El Salvador Buys the Dip, Purchases 500 Extra Bitcoins
Updated · May 10, 2022
Amid a heavy crypto market slump underpinned by Bitcoin’s performance, President Nayib Bukele announced 500 new coins on Monday.
Buying the Dip
El Salvador has bought the wild Bitcoin dip, according to its president Nayib Bukele. He announced via Twitter that his government purchased 500 Bitcoins at an average of $30,774. The total purchase price roughly adds up to $15.3 million.
El Salvador just bought the dip! 🇸🇻— Nayib Bukele (@nayibbukele) May 9, 2022
500 coins at an average USD price of ~$30,744 🥳#Bitcoin
Last year, the South American country became the first in the world to adopt Bitcoin as a legal tender. Since then, the president has made several announcements as his government accumulated the coins, taking advantage of dips. El Salvador currently has about 2,300 coins in its reserve.
Bukele’s move has received mixed reactions. Bitcoin’s price has fallen over 25% in the last month as the cryptocurrency market has seen billions wiped off. The coin has now reached its lowest price level since July 2021. It briefly traded below $30,000 on Monday night before retracing to just over $31,000.
Detractors of the decision believe that the downturn in financial markets will continue to have a negative impact on cryptocurrency and that prices will fall even further.
Bitcoin City Plans Not Shelved
The market slump has not affected El Salvador’s ambitious plans to build a “Bitcoin City” powered by the digital asset.
Bukele announced plans for the city last year. It will be located at the foot of the Conchagua volcano and roughly set in the shape of a coin. No income or property taxes will be charged in the Bitcoin City when it materializes.
Many have tanked the idea as a white elephant project.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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