooses bitcoin as legal tender, currently investments have not yielded the desired results but he continues to believe in bitcoin and continues to buy when the price is falling quite a bit deep. This man deserves our admiration and respect, just wait for the bulls to return, he will be honored and get the rewards he deserves.
You are going a wee bit overboard in your praising and or worshiping Bukele, Minecache.
In other words, the mere fact that something like bitcoin is highly volatile and considered to be risky is likely going to justify considering taking a reasonable and prudent position, but it does not really justify failing/refusing to get into the asset and/or failing/refusing to get any kind of exposure to the asset (bitcoin in this case), which seems to be the ongoing mistake of no coiners and low coiners.
I got into bitcoin in 2013 - and surely on an individual level at that time, I was not very confident regarding how large of a position/stake that I should take in bitcoin at that time, yet I still established a bitcoin accumulation budget for myself for the then upcoming 6 months, and after revising my investment into bitcoin while continuing with it, after about a year of being in bitcoin, I had established for myself that 10% of my total quasi-liquid investment portfolio into bitcoin would be prudent/pracitcal for me.
So soon after that late 2014 time-frame, I started to recommend that individuals new to bitcoin should consider establishing a 1% to 10% position in bitcoin relative to their total quasi-liquid investment portfolio, and so part of the punchline of my suggestion continued to be that people get the fuck off of zero, but at the same time, tailor their amount to their own situation and assessments, so if someone were to be more bearish, s/he would gravitate towards investing into bitcoin at the lower end of the range and if the person were to be more bullish, then s/he would gravitate towards investing into bitcoin at the higher end of the range..
Lately (especially after March 2020), I started to gravitate recommending an initial investment target range of 1% to 25% into bitcoin, and surely some of the considerations of governments and institutions will be somewhat different from individuals, but similar to individuals in terms of the kinds of principles that can be applied in terms of their figuring out what level of exposure that anyone or any government or institution considers to be prudent and/or practical to get themselves off of zero while at the same time attempting to be reasonable/practical/prudent in terms of assessing their own situation.. to get exposure and without gambling too much in regards to their cashflow situation and also their other various investments..
Actually assessments in regards to investing into bitcoin would include considerations of cashflow, other investments, view of bitcoin as compared with other investments, timeline, risk tolerance, time, skills and abilities to strategize, plan, research and learn along the way including tweaking strategies from time to time to consider trading, reallocating, use of leverage and/or financial instruments. These listed items to consider apply to individuals as well as governments and/or institutions.
