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

[retreat]

Nothing will happen in the Bitcoin market. They only hold 5,951 Bitcoins, which is much lower than what some countries/institutions hold. In fact, if they sell all their Bitcoins, it will be their loss, because the attraction of El Savador and how it became known to the world was when they legalized Bitcoin and made it their reserve - and when they sell it all, it means that many people will be disappointed with their decision and start to see El Savador as a country that is not really serious about Bitcoin.

[AVE5]

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...

So much there're higher institutions that have invested on bitcoin more than the El Salvador government so if by means El Salvador options out of investing on bitcoin of course bitcoin will still be bitcoin rather it'd only cause a bear fluctuation on the market which doesn't seem a strange move in the market.
Besides so you even think about how much values is bitcoins that are sold in every approach of the bullish seasons and yet the potential gravity of bitcoin at its uprises keep on going?
Let me apply you with this term or "soldier goes and soldier comes" "barracks remains the same". This simply means when entities like the El Salvador is out of the market, other enthusiasts are coming in and the potential values of bitcoin will keep on thrilling.
To talk about El Salvador diversifying their countries economy values and another coins and not just bitcoin is something you don't understand the economical view of the economists.
You don't just bump into every opportunities cause You've to consider the potential risks. So literally no other coins that's more reliable as bitcoin. This you must know.

[bitterguy28]

Nothing will happen in the Bitcoin market. They only hold 5,951 Bitcoins, which is much lower than what some countries/institutions hold. In fact, if they sell all their Bitcoins, it will be their loss, because the attraction of El Savador and how it became known to the world was when they legalized Bitcoin and made it their reserve - and when they sell it all, it means that many people will be disappointed with their decision and start to see El Savador as a country that is not really serious about Bitcoin.

they are probably thinking that it will somehow trigger a movement in the market but the truth is el salvador isn’t as influential as usa for example it will not help in making the price rise or fall like usa does

usa is connected to a lot of other countries both an ally and an enemy to many which is why their stance on bitcoin is so widely respected because whatever happens in their country will affect others’ as well

[Zlantann]

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...

This is Bitcoin's era that's why no government is considering other digital currency. Most of the nation/states that have proposed to buy crypto are considering just Bitcoin. Bitcoin has paid its dues, it's now time to enjoy the shine. There are no other reliable crypto that can attract government and institutional investors like Bitcoin.

El Salvador is a rather poor country but the average monthly income alone is not the indicator of it. Not to mention that you should compare that with the cost of living which is about 600 bucks if I am not mistaken.

Some people who live in high income nations easily call people who live in developing nations poor based on their monthly or yearly income. But they fail to consider the cost of living in such country. Most people in my country will live good life if they earn just 40% of what a US worker earns. So if I earn less than you, I am not poor because my salary is enough to cover all my needs and more.

[legiteum]

There are no other reliable crypto that can attract government and institutional investors like Bitcoin.

There are thousands of digital currencies that are absolutely reliable today. This isn't 2015 anymore.

And unlike Bitcoin, I suspect that major companies are busy sending their salesforce to these countries to get them to choose them over Bitcoin. You'd be surprised what some "wining and dining" will do (or just plain old bribes).

[Marykeller]

When the US and other countries in the future are thinking of making Bitcoin their strategic reserve, El Salvador will on the other hand think of selling the 6000 Bitcoin they bought at the average price of $42,700 in 2021 and 2022. You know that not gonna happen because El Salvador will have financial advisors who will advise them on what they should do with their accumulated Bitcoin. To wait longer before selling because the future of Bitcoin is very bright to think of selling at a price below $500k.

However, with the accumulated Bitcoin by El Salvador, we are going to wait much longer before we hear the news of their plans to sell their 6000 Bitcoin. It is not going to be next year, I think.

[legiteum]

However, with the accumulated Bitcoin by El Salvador, we are going to wait much longer before we hear the news of their plans to sell their 6000 Bitcoin. It is not going to be next year, I think.

How do you know that? What if the people of El Salvador want to buy something nice for their country with their profits? What if the president there gets scared that Bitcoin could drop and he would be... killed probably?

Y'all are basing everything on the random whims of the mob here--that's what connecting your market to democratic politics means.

[Zlantann]

There are no other reliable crypto that can attract government and institutional investors like Bitcoin.

There are thousands of digital currencies that are absolutely reliable today. This isn't 2015 anymore.

