, a year ago
El Salvador’s president Nayib Bukele was making another power move when he announced that his country will build and run the world’s first Bitcoin city. The project will be financed by so-called volcano bonds which also will be used to buy back Bitcoin from the market and share the profit after 5 years with the investors. But aside from building futuristic cities and making Bitcoin legal tender, El Salvador has a knack for buying dips.
Since 2020 many companies opted for an investment in Bitcoin. Among them MicroStrategy which is leading the way with an investment north of 100.000 BTC. But there are also a couple of countries holding Bitcoin. Many of them got their hands on BTC because they were seizing wallets during law enforcement investigations. But not El Salvador, instead, President Bukele is using dips in the market to finance additional infrastructure.
On November 27th Bukele announced via Twitter that the country bought 100 BTC when the price fell down to 54.377 US-Dollars. Adding another stack El Salvadors owns now over 1.220 BTC at the time of writing. The question is if other countries are going to follow the example. Many experts believe that this could be the case should the countries Bitcoin treasury become a success story. For now, the country is using Bitcoin as an advantage despite the fact that its economy is considered very small and less significant.
The IMF has warned El Salvador to use Bitcoin as legal tender and adding it to the national treasury. But inflation is increasing, not slowly but more rapidly as data shows. Many analysts along with the ECB and the FED believe that inflation will have a healthy effect on the global economy and that it is only transitory.
Bitcoiners on the other hand are very skeptical about this assessment and view the increasing inflation as a systemic crisis that will do more harm than good. They believe that Bitcoin will save everyday people and even countries because it’s a scarce good that holds many advantages over traditional assets like gold.
It remains to be seen who is right and who is wrong taking such strong opinions towards inflation. What cannot be denied is the fact that despite its high volatility Bitcoin is one of the most successful assets in the 21st century. If this success is going to continue inflation might not be the most important thing when it comes down to the question of countries should whether own Bitcoin or not.
Dec 02, 2022
A researcher and former climate activist has established a new methodology to determine the percentage of the Bitcoin mining energy that comes from renewable sources. By including so-called off-grid mining, he estimates Bitcoin's total energy generation at 52% from zero-emission sources.
Dec 01, 2022
In a blog post called Bitcoin's last stand, the ECB has revealed its negative stance towards Bitcoin. It views the current relative price stability as 'an artificially induced last gasp before the road to irrelevance'. The attack came at a day on which it also attacked the new uncensored Twitter.
Nov 28, 2022
The current bearmarket is turning out to be a nice opportunity for Bitcoin believers who aren't wealthy. For many, the goal of becoming a wholecoiner, is a worthy endeavour. According to data from Glassnode, they are buying at a record pace.
Nov 28, 2022
Bitcoin Core activated version 24 and brought some new features that caused a controversy beforehand. The software is the backbone of Bitcoin and is used by millions of user worldwide. What is the replace-by-fee-feature, and why is this feature causing a controversy eight years after its being introduced to Bitcoin?