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El Salvador Makes Historical Bitcoin Buy

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“El Salvador now holds 550 bitcoin.”

– President of El Salvador, Nayib Bukele

El Salvador has become the first country in the world to buy Bitcoin (BTC) at a state level with their recent purchase of 400 BTC.

The small country, alongside its president, Nayib Armando Bukele Ortez, recently made not only national history but global history after his announcement, declaring the federal government of El Salvador plans to adopt cryptocurrency (specifically BTC) on a state level.

If you missed it, read the article I published in early summer entitled El Salvador Becomes the First Country to Officially Declare Bitcoin as Legal Tender to get caught up with all of the juicy details before reading on!

Making History With Bitcoin Buy(s)

The presidential announcement swiftly came to fruition after the federal El Salvadorian government made a recent gargantuan purchase of 400 BTC, plus a second purchase of 150 during the recent market correction. With the announcement subsequently followed by two massive buys, this meant the country ended up tallying an impressive 550 BTC!

Simply put, it is these moves making one thing evident – President Nayib Bukele intends to keep his promise to the El Salvadorian citizens. It is clear President Bukele is very serious about taking widescale adoption into his own hands by accelerating the El Salvadorian people towards a future where digital cash rules.

El Salvador Buys the Dip

“Buying the dip. One-hundred and fifty new coins added.” 

– President of El Salvador, Nayib Bukele

Since BTC has now become official legal tender in the country, it has been backed by the government, so to speak, as the federal government of El Salvador is buying up the dips, according to President Bukele.

To put it simply, the latest moves by the El Salvadorian government mark a new stage of cryptocurrency adoption, with onlookers very keen to see whether they will ultimately sink or manage to swim in the volatile waters of the ever-burgeoning digital global economy.

 First-Movers Advantage

Countries that control the distribution and thus the printing of their money may also have to consider whether they should add bitcoin to their gold reserves – this is crucial. More accurately, if the appreciation in BTC prices adds inter-country competitive elements, the race to adopt BTC and other cryptocurrencies becomes apparent.

This move could likely pressure other governments worldwide to start hedging their bets accordingly – especially if they do not already print their own money and instead decide to peg it or outright adopt the USD or the euro. On the other hand, countries that DO print their own money may also have to consider whether they should add bitcoin to their gold reserves – this is especially true if the appreciation in bitcoin prices adds inter-country competitive elements.

However, it may well be in their interest to do so covertly at this stage so that they do not risk setting off a race between governments to upgrade their money reserves. This factor puts first-movers, such as El Salvador, at a clear advantage, especially when compared to rival nations. Thus it is not known at this stage whether government entities are diversifying with cryptocurrencies such as BTC.

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