And unlike Bitcoin, I suspect that major companies are busy sending their salesforce to these countries to get them to choose them over Bitcoin. You'd be surprised what some "wining and dining" will do (or just plain old bribes).

Of course we have thousands of them. The crypto space is also filled with thousands of pump and dump coins but the question will be are so they have the same or better features than Bitcoin. Are they limited in supply, decentralized and secured like Bitcoin? Why haven't we heard of any country that is interested in buying any other digital currency? The countries have done their research and discovered that Bitcoin is second to none.

However, with the accumulated Bitcoin by El Salvador, we are going to wait much longer before we hear the news of their plans to sell their 6000 Bitcoin. It is not going to be next year, I think.

How do you know that? What if the people of El Salvador want to buy something nice for their country with their profits? What if the president there gets scared that Bitcoin could drop and he would be... killed probably?

Y'all are basing everything on the random whims of the mob here--that's what connecting your market to democratic politics means.

El Salvador Won't Sell Its Bitcoin — President Bukele Says 'at the end 1 BTC = 1 BTC'

We have to believe President Bukele more than anyone else. He has said the country has no plan to sell. We just hope that the next President will be pro-Bitcoin to continue with his vision.

[legiteum]

Are they limited in supply, decentralized and secured like Bitcoin?

Yes.

Why haven't we heard of any country that is interested in buying any other digital currency? The countries have done their research and discovered that Bitcoin is second to none.

Like asking why companies only had Netscape Navigator in 1996 and not any of those other new browsers.

Technology markets have a tendency to change, you know .

We have to believe President Bukele more than anyone else. He has said the country has no plan to sell. We just hope that the next President will be pro-Bitcoin to continue with his vision.

LOL. Famous last words: "we have the believe this politician's words more than anyone else" 

[Cryptoprincess101]

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.

El Salvador wouldn't be that stupid to sell off their bitcoins knowing too well how much profits they have been able to generate since they adopted and made bitcoin a legal tender since 2021. Besides, before they adopted and made bitcoin a legal tender, it means they have a long-term foresight and target so am not sure they will stoop so low to diversify their bitcoins into some kind of shitcoins just because of greed to make more gains but if they consider such idea, they may regret their action. Even if they decide to dump bitcoin for other coins, it won't cause a major drop in the price.

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  .

So which other digital currency would you advise them to diversify into that have the potentials of turning their investments into 10x of their capital amount? If you know of any coin, then you can go directly to the government of El Salvador and tell them, if you love the country and the so called shitcoins you would like them to diversify to.
      You have already made a point that they would like to keep their investment in bitcoin since they have been able to actualize good profits from it. Do you now want them to leave an asset that they have seen bright future in it and invest in a low value coin? Who would even want to do such a thing, leaving a valuable investment like bitcoin and diversify into some shitcoins that can guarantee 10x of their investment? They wouldn't even give such idea a second thought if you ask me.

[philipma1957]

well El Salvador got in pretty cheap. If they want to play safe they can sell 2000 coins and buy gold with it.

Pretty much easy peasy move for them.

[aoluain]

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

Nothing - I've said this before and here goes again, Bitcoin is bigger than any one
entity, be it person or nation.

What could El Salvador or anyone possibly buy which would be better than Bitcoin?
because there is no second best, there is no better place to put your or a nations wealth.

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...

OMG are you serious?
While it might be a thing to gamble with $100 or $10000 by getting involved
with $hitcoins in the hope you can grow your pot, gambling with BTC6000 is a
non-event, no serious Bitcoiner is going to even contemplate that when Bitcoin
is growing organically anyway.

[DeathAngel]

El Salvador doesn’t even own one billion $ worth of Bitcoin. I don’t think they will sell any time soon but if they do, who cares. The market has absorbed billions & billions of $ worth of sales from the German Government & Mt Gox redistributions just this year & here we are, sitting at new highs. Bitcoin is one of the most liquid karkets in history, there will always be both buyers & sellers.

[Wakate]

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...

It seems you don't even understand much about the crypto space. The way we are seeing things, in few years coming there will not be enough Bitcoin for people to purchase because many people are already holding so that can make money from the market volatility. If El Salvador sells there Bitcoin holding, it will flood the market and that is if they have huge holdings but it is not going to have any significant effect on the market because there are people that would buy it immediately making it scarce again. The scarcity of Bitcoin is going to make the price to shoot up increasing the value of every holdings.

