People don't realize this but El Salvador will soon become the rishest country of the world. Think in a way that they are holding over 20,000 bitcoins and if each bitcoin reaches over 100k, thier county reserve will be doubled.
Read my reply, the 3rd message, it's actually 1200 coins and they would need to gain $150k in price each year just to cover the annual aid Salvador receives from the US for
regional and humanitarian assistance.
In order for Salvador to become the richest country in the world they would need to buy 1 million bitcoins and each of those to be worth 126 million because that's the total wealth, the richest country has right now, 126 trillion.
There we go, the perfect potential example of the former part of to fable the milkmaid and her pail. While BTC goes up, they extract USD from the trust, keeping the book value of the Trust near the legal allocated value. The problem is, that BTC could go down, and activate the second part of the fable …
I said before, once he started throwing projects after projects it turned from a nice step forward that would trigger adoption to a race on who will be the first to land in prison with these schemes. Now, if he would be using those gains from the trust fund to buy more coins, which would raise the value of the trust allowing him to buy more coins, I have a feeling this is going to turn into a fractional reserve scenario.
As much as I dislike this guy and his schemes, unfortunately now I have to actually hope this house of cards will not collapse, with so much attention he has drawn from the media if this goes bust every single one of us is going to get a free colonoscopy from the fallout.