- El Salvador has faced massive losses, especially in the recent bear market. The bitcoin crash has seen over 65%, erasing a huge percentage of the token’s value.
- President Bukele still bullish on buying the dip— mentioned in a tweet.
- The nation has bought around 2300 Bitcoins totaling up to give a sum of 105.6 million USD.
The Crypto Nation
Whenever we hear about the ongoing bitcoin crisis and the bear market of cryptocurrencies, we think about crazy young teenagers in their pajamas, betting on some “dope” technology and losing massively in the market.
The reality is a bit different from this stereotype. No, the teenagers aren’t the only ones who are losing money in bitcoin, it seems that there are nations too that are suffering from the crisis,
One of those nations is El Salvador.
We all know that El Salvador is the country that officialized bitcoin as a legal tender for the nation in September of the last year.
Since then, they have faced massive losses, especially in the recent bear market. The bitcoin crash has seen over 65%, erasing a huge percentage of the token’s value.
The Aggressive Optimism
- According to the calculations of Bloomberg, El Salvador has lost almost around 56 million USD.
- According to sources, El Salvador has bought around 2300 Bitcoins totaling up to give a sum of 105.6 million USD.
- As we all know, on Wednesday, bitcoin saw one of the longest drop streaks by crashing down at 21,339 USD.
At this point, you might have expected the president of El Salvador to become careful on the matters of bitcoin and start selling some of them.
Well, it seems that it’s the opposite.
Bukele suggested Tuesday that there is a good chance that he’ll buy the dip.
It is important to note that:
- El Salvador has an 800 million dollar bond payment due in January.
- Bloomberg says that El Salvador’s debt is one of the worst debts in all of Latin America if we talk about 2022.
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While many people are complementing El Salvador and President Bukele for thinking about the future, a huge population is criticizing their unrealistic optimism for the future of bitcoin.
Many legendary investors and leaders claim that this extremely bullish idealogy of El Salvador led the nation to lose 56 million USD.
Source: https://www.thecoinrepublic.com/2022/06/28/el-salvador-betting-its-future-on-bitcoinwhat/