“It was a long night but it was worth it”: this was the tweet with which El Salvador’s president Nayib Bukele announced the purchase of an additional 420 Bitcoin.
A week ago, Bitcoin hit a new all-time high of $66,000, driven by the launch of ETFs based on BTC futures in the United States. In recent days, however, Bitcoin has lost value through ups and downs, until last night, when a wave of selling brought BTC below $60,000.
The government of El Salvador took the opportunity to buy another 420 Bitcoin and thus increase its fund containing both BTC and US dollars, the two currencies that are legal tender in the country.
How El Salvador’s BTC and USD fund works
On this occasion, President Bukele also explained how El Salvador is using Bitcoin. BTC purchases go into a fund that is fed in both USD and Bitcoin. Whenever Bitcoin makes a profit, the government can withdraw US dollars, so that the trust’s balance sheet is not affected.
All this is possible due to the fact that Bitcoin is volatile and therefore rises (and falls) in value, even overnight, just as happened yesterday.
After all, Bukele explains in his tweet:
“How do we make a profit if 1 BTC= 1 BTC?”
Nayib Bukele
The comments
President Bukele’s tweet was also commented on by other crypto-influencers.
For example, for the CEO of Microstrategy Michael Saylor:
“Every day is a good day to buy Bitcoin”.
For Adam Back, CEO of Blockstream, El Salvador is making history.
The number of downloads of the state wallet, Chivo, proves that to be the case: El Salvador is truly writing history, contributing to the mass spread of BTC across the country.
The crypto journey in Nayib Bukele’s country
The purchase of 420 BTC allowed El Salvador to increase its funds by $25 million. But El Salvador does not intend to limit itself to just buying.
The country is also starting a mining farm powered by the energy of a volcano. This will allow the country to produce BTC, using clean energy, thus solving one of Bitcoin’s most long-standing problems: the environmental impact due to its high consumption of resources.
While waiting for the mining farm to become operational, it is the government’s intention to facilitate BTC mining operations in general.
El Salvador basically aims to become the heart of Bitcoin’s evolution. The interesting thing is that its example on a “small scale ” (El Salvador has “only” 6 million inhabitants), could soon be followed by other much larger nations and this could definitely start the Bitcoin revolution.
(@nayibbukele) October 27, 2021
