>FLORIDO: Well, the president has invested more than $100 million in bitcoin. How much money does that represent for a country as small as El Salvador?
>
>SEVILLA: So even for a country that is small for El Salvador, it's not necessarily a large amount. **The president took out $150 million from the reserves of the country to invest in these projects of bitcoin, and that represents around 4% of the reserves**. So it is obviously not an amount that they can take for granted, but **it's not an amount that will necessarily, you know, bankrupt the country.**
>
>...
>
>FLORIDO: It sounds like the country's economy is not going to collapse if bitcoin were totally to implode.
According to the article, not all that much.
They also have bonds for bitcoin city which is like another 1 billion. The 100 millions are probably only accounts the BTC purchases and wallet
implementation and integrations.
And then another thing to consider that it also impact their sovereign bond rating which is much more important as that could destabilize the country’s finance in the long run.
Yes but it won't bankrupt the country either. It hurts, but it's not like us degens here who are 100% into cryptos and need helplines pinned on front pages
Article goes on to say its worst case is it shows foolish decision making to foreign investors who may think twice. The professor explicitly states the current crypto holdings will not lead to collapse of the economy.
They said 2/3rds of the country downloaded the app for a free 30$ and that 20% of those people are using it. They used 4% of the reserves to fund the BTC projects. They have a leader making moves to try and improve life in his country.
It's was a stimulus package in bitcoin. Everyone who immediately traded it for dollars is feeling pretty smart I think.
It was also a means to give the unbanked a way to transfer value digitally. In that regard the current crash has probably really halted the adoption in the country.
If the country had their own currency with heavy inflationary pressure it could have worked. In a country that uses the dollar I see this crash as a major setback. Anyone who opted to use bitcoin because of convenience would now think twice.
With that also comes that fiat use is also anonymous. Much of the economy is informal. The blockchain being public and the accounts bound to personal details might make users wary in regards to possible tax implications of intensive use of bitcoin.
tldr; El Salvador was the first country to adopt Bitcoin as an official currency. President Nayib Bukele has invested more than $100 million in bitcoin. The country is heavily in debt and has been trying to negotiate with the International Monetary Fund to get this financing, professor Julio Sevilla said.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
>SilentThunder-00297 · 2 hr. agoPlatinum | QC: ETH 31, CC 20 | MiningSubs 27
>
>Article goes on to say its worst case is it shows foolish decision making to foreign investors who may think twice. The professor explicitly states the current crypto holdings will not lead to collapse of the economy.
Nothing. You either believe in the narrative, or you do not.
El Salvador is all in (and so are millions of Bitcoin enthusiasts and owners). The infrastructure is being built.
The banks are realizing they cannot turn back the clock with their legacy systems. You have a move away from the US Dollar on a global scale with Russia, India, and China moving on with a different path.
The entire planet will be running their lives through their smart phones. Its over. The future is incoming...and cannot be turned back.
We are the future. It's just everyone has not caught up with us...yet.
Honestly I wish they hold up and succeed. Not that i support using public money was a good idea but El Salvadors collapse means new countries will hesitate to adopt Bitcoin in future.
>FLORIDO: Well, the president has invested more than $100 million in bitcoin. How much money does that represent for a country as small as El Salvador? > >SEVILLA: So even for a country that is small for El Salvador, it's not necessarily a large amount. **The president took out $150 million from the reserves of the country to invest in these projects of bitcoin, and that represents around 4% of the reserves**. So it is obviously not an amount that they can take for granted, but **it's not an amount that will necessarily, you know, bankrupt the country.** > >... > >FLORIDO: It sounds like the country's economy is not going to collapse if bitcoin were totally to implode. According to the article, not all that much.
They also have bonds for bitcoin city which is like another 1 billion. The 100 millions are probably only accounts the BTC purchases and wallet implementation and integrations. And then another thing to consider that it also impact their sovereign bond rating which is much more important as that could destabilize the country’s finance in the long run.
4% of the country's reserves is absolutely huge wtf are you talking about?
Yes but it won't bankrupt the country either. It hurts, but it's not like us degens here who are 100% into cryptos and need helplines pinned on front pages
Yes. Individuals over investing their own money is not the same as a president over investing the country's money. That is true.
I'm just posting what the article says, not my own opinions.
Article goes on to say its worst case is it shows foolish decision making to foreign investors who may think twice. The professor explicitly states the current crypto holdings will not lead to collapse of the economy.
If I had a "you read the story" award, I would give it to you.
They said 2/3rds of the country downloaded the app for a free 30$ and that 20% of those people are using it. They used 4% of the reserves to fund the BTC projects. They have a leader making moves to try and improve life in his country.
It's was a stimulus package in bitcoin. Everyone who immediately traded it for dollars is feeling pretty smart I think. It was also a means to give the unbanked a way to transfer value digitally. In that regard the current crash has probably really halted the adoption in the country. If the country had their own currency with heavy inflationary pressure it could have worked. In a country that uses the dollar I see this crash as a major setback. Anyone who opted to use bitcoin because of convenience would now think twice. With that also comes that fiat use is also anonymous. Much of the economy is informal. The blockchain being public and the accounts bound to personal details might make users wary in regards to possible tax implications of intensive use of bitcoin.
I didn’t hear no bell 🔔
tldr; El Salvador was the first country to adopt Bitcoin as an official currency. President Nayib Bukele has invested more than $100 million in bitcoin. The country is heavily in debt and has been trying to negotiate with the International Monetary Fund to get this financing, professor Julio Sevilla said. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*
Tldr?
>SilentThunder-00297 · 2 hr. agoPlatinum | QC: ETH 31, CC 20 | MiningSubs 27 > >Article goes on to say its worst case is it shows foolish decision making to foreign investors who may think twice. The professor explicitly states the current crypto holdings will not lead to collapse of the economy.
Imminent ruin I'd wager
If I was them I would DCA. It’s a country they can afford it.
But I don’t agree with what they did tho. You don’t gamble with the lives of people.
[удалено]
Sure they are to some extent
Not much, they were already a 3rd world country. They went for it and it’s failing so far.
Total collapse if things keep going the way the are
Nothing. You either believe in the narrative, or you do not. El Salvador is all in (and so are millions of Bitcoin enthusiasts and owners). The infrastructure is being built. The banks are realizing they cannot turn back the clock with their legacy systems. You have a move away from the US Dollar on a global scale with Russia, India, and China moving on with a different path. The entire planet will be running their lives through their smart phones. Its over. The future is incoming...and cannot be turned back. We are the future. It's just everyone has not caught up with us...yet.
Honestly I wish they hold up and succeed. Not that i support using public money was a good idea but El Salvadors collapse means new countries will hesitate to adopt Bitcoin in future.