El Salvador Buys The Dip (Again), President Bukele Grabs Another 420 BTC

Last updated: Oct 28, 2021
3 Min Read
AI Generated Summary

Bitcoin bull and president of El Salvador Nayib Bukele has bought the recent dip in Bitcoin, according to his Twitter.

"It was a long wait, but worth it.

We just bought the dip!

420 new Bitcoin"

The country's latest purchase of 420 Bitcoin puts its total stack in the treasury at 1,120 BTC, worth about $66,000,000 at current prices. It is the first purchase since September when Bukele announced they had purchased 150 BTC. 

Bukele also revealed details behind how the country is taking profits through a trust fund.

"How do we make a profit if 1 BTC = 1 BTC?

We have a trust fund accounted in USD, but the trust is funded by both USD and BTC.

When the BTC part revalues in comparison to the accounting currency (USD), we are able to withdraw some USD and leave the trust with the same total."

El Salvador first adopted Bitcoin as legal tender on September 7th in the face of some backlash. The country saw several protests against the measure that voiced concerns over Bitcoin potentially encouraging money laundering, the drug cartels, and corruption. Protesters have also set some Bitcoin ATM machines on fire, complaining of technical difficulties especially during the first week of their rollout.

Unfazed by those skeptical of the BTC rollout, the country has continued to invest resources into the Bitcoin ecosystem. Last month, President Bukele announced that the state had built a Bitcoin mining rig that utilized geothermal energy from volcanoes. The president tweeted a screenshot showing the first batch of BTC generated from the volcanoes. 


The Chivo wallet also enticed Salvadorans into trading the world's top crypto. The application used to have a scalping feature that allowed users to freeze the price for one minutes to compare the quote to other exchanges before buying or selling. Salvadorans were trading Bitcoin so much that Chivo decided to pull this feature after concerns that there was excess speculation occurring.


The above tweet translates to:

"We had to temporarily disable the option to see the Bitcoin price frozen for one minute. Unfortunately, many of our users used it for scalping, which is legal, but without having the option of a frozen rate."

El Salvador is the only country in the world for now that publicly holds Bitcoin, much to the chagrin of BTC enthusiasts such as Anthony Pompliano.

"It is absurd that the United States is being outcompeted by El Salvador for who owns more bitcoin.

Our national policy should be to match every single BTC purchase that is made by a foreign government.

The next competition won’t be number of nukes, but how much bitcoin you own."

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