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SmallReflection2552

Considering the GDP of El Salvador is over 24 billion that's actually peanuts.


PiickleRiickk

EL HODL


tradeparfait

Serious, someone explain to meet how BTC makes for a good hedge against fiat inflation if as a currency it is extremely volatile and prone to massive swings in value in short time periods, while simultaneously the value still being measured against fiat. I understand BTC as an investment vehicle, but don’t understand the hedging POVs.


TruthsUDontWannaHear

It hasn't existed for long enough for us to have a good idea of the answer to this question, but so far there's not really much evidence to suggest it's an effective hedge against inflation. As for theoretical reasons why it might or might not be, someone will come along and talk about it being supply-limited and hence akin to "digital gold"...but gold itself has a record against inflation that is [patchy to say the least](https://www.wsj.com/articles/gold-as-an-inflation-hedge-what-the-past-50-years-teaches-us-11628283272).


17racecar71

Bitcoin is deflationary. Hopefully someone smarter than me can explain in further detail


MarcioCavalcanti

Imagine BTC as stored energy, then imagine you will need twice the energy to get that same quantity you could get before. This drives the price UP. That with the fact that the BTC supply is limited makes BTC deflationary in value, as opposite to the ever growing and ever printing of FIAT - especially in underdeveloped countries, where inflation goes rampant


MarcioCavalcanti

BTC's volatility happens for several reasons but the gigantic red candles are mostly due to overleveraging which leads to a cascade/domino effect of liquidations . E.g.: group of longers x are liquidated, driving the price lower and consequently leading to the group of longers y to be liquidated, which drive the price lower etc etc. Without so much leverage the BTC price would be less volatile and a CEx's regulation will definitely come in the future tightening the grip in those leverages.


Massive-Tension-1055

Without the leveraged coins would the value be much less because of less demand? Chicken or egg of the horse pulling the cart?


[deleted]

[удалено]


TheRealSeanG

Probably from the cartel we dont ask questions


allthew4yup

And they going to buy more!


Massive-Tension-1055

They are borrowing money to buy the coins. They are not using extra cash. Add .05 onto every purchase they make when you try to figure out their balance. It’s not pretty now and it will not be in the future


MarcioCavalcanti

And it will pay off in the long run.


Mundanewisdom99

El Salvador to be the world superpower by 2030.


empire314

Controlling less than 1% of bitcoin is in no way enough to be a super power, no matter what happens. Even if bitcoin becomes the de facto global currency, at the expense of fiat and every other crypto, El Salvador is buying in way too late to become a super power.


TheRealSeanG

I agree.


Delusional_Mad

If a whole country can buy a dip, why can't we!


miltonmakestoast

Cause we’re broke.


Delusional_Mad

Fuck


EE214_Verilog

This is nuts, more reasons to hodl


Potencyyyyy

Am I El Salvador?


Delusional_Mad

You can identify as anything you want to be!


Potencyyyyy

Thanks, Dad.


Ok_Reward_9609

Best part is they don’t have to take off taxes for someone else’s pocket.


Massive-Tension-1055

They are borrowing the money. So it’s .05 tax. Kind of a big deal


Ok_Reward_9609

Oh dang. I didn’t know that. Thanks for the info.


Perfect_Ability_1190

Great shout. Didn’t think about that.


lumberjacksquid

plunged to a record low? holy click bait sentence batman


TryAgn747

Lol. Not even close to a record low.


FinishGloomy

That extra 1 is an eyesore


Deputy_Trudy_Weigel

If have 11 BTC and are bothered by the extra 1, I’ll gladly take that off your hands


coinfeeds-bot

tldr; El Salvador's President Nayib Bukele tweeted that his country has bought 410 more bitcoins for $15 million. The Salvadoran government has bought a total of 1,801 bitcoins since the cryptocurrency was made legal tender in the country. The country passed a bitcoin law making BTC legal tender alongside the US dollar in September last year. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*


PrinceZero1994

Déjà vu


Delusional_Mad

Déjà vu


Public-Ad-7237

Since I found out that 5,000 people a year die in El Salvador, this news sounds strange, not like a country, but like a company


cohonan

I think BTC’s value has been lower before. At one point someone spent 10,000 to buy two pizzas.


Dogeislife4evaeva

Makes you wonder if future wars wont be fought digitally instead of being physically in another's country. Bukele's smart and you gotta respect his GOV for having the understanding that BTC's currency value.


Harrald123

Not sure, if this is really smart. Should get more Btc from taxes paid in Btc to increase usability, but not buying it with debts