El Salvador: In September 2021, El Salvador became the first country to adopt Bitcoin as a legal tender. Since then, the Government has accumulated approximately 5,940 bitcoins, valued at around $582 million as of November 2024. They perform both open market purchases (they are buying one bitcoin per day since) and mining operations.
Comparing what El Salvador has managed to accumulate from a period of 3 years till today will turn out to be approximately 3% of what the US government are applicable to gather in a whole year then multiply in four years. This will turn out to be the biggest Bitcoin purchase to be recorded, but i tend to find question concerning how much of an impact it will do on the price of Bitcoin following how and on what process will the relatively 200,000 Bitcoin be bought without altering the four year cycle, for such a big buy to happen in a year period then for another 3 consecutive years, totalled to four years in total?
We cannot compare the financial strength of El Salvador to that of US. El Salvador is a country that does not have a stable economy and has low financial capability. Since they accepted Bitcoin as a legal tender nothing much has improved significantly in the value of their currency and purchasing power.
My fear is that the US should not make Bitcoin a legal tender if not the reserves plus the legal tender would make the US citizens the highest adopters of Bitcoin. I don't want any direct control of Bitcoin coming from one country. Instead,, there should be a maximum limit to the quantity of Bitcoin that can be reserved by any county in the interval of one cycle. Apart from the US there are other countries that has enough money invest in the Bitcoin reserve which i do not want it to be competitive thing.
With a pro Bitcoiner as president elect there's chances of making Bitcoin a legal tender in the states but then the USD is still valid and i feel his administration would explore the potential of Bitcoin to backup the USD. However i think it’s becoming a competition if im to judge with Trumps speech, cause he was like others are buying it but they (the U.S ) want to be the best and what i think is that once they start buying aggressively for reserve other top nations would follow suit no one would want to be left out and that alone would cause more hike in the price of Bitcoin, we might even see the price rise more further than expected. Well, even though they make Bitcoin a legal tender in the states, there's no doubt that it would have the highest number of people holding Bitcoin but then it doesn't mean they have controlled over Bitcoin, Satoshi was wise enough to make it decentralised so shall it continue to be.