Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
El Salvador’s fiscal risk is extremely minimal despite BTC’s fall, says Finance Minister Alejandro Zelaya.
- Minister Zelaya says El Salvador “has not had losses” after Bitcoin fall.
- He claims he hasn’t lost because he hasn’t sold a single BTC.
- El Salvador has accumulated 2,301 bitcoins worth more than USD $100 million.
- That country hasn’t bought any BTC with the current drop.
The impressive drop in the price of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. ( BTC ), Today at this hour at USD $22.147, 7% less than yesterday, 24% less than a week ago and 67% less than its highest price (November 2021) has many people worried, disappointed, sad. Also many, who perhaps have only seen the fall of theirsatoshis for small amounts, they wonder what will happen to those who have purchased large amounts of BTC, como is the case of companies such as MicroStrategy y Tesla .
But, above all, there is concern among many about what will happen to a small economy like El Salvador’s, a country that bought a significant sum of BTC at much higher prices than today.
However, Finance Minister Alejandro Zelaya said that the most recent market an area or arena, online or offline, in which commercial dealings are conducted. slump will not affect the country’s fiscal situation.
At a press conference, Zelaya said that the market downturn has not increased the financial risks of adopting BTC.
“When they say that the fiscal risk in El Salvador by the Bitcoin is very high, the only thing that makes me laugh and I think that any serious economist should cause the same, because it really is a very superficial analysis and speak only from ignorance”.
The minister stressed that “the fiscal risk is extremely minimal”.
Likewise, said that El Salvador “no losses” by falls in the price of Bitcoin . He added:
“There’s a lot of hullabaloo lately with our Bitcoin strategy.”
“I’ve said it repeatedly: an alleged loss of $40 million has not occurred because we have not sold the coins “, Zelaya said. He said this in response to some media outlets, such as DW, que han dicho que ha tenido tan enorme pérdida (que se infiere solo de calcular lo que el país gastó en comprar BTC y su precio actual).
“There is a clear criticism of Bitcoin as such, not of El Salvador’s strategy. El Salvador is what they are least interested in, to them. (referring to the media) They don’t care what happens to our economy, they don’t care what happens to our people, what happens to inflation, said the minister.
How much does El Salvador have?
Vale recordar que entre el 6 de septiembre de 2021 y el 9 de mayo de 2022, El Salvador has accumulated 2,301 bitcoins for which it has paid more than $100 million USD. At the current price, 2,301 BTC would be worth USD $51,503,027, according to the calculator at CryptoMarkets, that is, almost half.
Investments in 10 purchases announced by President Nayib Bukele by means of tweets The cost of these activities, during different months, ranges from US$30,700 to US$58,000.
In addition, it is worth noting that the last announced purchase occurred on May 9, when you purchased 500 BTC at an approximate price of USD $ 30,744 per each bitcoin. Since that time he has not bought any more BTC, even in the current deep fall.
Likewise, the International Monetary Fund (IMF) has been one of the main critics of the strategy. Bitcoin of El Salvador. In January he urged the country to “ limiting the scope of the Bitcoin Law eliminating its status as legal tender”. . However, the response at the time from Minister Zelaya himself was: “ No multilateral organization is going to force you to do anything, absolutely nothing.”
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