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El Salvador Will Keep Buying 1 Bitcoin Daily Until BTC 'Becomes Unaffordable' With Fiat Currencies, Says President Bukele – Featured Bitcoin News

  • El Salvador will continue buying 1 Bitcoin daily until it becomes unaffordable with fiat currencies
  • President Bukele's statement highlights commitment to cryptocurrency adoption
  • Move demonstrates belief in Bitcoin's long-term value and potential as a global currency alternative.
dutchkimble ,

Say he achieves his goal (which doesnt make any sense but lets ignore that), what then? The day they need to encash it and they start selling the price will crash

fruitycoder ,

I don't think the plan is to sell it but to be able make accept payments of good and services in it.

protozoan_ninja ,

Who's going to be buying and using Bitcoin if it's not affordable?

Mango ,

🤣🤣🤣🤣

Asudox ,
@Asudox@lemmy.world avatar

cool, here's the plan:

  1. see el salvador announcement
  2. buy one bitcoin
  3. wait for el salvador to buy a few bitcoins
  4. bitcoin price skyrockets to a few million
  5. sell your one 50k worth bitcoin for 500k dollars
  6. profit1!1!1!1!
Fisch ,
@Fisch@discuss.tchncs.de avatar

That might be exactly what he's trying to achieve by announcing it like this. Kinda sounds like a pump and dump tbh.

neutron ,

Whatever your thoughts on cryptocurrency might be, this is borderline gambling addiction.

Agent641 ,

Just put the whole economy on black.

No, red!

NO, BLACK!

PhlubbaDubba ,

It's kinda hilarious that the soft dictatorship and prison state that makes even America look like a prison abolitionist paradise isn't what's going to sink this idiot, it'll be the fucking bitcoins

Harbinger01173430 ,

Is that bill cipher in the flag?

daniskarma ,

And what happens if the government needs that money and Bitcoin price is down?

I don't see how putting national reserves on such an inestable "asset" would be a good idea.

deafboy ,
@deafboy@lemmy.world avatar

As opposed to their national currency... oh, wait! :D

IphtashuFitz ,

Worse, what happens if cybercriminals are able to successfully steal a large number of the countries bitcoin, or if they somehow lose access to their bitcoin wallet(s)?

Babalugats ,

He said 'until it's unaffordable' I guess he's using reserves like the way the US does on weapons and military, some of which isn't even for them.

He's investing in what he believes is a profitable investment. I'm guessing that he has financial advice from people that have studied this to a level that can understand it better than most people, and consider it a sound investment. With the intention at the other end being to use for the country. Everything accounted for, nothing going into senators back pockets, could be used to boost their health service and hospitals and whatever else.
With countries less built up currently looking more favourable in the future, they're already in a good position.

h3mlocke ,
@h3mlocke@lemm.ee avatar

🤷‍♀️

wrekone ,

...El Salvador has decided to transfer a large chunk of its bitcoin holdings to a cold wallet and store it in a physical vault

What are we up to now, like Ocean's 15 or something?

TypicalHog ,

Publicity stunt amount.

smileyhead ,

Then why do they tell everyone about it?

Seems like a way to pump the price up just by press and not actually wanting to anything.

ShaggySnacks ,

All the hallmarks of a pump and dump scheme.

FarceOfWill ,

The only take that makes sense

Mubelotix ,
@Mubelotix@jlai.lu avatar

Politics got to be transparent you know

deafboy ,
@deafboy@lemmy.world avatar

Move the price? Talk is cheap... and so is 1 BTC per year.

This is just Bukele craving some attention. I hate the term attention whore, but can't find a better description.

reverendsteveii ,

Talk is cheap… and so is 1 BTC per year

luckily it said they're going to buy 1 per day. There are several days in an average year.

deafboy ,
@deafboy@lemmy.world avatar

The more I'm eager to take a piss out of someone, more I emberass myself.

absentbird ,

It's spelled embarrass, you wrote 'emberass'; would that be like someone who sits on hot coals?

dutchkimble ,

Uhh no, it's an em type of berass

drislands ,

Relatable. In our rush to say the clever thing we're thinking, we don't stop to double check that we read it correctly in the first place. I've been guilty of that too many times....

notfromhere ,

If this is legit and not corruption and bitcoin eventually takes off to ungodly levels, imagine the biggest bet in history paying off and their country turns around as an economic powerhouse. Risky and stupid but would make a good movie.

Buttons ,
@Buttons@programming.dev avatar

The only thing keeping them a powerhouse would be a number on a computer that can be stolen. Question is, would people try to steal from a nation rich enough to be a powerhouse and how sophisticated would those theft attempts be?

Mubelotix ,
@Mubelotix@jlai.lu avatar

That number is protected the same way gold is. Reminds me you americans stole us 1000 tons of gold during ww2

Siegfried ,

Who is us? Please elaborate, )

Mubelotix ,
@Mubelotix@jlai.lu avatar

France

Buttons ,
@Buttons@programming.dev avatar

That's my point. If a country really did build up enough Bitcoin it became a world power, those Bitcoin would probably be stolen. If it can happen to gold, it can happen to Bitcoin even easier.

Mubelotix ,
@Mubelotix@jlai.lu avatar

Why faster? The gold was in a ship because the gold had to be carried, which isn't the case with bitcoin. If there is no ship you can steal, you won't get anything

Buttons ,
@Buttons@programming.dev avatar

If I can steal your cryptographic key (a number), I can write to the Bitcoin ledger "I Mubelotix give Buttons840 all my Bitcoin", and then it's done, the transaction is complete, it's written on the immutable public ledger with your own private key. If I can get your private key then I can take all your Bitcoin and you cannot stop me, nobody can, no court, no nation.

