What happens to $BTC when El Salvador sells their Bitcoin?

[BALIK]

El Salvador will be one of the richest country in the world with the investment of Bitcoin they will make the citizens proud.

Their annual GDP is only $30 billion, they own 6kBTC and their bitcoin investment is worth over $700 million and their economy is ranked 105th in the world. Meanwhile, superpowers like the United States and China have GDPs of $27 trillion and $18 trillion, respectively.
How do you think they will become the richest country in the world and how much bitcoin will they need to hold and what will the price of bitcoin be to become the richest country in the world? Even if they owned 21 million bitcoins and the price of bitcoin reached $1 million, that still wouldn't make them the richest country in the world.

[fikrett]

El Salvador will be one of the richest country in the world with the investment of Bitcoin they will make the citizens proud.

Their annual GDP is only $30 billion, they own 6kBTC and their bitcoin investment is worth over $700 million and their economy is ranked 105th in the world. Meanwhile, superpowers like the United States and China have GDPs of $27 trillion and $18 trillion, respectively.
How do you think they will become the richest country in the world and how much bitcoin will they need to hold and what will the price of bitcoin be to become the richest country in the world? Even if they owned 21 million bitcoins and the price of bitcoin reached $1 million, that still wouldn't make them the richest country in the world.

Yep.
Totally agree - they can be the smartest and the bravest for adopting BTC and trying things out with it, but no toppling the global powers type of thing.
It's not going in that direction any time soon.|

[Swordsoffreedom]

There is a big difference between business and investing. Having a business and working can give you a monthly passive income and you can rely on it to continue to maintain your business, thereby generating more profits. But when you invest it doesn't give you monthly income and if you just hold it forever without selling then you won't get any benefit from it. Especially when it comes to volatile assets like bitcoin.

El Salvador is also an investor like us and we should not be surprised if they decide to sell bitcoin for profit because that is the purpose of investment.

Remember that this country has considered Bitcoin a legal tender or alternative currency to US dollar, so they didn't buy Buying Bitcoin based on the investment side alone, but also to use it for day-to-day transaction in their country, so thinking about selling or liquidating all their Bitcoin portfolio at once according to Op, seem not very likely,  but they can sell some portion of their holdings.

The government of El Salvador only buys bitcoin for investment purposes, that's why we only see Nayib Bukele bragging about profits every time bitcoin hits a new ATH. Furthermore, if people want to use bitcoin as currency, they will buy and use it themselves, the government has no obligation to buy bitcoin and distribute it to people to use as currency. So the government selling bitcoins would have nothing to do with the use of bitcoin as currency in their country.

Another thing is, even though they have legalized bitcoin as a currency, it is not the only currency in the country, they still use USD. Furthermore, they don't provide and we also have many data showing that their people use bitcoin as currency instead of USD. With the volatility of transaction fees and bitcoin prices, not many of us want to use it as a currency and I think people there will think the same way as us.

[shield132]

Has anybody thought of this?

El Salvador is a small, very poor country (average monthly income = $365). And they are a democracy. If you are an average citizen of El Salvador, you are probably thinking about the nice things you could get if your government sold all of that BTC at a huge profit (and yes, math: this isn't enough to make everybody there rich or something, but again, this country is a democracy, so...).

I know El Salvador doesn't have a large percentage of the total Bitcoin supply, and them dumping it would only be a small bump on the market for a day or two, but I would reckon the psychological effects would be pretty huge.

Of course you could argue that they would want to keep their BTC as an investment, given how much money they have already made on it, but why not invest in some other digital currency that has potential gains of 10x more? In other words, what if El Salvador is gripped by... mass-FOMO  .

Something to think about...

I think that the first question will be why El Salvador sold their Bitcoins? There will be lots of articles on media websites and these articles will probably affect Bitcoin's price but it will not last for a long time. I think that the reason why El Salvador sold their coins will be more important than the fact that they sold coins. If they sell coins to cashout profits, then it won't affect Bitcoin's price because their savings are the savings of some random early adopters or rich people.

