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.
The fall in the prices 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. have made the 1,801 BTC El Salvador’s reserves are currently worth about US$65.6 million, which is below the US$88.4 million originally invested.
A recently published survey reveals that, while the drop seen in the price of Bitcoin negatively affected the investors of the main digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency, one of the most affected has been precisely the government of El Salvador, which has seen a significant reduction in the value of its BTC purchased since last year.
Falling Bitcoin prices and El Salvador reserves
According to information shared by the president of El Salvador, Nayib Bukele, to date, the country has a total of 1,801 Bitcoin acquired in recent months, for which a total of USD $88.4 million has been invested to date. By dividing the total BTC between the amount invested, this would result in an average of USD $49,100 per unit, but this figure is well above the USD $36,440 that the market an area or arena, online or offline, in which commercial dealings are conducted. reflects as the price at the time of publishing.
If we multiply the current price of Bitcoin by the amount the country has in reserve, this gives USD $65.6 million in total assets. This figure reflects losses of USD $22.8 million, equivalent to almost 25% of the overall amount. This figure is adjusted if the government of El Salvador to date maintains all of those 1,801 BTC, as it is not known if it has sold part of them to finance some other program or initiative, such as the funds granted to the users of the national purse. Chivo.
According to the reports published by Bukele himself through his messages on Twitter, the investment was made as follows:
- USD $35 million invested in September 2021, for which 700 BTC.
- A month later, a further 240 BTC paying about USD $59,000 per unit.
- At the end of November, about USD $54,000 per unit was paid to add another $100,000 to the total. BTC.
- A further 171 were purchased in December BTC.
- And lastly, in the most recent purchase, USD $15 million was invested to buy 410 BTC.
Rejection of Bitcoin e “crypto winter”
The situation represents a tough gamble at this point for Bukele and the government of El Salvador, as the adoption of Bitcoin faced rejection from both inside and outside the Central American country. Internally, the opposition parties have expressed their disagreement with this measure from the moment of its announcement, which even led to civil protests that resulted in the destruction of some points and ATMs. Chivo, while on the international scene, organizations such as the International Monetary Fund have spoken out to discredit that decision and warn other nations not to go down that path.
However, what’s even more troubling is that all of this comes at a time when the market seems to be heading lower with no clear support, a situation that many analysts are calling the beginning of a period of “crypto winter”.
Unlike other times when prices have fallen sharply, there is currently a lot of uncertainty regarding macroeconomic indicators, mainly associated with the U.S. economy and possible measures to be implemented by the U.S. government. Federal Reserve (FED ) to address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. the rising inflationary levels affecting the dollar, the main reserve currency currency is a medium of exchange that defines value. for many countries in the world.
On the other hand, political tempers are also running high in the light of possible military conflicts between Russia and Ukraine, which foreshadows a scenario in which several countries – including the US – could become involved.
Bright Future / Uncertain Present
In spite of all the above, analysts and enthusiasts remain firm in the thesis of Bitcoin as the new digital gold, so it is believed that in the coming years it could be revalued and become a global reserve currency thanks to its technological properties and its programmed scarcity.
However, it is currently very difficult to know when the bearish trend that is shaking so much of the Bitcoin as well as the crypto market in general. The readings at the moment are very bearish in the short a trading technique in which a trader borrows an asset in order to sell it, with the expectation that the price will continue to decline. In the event that the price does decline, the short seller will then buy the asset at this lower price in order to return it to the lender of the asset, making the difference in profit. term, projecting that prices could fall further and approach USD $30,000 per unit for the major cryptocurrency.
Meanwhile, others have their expectations on crypto whales, which apparently would be waiting for a very good time to make their move and buy after the fall seen in recent months. Recall that the digital currency reached highs near USD $70,000 per unit, and at the time of editing is almost 50% below those values.
As for El Salvador, this appears to be an endurance test for President Bukele and his government, which remains steadfast in its perception of El Salvador as a “free country”. Bitcoin despite the poor results seen throughout January. It remains to be seen what the president will do if prices continue to fall, and if the situation turns around before it becomes unsustainable for the Central American country’s finances.
- El Salvador’s President invests another USD $15 million and acquires another 410 bitcoins amid market slump
- El Salvador: Government to offer Bitcoin-backed loans and build NFT non-fungible tokens (NFTs) are cryptocurrencies that do not possess the property of fungibility. casino
- El Salvador to add more geothermal energy sources to power its Bitcoin City
Version by Angel Di Matteo / DiarioBitcoin
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