What I'm saying is that if a country did built up a world altering amount of Bitcoins, a James Bond 007 Super Secret Agent Man would come and steal the cryptographic key associated with your Bitcoins and as soon as they have that it's over, all your Bitcoin are gone.

Mubelotix ,
@Mubelotix@jlai.lu avatar

Sure but it's easy to secure cryptophic keys. Way easier than securing 1000 moving tons of gold

Buttons ,
@Buttons@programming.dev avatar

Is it? Like, when any one of the people with access to the key has a standing offer of 1 billion dollars and a life a luxury in another country, are you sure none of them will take the offer? What about when their families are threatened? What about when they get kidnapped and hit with a wrench?

I'm just saying, if we're talking about so much Bitcoin that it alone makes a country a world power, that's enough Bitcoin that things have moved beyond law and order and is in the ugly and dangerous realm of war and espionage.

Mubelotix ,
@Mubelotix@jlai.lu avatar

That's why we have multisig and timelocks. Bitcoin doesn't lack any security feature tbh

Buttons ,
@Buttons@programming.dev avatar

I'm not familiar with those, I'll do some research. How would you explain what those are?

NotMyOldRedditName ,

It's ability to be stolen really comes down to was the password to it ever written down or did they not use a password.

If they didn't write it down, you could conceivably keep it safe from theft as long as the people that know the password don't give it up if tortured.

Also breaking it up into multiple wallets with different passwords that not everyone knows would limit a complete theft.

Edit: in the scenario where it can't be stolen, killing everyone that knows the password would still leave the country with nothing though.

Buttons ,
@Buttons@programming.dev avatar

It has to be easy enough to move the Bitcoins that it can be done when needed. For example, if you split the password up among too many people, then you could "disappear" one of those people and then the Bitcoins suddenly cease to exist (or practically so).

So there's a balance. If it's easy to move the Bitcoins, then a thief can find a way to move all the Bitcoins into their own wallet. Or, if it's very difficult to move the Bitcoins, then an adversary can find a way to make it impossible to move the Bitcoins, essentially destroying them.

dutchkimble ,

I think they should do something dramatic like having a room where the NOC List was stored, but with an air vent on the door instead of the ceiling.

deafboy ,
@deafboy@lemmy.world avatar

I really wish for them to hit the jackpot and break the cycle, but so far, everything valuable in the region was quickly turned into poverty and famine. It's like a bad magic trick.

TheBat ,
@TheBat@lemmy.world avatar

https://antifandom.com/disney/wiki/Economics_of_Recess

yildolw ,

El Salvador Will Keep Putting $71,000 into the President's Swiss Bank Account Daily

FTFY

Yrt ,

Even if bitcoin wasn't just a pyramid scheme and all but right now there are 900 new bitcoins each day, after the next halfing around the corner it's still 450/day. So each day there will be more new bitcoin then he would buy in 1 year.
Even the easiest numbers don't add up even if he is just a 40yr cryptobro Trump version.

deegeese ,
@deegeese@sopuli.xyz avatar

It has zero purpose as currency support, but makes great sense for money laundering. Whose wallet do you think those bitcoins will end up in?

Syn_Attck ,

Just to explain it to people who don't understand how it works.

The point of the mining rewards is to make the Bitcoin supply infinite, while giving the price time to rise and Bitcoin to gain adoption. Once that 21m coins is created, no more can be created, so the price should stabilize and rise over time as less and less Bitcoin is around.

Yrt ,

I know how bitcoin works. But this cap of 21m will be around 2100 or even later if the mining power stays the same as today. So nobody reading this post will be alive around that time. And the same for El Salvador. Should all the people alive right now suffer, cause in around 100 years a theory of a new way for money could succeed? (And no, I don't think bitcoin will ever be more than money laundering and daytraiding craziness ending in more money for the people laundering)

Syn_Attck ,

As far as a currency or store of wealth, Bitcoin is shit. Satoshi was/were an idealist(s), and for them it wasn't about the money, it was about the idea. Decentralized proof of concept that anyone on the internet can access and can't be censored without extreme global geopolitical cooperation. They chose to make it like a currency (Bitcoin) for adoption purposes, but the mathematical and technical concepts behind it can be used for any transfer of information that needs to be reliable, proven (signed), and decentralized, which makes it ideal for some things we are already using, and concepts we can't even imagine yet.

The idea sparked other blockchain concepts such as Monero which is actually designed to be used, like digital cash with tiny fee of pennies, not as a store of wealth or prospecting. It is essentially anonymous as the sender, receiver, and amount are never known except to those with access to the wallets.

Smart contracts still have a long way to go but have some very interesting uses as well.

Why does being around in 100 years matter for Bitcoin, though? It's unlikely that Bitcoin will even be around in 100 years and Satoshi likely knew that or would have made the halving rates longer. Last halving was 2020. In about a month (next halving) block rewards will be halved from 6.25 BTC to 3.125 BTC, which puts upward pressure on miners to innovate (find new ways of reducing energy consumption and increasing hashing power), increasing scarcity, and, historically, increasing price.

Fisch ,
@Fisch@discuss.tchncs.de avatar

It's actually insane how low the Monero fees are, you can make a transaction that takes less than 5 minutes and the fees are gonna be way less than a cent

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