It has been revealed that the government of El Salvador has bought even more Bitcoins. The move comes just months after the government announced that it would be making the crypto-currency legal tender in the Central American nation.
The new purchase of 150 Bitcoins means that the country now owns 700 Bitcoins, roughly valued at $34 million.
The young President, Nayib Bukele, who pioneered the move to Bitcoin, tweeted:
"We just bought the dip. 150 new coins! El Salvador now holds 700 coins. They can never beat you if you buy the dips … Presidential advice."
We just bought the dip.
— Nayib Bukele 🇸🇻 (@nayibbukele) September 20, 2021
150 new coins!
El Salvador now holds 700 coins.#Bitcoin🇸🇻
Despite the President's claims, Bitcoin has actually dropped in price since El Salvador's purchase of the cryptocurrency began, meaning the country has lost money, at least in the short term.
El Salvador made the choice to move to Bitcoin firstly because there is the possibility that the asset could balloon in value over time, and secondly because it means that transfers to the country no longer have transaction fees. Millions of El Salvadorians live abroad, often in the United States, and send money back to friends and family in their homeland. However, these often have transaction fees that skim as much as 20% of the total value of the money transferred. Bitcoin removes this transaction cost, potentially saving the country billions each year.
While Bitcoin is not in widespread usage, El Salvador now has 205 Bitcoin ATMs where the currency can be bought and turned into cash. This is the third largest number of Bitcoin ATMs in the world, behind the U.S. and Canada.
A new Bitcoin wallet is also being developed which will allow El Salvadorians to carry out Bitcoin transactions using their smartphone.
Some have stated that they worry that the long-term move towards Bitcoin could, in fact, be dangerous for El Salvador, or any other country. They cite issues such as Bitcoin's rapidly fluctuating price, the inability to tax profits on Bitcoin, and the link between Bitcoin and organised crime. El Salvador already has one of the highest murder rates in the world and the impoverished nation is a key narco-trafficking centre.
[h/t: Bitcoin.com]
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