El Salvador will be one of the richest country in the world with the investment of Bitcoin they will make the citizens proud. And if they sell their Bitcoin, they will become rich and bitcoin price will increase very high so id you planning to buy bitcoin and thinking that the price is too high now then I advise you to buy more bitcoin now because the price is going to rise to the one of the highest price of $1 million and above and if you have a reasonable amount of bitcoin before it hits that amount then you will be smiling.

Selling off their will increase the quantity in the market and also increase the price.

The United States or other rich countries can buy the amount that El Salvador holds in one day. The USA and Germany sold 50K Bitcoins that they seized while El Salvador pays thousands of dollars to buy a single Bitcoin every day. MicroStrategy owns more than 400K Bitcoins. I think that El Salvador's idea of buying 1 Bitcoin every day played a good role for the marketing of the country. Look, we open threads about El Salvador, and thousands of people view these threads, hundreds of them post and famous crypto news websites like Cointelegraph, write articles about that, then Forbes, CNN and other companies write articles too and finally the result is that millions of people know that there is a country called El Salvador that is Bitcoin friendly. I believe that this was the aim of El Salvador's 1 Bitcoin per day investment but for such a small country, the profit is really amazing and I believe that in a few years, it will be very significant for them.

[fikrett]

Has anybody thought of this?

El Salvador is a small, very poor country (average monthly income = $365). And they are a democracy. If you are an average citizen of El Salvador, you are probably thinking about the nice things you could get if your government sold all of that BTC at a huge profit (and yes, math: this isn't enough to make everybody there rich or something, but again, this country is a democracy, so...).

I know El Salvador doesn't have a large percentage of the total Bitcoin supply, and them dumping it would only be a small bump on the market for a day or two, but I would reckon the psychological effects would be pretty huge.

Of course you could argue that they would want to keep their BTC as an investment, given how much money they have already made on it, but why not invest in some other digital currency that has potential gains of 10x more? In other words, what if El Salvador is gripped by... mass-FOMO  .

Something to think about...

I think that the first question will be why El Salvador sold their Bitcoins? There will be lots of articles on media websites and these articles will probably affect Bitcoin's price but it will not last for a long time. I think that the reason why El Salvador sold their coins will be more important than the fact that they sold coins. If they sell coins to cashout profits, then it won't affect Bitcoin's price because their savings are the savings of some random early adopters or rich people.

The amount of coins that would be sold is minuscule, thus, the news can only affect the minds of the people who read them. The market would be okay.
The sentiment would be affected for a bit, but only for a day or two, in my opinion.

[Finestream]

El Salvador is probably a bitcoin believer and is not there to flip for some altcoin.
Even if they decide to take profits at some point of time, it won't create a negative impact considering their economical state.
Although it might create a temporary dump in bitcoin price but it will recover sooner or later.
Whats more concerning are these corporate companies which hold large amount of bitcoins.
We can't imagine if all of them start selling off their coins.

It would be very funny for El Salvador to sell bitcoin to buy altcoins and I don't think it will ever happen because they have made bitcoin a strong foundation as a legal tender country. Bitcoin is a big force in the country and they even make huge profits in bitcoin, with the amount of bitcoin they currently hold it will definitely have an impact on the market if they plan to sell it all. But we also have to see how El Salvador approaches it and maybe their target is not a one-time sale because they are maintaining value.

For market conditions it will definitely have an impact and it is possible that bitcoin will experience an increase or decrease, but it is definitely temporary because it can definitely go according to the conditions that occur. So there is no need to worry because Bitcoin always gets a moment of recovery even though there is a severe correction in the market caused by several events.

Same reason here. If there are chances that El Salvador will take another investment, it would not be in the crypto industry, but probably gold or other traditional assets. But with the current position of bitcoin, I don’t think they’re ready to sell-off and let go of bitcoin. There’s more for bitcoin in the future, and for sure El Salvador will be greatly looking forward for it. Selling is not the best option for now, but it’s clearly buying and hodling.

[Iranus]

The bottom line is none of them are decentralised, at best one or two is questionably
decentralised. The only kind of appealing thing is that their price is appealing to those
who think they will be early investors in an asset* which is going to follow Bitcoins
trajectory. For me its a big risk and anyone serious about Bitcoin will have the same view
I would think.

