He was believed to be ruined, hyper-indebted and on the verge of bankruptcy for having chosen bitcoin without the approval of global financial institutions. But El Salvador preferred to continue its merry way without flinching. His secret? Patience. With her, will the country be able to overcome everything?
El Salvador grants itself freedom with bitcoin
Like so many developing countries, El Salvador is struggling to emerge from poverty and underdevelopment. And this despite a high level of industrialization or even the adoption of the dollar as the national currency for about twenty years.
The statistics are far from praising the country. For example, there is this rate of 30% of inhabitants living below the advanced poverty line by TV5 World which does not bode well for the country. For its part, the world Bank gives it a “Ratio of the poor population according to the national poverty line” of 26.2. While China shows 0.0 and Austria 13.9.
One of the alternatives chosen by Nayib Bukele is the legalization of bitcoin, two years after his election as head of the country. Added to this are successive purchases of bitcoins which earned him tons of criticism from both sides of the world. 400 BTC purchased in September 2021 alone, 500 in mid-May, and an additional 80 bitcoins in early July.
In total, the country accumulates the equivalent of 2,381 BTC currently.
Bitcoin, ruin or economic growth for the country?
Earlier this year, Steve Hanke accused Nayib Bukele of ” play with bitcoin “. In the eyes of this professor applied to Johns Hopkins University, this choice would be fatal for the economy of the country.
And it’s not uncommon to see finance scholars criticize El Salvador’s pro-bitcoin president. There is for example Peter Schiff, a proven no-coiner, who suffered tweets of a diplomatic nature or in the form of a troll by Bukele himself after his reprimands.
The crisis that cryptocurrencies are currently going through is not helping matters either. El Salvador’s losses amounted to $18 million when BTC traded below $23,000 last June. Something to delight the detractors of bitcoin and the Salvadoran president.
Except that the latter does not lack support, especially from his entourage and bitcoiners. Just today, American presenter Stacy Herbert praised Nayib Bukele via Twitter. She picked up a tweet from Bitcoin Archive which stated that:
” El Salvador spent just $100M on #Bitcoin and gained not only BILLIONS in brand value but, more importantly, economic sovereignty from FU money in the public treasury. »
Moreover, the country’s finance minister, Alejandro Zelaya was clear on this:
” There has been a lot of hype lately about our bitcoin strategy. [Le Salvador] suffered no losses [car il n’a pas vendu des BTC]. »
Added to this is the wise advice of Nayib Bukele, issued in the context of bear run : “ Stop staring at charts and enjoy life. If you have invested in BTC, your investment is safe, its value will increase immeasurably after the bear market. The main thing is patience “. CQFD!
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