For me, the most potent policy of El Salvador was to reduce crime in the country. The current Haiti gang violence is a typical example of what was happening in El Salvador before the government of Nayid Bukele took over. Violent gangs were in control of the country before he took over.
Without peace, no investor will consider putting money in the country. Citizenship by investment policy would never be attractive if the country was not safe. The country has experienced an increase in the rate of foreign tourists thanks to the crackdown on violent gangs. We are hoping that Bitcoin will reach the $100k mark but it seems that El Salvador will not be selling its Bitcoin holding anytime soon. The country will seek other means of fulfilling its financial obligations to the IMF.
Bukele's position is very clear, after he made the Bitcoin wallet public, a few days later he announced that he would continue to buy one Bitcoin every day. In my opinion, this is the right direction, I mean the goal is to increase the number of bitcoins, but I may not agree that this should be done now, when bitcoin has increased so significantly in price.
Of course, if you consider that the price will reach 100k, and I’m almost sure of this, then buying now also makes sense. At one time, I stopped buying when the price reached 30k, now I think that perhaps I stopped early, but this was my strategy and I will stick to the original plan until the end of the bull run.
For Bukele, this is all perceived differently, because he buys bitcoins not with his own money, but with taxpayers’ money, which is much easier to do and, of course, it is very important that in the end he does not think that these are his bitcoins, but understands that they belong throughout the country, and to every citizen of El Salvador. In any case, Bukele is doing the right thing, he is accumulating bitcoins and one day this may help El Salvador gain higher status.
I am still bothered by the 1 bitcoin per day idea.. even though there is some symbolism to it, but it is not as practical as either measuring in terms of some dollar amount or maybe measuring within a percentage of the countries revenues.
Like I mentioned in an earlier post, El Salvador seems to have ONLY accumulated 5% of its annual revenues in bitcoin, and this has happened over around 2.5 years. and maybe they would be better off to have had accumulated a bit more aggressively. So it seems to be accumulating just over 1% of its annual revenues into bitcoin, and the reason that it has 5% rather than 2.5% is due to bitcoin's price appreciation over that time... and probably a higher allocation of 5% would be good.. and maybe they can total up their annual revenues from the prior year.. - let's say $7 billion and then multiply that by 5% (or whatever percentage that they choose).. in the case of 5%, that would be $350 million, and then if that is divided into 365, that would be $959k per day.. which is way the hell more than 1 bitcoin per day. .. right now that would be right around 14.75 BTC per day - and of course the quantity per day would vary depending on the BTC price, but under the formula that I propose, the dollar amount would still be $959k per day... I consider 5% to be a fairly modest (and perhaps even whimpy amount), yet of course, since tax payer money would be invested and diverted into bitcoin rather than being made available for current government spending, maybe he would need to go with even whimpier amounts of 1% rather than 5%, which would still result in closer to 3 BTC per day rather than 1 BTC per day ($959k/5 = $191k = currently 2.95 BTC)..,. so right now, his 1 BTC per day is only spending around 0.33% of the government revenues.. and when BTC prices were in the $20ks, then his 1 BTC per day was ONLY spending in the ballpark of 0.11% of government daily revenues.
After Halving i am pretty sure BTC value will go back to 38-40K around or may be down.
How would you know that?
You seem to be wishing and also ignoring what is happening in the bitcoin space.
Sure it is possible that there could be a BTC price correction that goes sub $40k - yet hopefully no one is either waiting to buy BTC because they are waiting for those kinds of prices or selling any BTC and waiting to buy back at those prices.
The fact of the matter is that anyone who might not have any BTC or enough BTC, would be better off to be buying right now than to be expecting lower prices.
Of course, anyone who already has BTC prepared for UP, but anyone who does not have BTC or has too few of BTC is not prepared for UP... so the person who is prepared for UP is in a better position to consider the possibility of down (and to prepare for that) than the person who is not sufficiently/adequately prepared for UP.
There likely were quite a few folks left behind in the BTC price run up from $25k/$27k up to our current price range (mid-$60ks), and sure many of those folks who failed/refused to buy enough BTC may have had been waiting for the BTC price to go down further and may even currently be waiting for the BTC price to drop so that they can get in, when they may well be better off to just suck it up and get into bitcoin now rather than living in a fantasy that may or may not end up happening.
I'm surprised and shocked that a country that is under development will be the first to do this.. I was expecting the U.S.A, CANADA or other developed countries to start the trend.
It's Welcome development, probably maybe some percentage of the people who are yet to own a bank account will key into this new reform in the financial sector.. it will also boost trust between the people and the government..
It will encourage more international trade flow with El Salvador and if it is well utilized will make other developing countries key into it..
Less developed countries are more motivated than developed countries to buck the current fiat debt-ladened system, and adopting (and promoting) bitcoin is a way of bucking such system.