No none of them are decentralized, they are all centralized but do you think they care about that? Do you think ETF, Saylor or Trump invested in bitcoin because they were interested in the decentralized nature of bitcoin? In my opinion, they don't care about that but only about the profit they can make from it.

Not only them, I bet most of us are also investing in bitcoin to make profit, not many people choose bitcoin because it is decentralized. If bitcoin becomes centralized but still profitable, I believe people will continue to invest in bitcoin, even bitcoin maximalists like you.

[BlackBoss_]

No none of them are decentralized, they are all centralized but do you think they care about that? Do you think ETF, Saylor or Trump invested in bitcoin because they were interested in the decentralized nature of bitcoin? In my opinion, they don't care about that but only about the profit they can make from it.

Not only them, I bet most of us are also investing in bitcoin to make profit, not many people choose bitcoin because it is decentralized. If bitcoin becomes centralized but still profitable, I believe people will continue to invest in bitcoin, even bitcoin maximalists like you.

Saylor and Micro Strategy invested money in Bitcoin in order to build up their company to be more attractive with investors. Their successful DCA investment in Bitcoin has helped Micro Strategy stock increasing a lot in price.

This benefits their company and $MSTR stock increases from about $14 or $15 to $364 today.
https://www.google.com/finance/quote/MSTR:NASDAQ?sa=X&sqi=2&ved=2ahUKEwjxgdytk7iKAxVf8DQHHTcmLckQ3ecFegQIQhAf&window=5Y

They don't want decentralization because they want investors spend money to buy their stock $MSTR and invest in their centralized company, Micro Strategy.

[bettercrypto]

El Salvador will be one of the richest country in the world with the investment of Bitcoin they will make the citizens proud.

Their annual GDP is only $30 billion, they own 6kBTC and their bitcoin investment is worth over $700 million and their economy is ranked 105th in the world. Meanwhile, superpowers like the United States and China have GDPs of $27 trillion and $18 trillion, respectively.
How do you think they will become the richest country in the world and how much bitcoin will they need to hold and what will the price of bitcoin be to become the richest country in the world? Even if they owned 21 million bitcoins and the price of bitcoin reached $1 million, that still wouldn't make them the richest country in the world.

It is difficult to say that in the near future El Salvador will become one of the richest countries. Although I do not underestimate or under-estimate them, well honestly speaking I am impressed by what they are actually doing, because there is a real effort they have made as officials of their country regarding their acceptance of bitcoin as a reserve investment.

I can only say this because there are many other rich countries that are also open to Bitcoin holdings like Russia and others, where if their eagerness suddenly increase even more to accumulate, for sure in the future they will become more rich.

[finaleshot2016]

El Salvador will be one of the richest country in the world with the investment of Bitcoin they will make the citizens proud.

Their annual GDP is only $30 billion, they own 6kBTC and their bitcoin investment is worth over $700 million and their economy is ranked 105th in the world. Meanwhile, superpowers like the United States and China have GDPs of $27 trillion and $18 trillion, respectively.
How do you think they will become the richest country in the world and how much bitcoin will they need to hold and what will the price of bitcoin be to become the richest country in the world? Even if they owned 21 million bitcoins and the price of bitcoin reached $1 million, that still wouldn't make them the richest country in the world.

It is difficult to say that in the near future El Salvador will become one of the richest countries. Although I do not underestimate or under-estimate them, well honestly speaking I am impressed by what they are actually doing, because there is a real effort they have made as officials of their country regarding their acceptance of bitcoin as a reserve investment.

I can only say this because there are many other rich countries that are also open to Bitcoin holdings like Russia and others, where if their eagerness suddenly increase even more to accumulate, for sure in the future they will become more rich.

If majority of the countries globally, try to join the current trend, El Salvador will gain but not really huge gains as BTC become the global market standards, it'll benefit for a profit but of course, other countries can benefit too when played smart. So right now, the only benefit for them is buying bitcoin at a good dip that'll give them good money and besides they're just holding a small portion of BTC compared to other countries like USA and China. The biggest benefit here is that if the country spread a nation-wide education for cryptocurrency and majority of all the people there know and educated about Bitcoin, it can attract more global investment as one of the countries who adopted the use of BTC.

