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El Salvador buys 500 bitcoins taking advantage of the fall
Bitcoin has had a fairly significant drop and has dropped to $33,000 per unit. Let us remember that until a few months ago, this cryptocurrency had a value of more than 68,000 dollars. This has caused many people to lose significant amounts of money.
However, where some see a tragedy, others see an opportunity and this is what Nayib Bukele, president of El Salvador, has taken advantage of. The president has announced that the country has bought 500 bitcoins for a total of 15.3 million dollars as part of its investment policy.
El Salvador has more than 2,000 bitcoins
With this latest purchase made by the president, the country has reached the incredible amount of 2,301 bitcoins. These are part of the country's reserves, in which it has become a legal currency.
It is important to mention that these cryptocurrency purchases advanced by the government lack transparency. And this is one of the things that people have harshly criticized.
Although the president has announced this purchase, the truth is that there are no further details. So, for the moment, the official data and figures of the purchase are a total mystery for Salvadorans.
Economists are worried
It has been 8 months since the Bitcoin Law came into force, which makes the circulation of this cryptocurrency legal in the country. Since then, the country has made several purchases and has advanced several projects related to this cryptocurrency.
In fact, many have denounced the lack of accountability on the part of the executive for at least 200 million dollars that have been used for the adoption of this cryptocurrency in the country.
However, due to the great volatility that not only Bitcoin has, but any other cryptocurrency, many have criticized this decision. Although the move can go well and considerably increase the country's reserves, the opposite can also happen.
If bitcoin goes down and stays low, the country would lose a part of its reserves. In fact, as of today, it is down around 50% if we take its peak price from a few months ago.
Bitcoin City, volcanic energy and cryptocurrency bonds
One of the biggest projects that El Salvador has that are related to bitcoin is the so-called "Bitcoin City", in which all transactions in the place will be carried out in this cryptocurrency.
In order to finance the development of this project, the government will issue 1,000 million dollars in bonds. These bitcoin bonuses have caught the attention of many investors, however this is on hold until further notice.
Another of the projects being carried out by the government is to create mining centers in which volcanic energy is used. In this way, it seeks to have clean and renewable energy in a process that consumes large amounts, such as cryptocurrency mining.
