Re: El Salvador has become the first country to make #Bitcoin legal tender! 🇸🇻
Well, since it appears that after 2.5 years investing into bitcoin, el Salvador has gotten to nearly 5% of its annual revenues in bitcoin, just consider how many bitcoin the USA, Canada or any other developed country would have to buy in order for bitcoin to constitute 5% of its annual revenues. Any country could try to buy BTC, but surely it would put way more price pressures on BTC if larger countries were engaging in BTC purchases, and in the whole scheme of things, El Salvador is pretty tiny - even though it could buy way more bitcoin without really affecting bitcoin's liquidity or to cause great slippage in the BTC price.
As I mentioned earlier, El Salvador could be justified to buy close to $1 million worth of bitcoin per day, and that would still ONLY be around 5% of its revenues, and maybe some other countries might feel that they need to catch up to El Salvador in terms of percentage of their revenues, which would be much more difficult for larger countries to do without really greatly affecting BTC's price, which largely should show how early we still are when it comes to bitcoin's adoption and how much liquidity that bitcoin truly could absorb if some additional countries start to buy bitcoin and/or try to catch up to El Salvador in terms of percentage of their annual revenues.
I think that it would be best if El Salvador was about to buy 1 block each day instead of 1 bitcoin, i.e. buy the quantity of bitcoins that each block contain (i.e. 6.25 BTC per day till 21 April 2024 and then 3.125 BTC per day till the next halving and so on). As I mentioned earlier, El Salvador could be justified to buy close to $1 million worth of bitcoin per day, and that would still ONLY be around 5% of its revenues, and maybe some other countries might feel that they need to catch up to El Salvador in terms of percentage of their revenues, which would be much more difficult for larger countries to do without really greatly affecting BTC's price, which largely should show how early we still are when it comes to bitcoin's adoption and how much liquidity that bitcoin truly could absorb if some additional countries start to buy bitcoin and/or try to catch up to El Salvador in terms of percentage of their annual revenues.
Sure of course they could afford to do that, and it would still be less than 5% of their budget, since their daily budget is close to $1million per day if they were to use a 5% rate.
It is a bit problematic to measure what you are doing (especially when it comes to dollar cost averaging kinds of purchases) in terms of BTC rather than in terms of dollars, because pricing the asset in terms of dollars would naturally cause buying more BTC when the prices are lower and fewer BTC when the prices are higher.. but then we should all realize that the world values are still measured in terms of dollars, and not in terms of bitcoin - since bitcoin is very volatile in regards to the dollar, not only because their is a war going on right now, but also because bitcoin is still in its earliest stages of exponential s-curve adoption..
so there is going to be more value to figure out ways to be more rather than less aggressive in terms of BTC accumulation.. but to also limit such aggressiveness in terms of real world considerations and real world considerations are still priced in terms of dollars, not bitcoin. So yeah, your suggestion is more aggressive than what they are currently doing, but I think it is still too whimpy and it is also denominated wrongly (and in fantasy terms rather than more realistic terms).
I genuinely believe that such a plan would be far better in every possible way.
To be honest, I don't think it's a good idea to buy Bitcoin on a country level. It's okay for El Salvador and for small developing or probably developed countries but that's too dangerous for big countries like the USA, Germany, Japan and so on because there are too many things that has to be kept in mind, including what will happen if Satoshi arrives, who are the whales of this coin, what if there is a hard fork, etc.
To be honest, I don't think it's a good idea to buy Bitcoin on a country level. It's okay for El Salvador and for small developing or probably developed countries but that's too dangerous for big countries like the USA, Germany, Japan and so on because there are too many things that has to be kept in mind, including what will happen if Satoshi arrives, who are the whales of this coin, what if there is a hard fork, etc.
Oh gawd..
You sound looney and like you don't even understand what the fuck is bitcoin. Who cares about the whales and the big holders. There are still coins on the market and anyone can buy them.;. .and yeah people who got into bitcoin are going to be more and more advantaged by the extent to which others are coming into bitcoin later and buying later, which is one of the main justifications to get into bitcoin as soon as you can whether you are an individual, institution or a state...and if you don't get into bitcoin sooner rather than later, then you are going to either have to enter bitcoin later and pay more or you are going to have to have fun staying poor including suffering from being on the wrong side of the greatest wealth transfer known to mankind.. and the criteria for the wealth transfer is that you have bitcoin.. so those who have bitcoin are going to be the recipients of the wealth transfer, and those who don't have bitcoin will be the ones who are losing their value to the coiners.. so better jump onboard sooner rather than later rather than getting worked up about whether you are unjustly pumping the bags of the guys who got in earlier...that is a losing mentality to think about bitcoin in those kinds of jealously (whining) laden ways.