[tbct_mt2]

If majority of the countries globally, try to join the current trend, El Salvador will gain but not really huge gains as BTC become the global market standards, it'll benefit for a profit but of course, other countries can benefit too when played smart. So right now, the only benefit for them is buying bitcoin at a good dip that'll give them good money and besides they're just holding a small portion of BTC compared to other countries like USA and China. The biggest benefit here is that if the country spread a nation-wide education for cryptocurrency and majority of all the people there know and educated about Bitcoin, it can attract more global investment as one of the countries who adopted the use of BTC.

I see it is coming, not if, and I believe it already started and will expand to more countries in near future. El Salvador, Central African Republic with Bitcoin Legal Tender, Bhutan invested in Bitcoin and Bitcoin mining at national scale.

https://coinmarketcap.com/legal-tender-countries/

The USA is a big nation that is going to purchase Bitcoin for USA. Treasury, that will be a big trigger for other countries to follow this hot trend. El Salvador as one of first countries invested in Bitcoin, will get very good profit in future. They have good ROI now already, 117%.

https://nayibtracker.com/

[moneystery]

El Salvador will be one of the richest country in the world with the investment of Bitcoin they will make the citizens proud.

Their annual GDP is only $30 billion, they own 6kBTC and their bitcoin investment is worth over $700 million and their economy is ranked 105th in the world. Meanwhile, superpowers like the United States and China have GDPs of $27 trillion and $18 trillion, respectively.
How do you think they will become the richest country in the world and how much bitcoin will they need to hold and what will the price of bitcoin be to become the richest country in the world? Even if they owned 21 million bitcoins and the price of bitcoin reached $1 million, that still wouldn't make them the richest country in the world.

that is very logical. to become one of the richest countries in the world what el savador has to do is more than just investing in bitcoin. they need to develop their natural and human resources, bring investment into the country, develop global class companies, and many other things they need to do. so even though the investment decision in bitcoin that they made was very right, but it is still not enough to make them one of the richest countries in the world.

[Ever-young]

Same reason here. If there are chances that El Salvador will take another investment, it would not be in the crypto industry, but probably gold or other traditional assets. But with the current position of bitcoin, I don’t think they’re ready to sell-off and let go of bitcoin. There’s more for bitcoin in the future, and for sure El Salvador will be greatly looking forward for it. Selling is not the best option for now, but it’s clearly buying and hodling.

That's correct; El Salvador will be among the last countries to consider selling their bitcoin. They are already on a profit margin, and there is more to profit from next year when the market will hit higher than it is currently.
 
The only time, aside from them locating another thing to invest in that they will consider selling, is if another government enters power and they hate that idea of a Bitcoin reserve, then they can give an order of selling off all that they hold, as we all know there are already haters of that policy who are against the seating government.

[legiteum]

That's correct; El Salvador will be among the last countries to consider selling their bitcoin. They are already on a profit margin, and there is more to profit from next year when the market will hit higher than it is currently.

Your assumption is:

1. That Bitcoin will keep going up in price, forever and ever.

and

2. That the people of El Salvador all believe that #1 is true.

Obviously if you believe #1, then neither you nor anybody else should ever ever ever ever sell even in a single Satoshi forever and ever.

However, even if you believe #2 (which is an even bigger leap), then you still have to wonder what El Salvador's people will do if they need more money. Again, this is a poor country we're talking about.

Of course many of us believe that Bitcoin can go down in price just like any other asset in the history of the human race, and thus the decision to sell is as arbitrary as the flow of Bitcoin itself.

For instance, Bitcoin's current price is based on strong political support in the US--but that could change overnight. If Trump decided he wanted to promote a "made in the USA" coin instead, then Bitcoin would drop in half more--and if they really wanted to make "Trump coin" a big thing, they could legally disadvantage Bitcoin the US and send the price down 90% or more. (Congrats to the 2024 election donors that just tied Bitcoin's price to US politics for now on, btw  ).