[justdimin]

Absolutely nothing will happen, they hold only 6000 Bitcoins. Germany sold 50 000 a few months ago and today we still got the price that's higher than 100K dollars. If I remember correctly, when the Germany sold them, there was a slight dump for a day or two and then price continued bull run.

Yeah, I am pretty sure that nothing will happen in the money sense but the news of it will crash the price without a doubt. We are just loving El Salvador right now and Nayib Bukele, he is a great bitcoiner and he is promoting it like crazy, and if he sells without telling us then I am sure nothing will happen, but of course we will hear about it, so he will tell the world when they do and that will cause panic and make a lot of people get out as well.

I do not think that we will crash too much, not like go back to last year, but it will have some 15-20% drop without a doubt. It's the emotional reaction that will cause people to sell, that's the most important part and because of that I believe that we are going to end up with a bad result if they end up selling.

[legiteum]

It seems you don't even understand much about the crypto space. The way we are seeing things, in few years coming there will not be enough Bitcoin for people to purchase because many people are already holding so that can make money from the market volatility. If El Salvador sells there Bitcoin holding, it will flood the market and that is if they have huge holdings but it is not going to have any significant effect on the market because there are people that would buy it immediately making it scarce again. The scarcity of Bitcoin is going to make the price to shoot up increasing the value of every holdings.

I guess if you believe:

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

2. Everybody in El Salvador believes that #1 is true.

3. No asset in the history of mankind, past present or future, can possibly be a better investment than Bitcoin.

4. Everybody in El Salvador believes that #4 is true.

Then... yeah... they will never ever sell their Bitcoin. Ever. LOL  

(OMFG if this isn't proof of a Bitcoin bubble I don't know what is  ).

[Mahanton]

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...

Lets just assume or expect that time will come that they will really be selling out their coins because we do know that they cant hold it up forever on which there would really be funds that needs up for the sake of development and they cant really be holding out their coins forever. This isnt really something shocking with this kind of aspect because government had already set out their plans on when they will be selling out and this isnt shocking news. If they will be selling out then just like been said that effects wont really be that much or major, even if it will be having that significant impact but still the market will really be having its recovery no matter what. This will really be that the same question on what would happen if whales or those big institutions or those billionaires will really be selling out their coins? When it comes into fundamental aspect then we do really know that it will really be giving out that impact towards price condition or situation in the market but it doesn't mean that they could manipulate it out. If it dips then there's always those who do love on buyuing on the dip on which recovery will really be just that next in line. Therefore, when we do speak or talks about selling out coins then they do have the full rights on selling their coins whether they are government or an ordinary joe or investor on the market. Buy high sell low is the most basic stuff on dealing up with the market so it will really be just that depending on their decisions on when they will really be doing it. People are really just that worrying too much about market crash and corrections on which we know that this is something inevitable. We cant really be having a market that it will really be having that single path to take.There's those ups and downs due to that very common reason on which to those who do buy and sell out with these numbers.

[joniboini]

-snip-

I'm not sure if you've already answered this, but which other assets would you suggest they buy? Let's assume they made enough profits from BTC and they want to diversify, are you suggesting they buy Legiteum or whatever asset you're promoting with your signature? The claim that it is the world's fastest currency is certainly cool, but that means nothing if no market can provide the liquidity to trade it. If that's the alternative I think they're more than happy to keep buying Bitcoin and sell once in a while, just like most institution who holds some Bitcoin nowadays. CMIIW.

[stadus]

You are right. The people of El Salvador, seeing the jump in bitcoin, may demand that the government sell bitcoins. And these people, given their poverty, may demand that they be given a share of this profit.

It doesn’t work that way. Even if they demand the government to sell and succeed, the government wouldn’t share the profit with them - literally. Government funds are meant for expenditures, typically investments or infrastructure projects that help improve the country’s economy.

And how much is their total Bitcoin holding? Less than $1 billion? Do you think that’s enough to significantly reduce their debts, especially when the profit is only half of that?

You need to look at the bigger picture. They’re not buying Bitcoin like traders. They’re using it to gain global attention, and look, we’re talking about them now.

[headingnorth]

Altcoins are the equivalent of gambling on penny stocks, or worse.

99% of the activity on ethereum and other altcoins involves the trading of memecoins, NFTs and maybe a few video games.
To me such things are little more than fronts for money laundering and running ponzi schemes.

No government in their right mind would ever invest in such worthless garbage. And neither should any individual.
But sadly there are many suckers in this world which is why altcoins still exist. Bitcoin is the only legit bluechip crypto there is.