The Central Bank of El Salvador revealed that it bought 420 Bitcoin as an asset, despite recent SEC warning. The government has plans to use the cryptocurrency for international trade and liquidity purposes.,
The “what is one bitcoin worth” is a question that many people have been asking. The answer to the question is the cryptocurrency’s value at any given time. El Salvador has recently purchased 420 Bitcoin as an asset regains $60,000.
Many people viewed Bitcoin’s recent price drop as evidence of the digital asset’s instability, while El Salvador’s president saw it as a chance to enhance the country’s Bitcoin holdings.
El Salvador decides to take the risk and purchase the dip.
President Nayib Bukele disclosed in a tweet yesterday that the Central American nation has purchased 420 more bitcoins (BTC) valued roughly $25 million, bringing its total holdings to 1120.
Interestingly, some social media users have began to associate the latest acquisition with marijuana lingo, with one Reddit member saying, “Nice! “Go for it!”
If 1 #BTC Equals 1 #BTC, how do we earn a profit?
We have a USD-accounting trust fund, but it is financed with both USD and BTC.
We may withdraw some USD and leave the trust with the same total if the BTC component revalues in contrast to the accounting currency (USD).
October 27, 2021 — Nayib Bukele (@nayibbukele)
Shortly after admitting that the nation had purchased the Bitcoin drop, the President also disclosed that they were starting to benefit from their recent BTC purchase.
Earnings were earned, according to him, via the rebalancing of the country’s Bitcoin trust, which enables them to pay out their profits as the asset’s price rises.
It should be emphasized, however, that the country’s pocketbook remains unknown, making it almost difficult to verify the president’s allegations.
Some Twitter users have already voiced their opposition to the country’s BTC holdings’ secrecy. One Twitter user pondered who controlled the BTC wallet’s private keys, while another queried why the digital currency was not stored in a publicly acknowledged corporation.
Last month, El Salvador made history by becoming the first nation in the world to acquire digital gold and accept it as legal money alongside the US dollar.
Bukele had claimed at the time that recognizing BTC as legal cash would benefit the nation in the long term since it would make it easier for diasporans to send more money home. Traditional banking institutions, he claims, would charge far more to execute these transactions.
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