Despite warnings from global agencies to switch to Bitcoin (BTC), the El Salvadorian government continues to seize market opportunities.
On Monday morning, when Bitcoin was worth less than $ 46,000, El Salvador’s President Neb Bukele announced on Twitter that the country had “bought the fall.” With 150 new coins, the Central American government now owns 700 BTC, which is nearly $ 32 million at the time of writing.
With the obvious reference to ditching the “non-financial advice” arising around the cryptocurrency ecosystem, Bukele shared his “presidential advice,” reminding, “They can’t beat you if you buy the fall.”
As Cointelegraph reports, El Salvador bought a new dip on the day BTC became legal tender in the country when Bitcoin suddenly plummeted to below $ 43,000.
El Salvador’s move towards adoption has awakened the cryptocurrency world, especially with potential tax cuts for bitcoin investors. However, the government’s decision to accept Bitcoin as legal tender is not entirely without problems.
In addition to protests and rallies against the government’s commitment to bitcoin, ratings agency Standard and Poor’s Global said the adoption had “immediate negative consequences” for the country’s credit rating. Standard & Poor’s also said the move would reduce El Salvador’s chances of receiving a $ 1 billion loan from the International Monetary Fund.
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El Salvador made history by becoming the first country to recognize Bitcoin as legal tender on September 7th. At the time, the government had 400 bitcoins. Taking advantage of two price drops in two weeks, buying 150 coins at a time, El Salvador increased its bitcoin holdings to 700 BTC.