Wednesday, October 4

Amid the fall, El Salvador buys another R$82 million in bitcoin

The President of El Salvador, Nayib Bukele announced this Friday (21) the purchase of 410 bitcoins, a purchase of US$15 million, around R$82 million at the current price. Now El Salvador has 1801 bitcoins in its reserves, equivalent to R$ 359 million.

“No, I was wrong, I didn’t lose [a queda]. El Salvador just bought 410 bitcoins for just 15 million dollars. Some people are selling it too cheap,” said Nayib Bukele.

The country that recently adopted bitcoin as legal tender, started buying bitcoin for its reserve in September 2021. Purchases are usually made in the “dump”, that is, when there is a correction in the market and the price of bitcoin drops.

In addition, the government has bitcoin mining plans, according to President Nayib Bukele, the Bitcoin City project includes mining bitcoins in order to increase its reserves.

Government and Bitcoin

On September 7, El Salvador announced bitcoin as legal tender, however, the day before the event, they made the first purchase of bitcoin. 400 bitcoins. Therefore, its reserves add up to a total of 1801 bitcoins, valued at US$ 68.4 million, about 359 million reais.

With the projection of the new city in El Salvador, called Bitcoin City, the government is expected to mine bitcoin with the surplus energy, as produced by geothermal energy sources.

Although El Salvador is not the only country with bitcoin reserves, it is the first country to adopt the digital asset as legal tender. On the other hand, at least 3 countries already have bitcoin reserves, but there are rumors that there are others who have bitcoin, but have not made the information public, such as China and Russia.

Among the countries that have their bitcoin reserves, Ukraine leads with 46.351 bitcoins, equivalent to approximately R$ 9.2 billion at the current price.

Finally, the trend is towards increasing adoption of digital assets by governments, but before that, education of the population will be essential.