President of El Salvador Nayib Bukele tweeted earlier today that his government took advantage of the recent drop in Bitcoin prices and added another 420 BTC to the national reserve.
“It was a long wait, but it was worth it,” he said tweeted, “We just bought the dip! “
We have a trust fund that is accounted for in USD, but the trust is funded in both USD and BTC.
When the BTC portion revalues against the accounting currency (USD), we are able to withdraw USD and leave the trust with the same total.
– Nayib Bukele (@nayibbukele) October 27, 2021
Many online viewers have speculated on the significance of El Salvador’s specific purchase of 420 Bitcoin, a popular slang term for marijuana consumption.
“Pretty! Blaze it!” Reddit user theylie86 commented, using another popular term in marijuana cultivation.
“I’m starting to believe he’s doing it on purpose,” speculated Reddit user EGarrett. “In fact, now that I verify that he was born in 1981, he probably is. It’s funny to see the results of millennials starting to inherit the world.
It is absurd that the United States is supplanted by El Salvador for who has the most bitcoins.
Our national policy should be to match every purchase of BTC made by a foreign government.
The next competition will not be on the number of nukes, but on the amount of bitcoin you have.
– Pump (@APompliano) October 27, 2021
Four hundred and twenty Bitcoin is worth approximately $ 24.6 million. The purchase brings the country’s total Bitcoin amount to 1,120 BTC, which is roughly US $ 87.4 million. The country has an estimated average purchase price of just over $ 53,300.
El Salvador first bought two batches of 200 BTC on September 6 of this year, snatching up another batch of 150 BTC a day later, when it also became the first country in the world to make Bitcoin legal tender. On September 19, El Salvador bought an additional 150 BTC, bringing the country’s total holdings to 700 BTC.
However, other observers were less positive about the recent purchase, expressing concerns about the safety of the country’s Bitcoin holdings.
Twitter user @dolomiteHEX responded to the President’s tweet asking, “Who owns their private keys?” The user also asked what would happen if the nation was hacked.
User @EnocWatcher shared these concerns, adding that Bitcoin purchased with taxpayer money should be stored in a publicly disclosed entity.
Read more: Latin America Expected To Benefit Most From Crypto, Uphold Executive Says
Central Bank of El Salvador chief Douglas Rodriguez told Bloomberg earlier this month that the Latin American country continues to invest in hopes that Bitcoin will soon lose its reputation as a speculative asset and would become a legitimate payment system.
“We don’t see any risk. Maybe risks on the upside, ”Rodriguez said. Bitcoin will “become a payment system, a financial inclusion system”.
Bitcoin’s price recently took a downturn to $ 58,570 after hitting an all-time high of $ 66,976 earlier this month. Despite the drop, the cryptocurrency is still up around 20% since September 7.