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Thursday 28 October 2021 2:42 pm  |  Updated:  Friday 29 October 2021 11:52 am

El Salvador’s government picks up 420 Bitcoin amid price dip

By: Lily Russell-Jones

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El Salvador Mines Bitcoin Using Energy From Volcanoes
Aerial view of energy extraction at the La Geo Geothermal Power Plant on October 22, 2021 in El Salvador. After declaring Bitcoin legal tender along with US Dollar, Salvadoran government mines cryptocurrency with 300 computers in plant powered by Tecapa Volcano. (Photo by Alex Peña/Getty Images)

El Salvador’s government, the first in the world to make a cryptocurrency legal tender, picked up 420 more bitcoins as price dipped below $60k.

Bitcoin has been on a major hotstreak over the past two weeks maintaining a price above $60k for 11 consecutive days before finally deflating yesterday to $58k.

El Salvador’s government used the brief dip in price as an opportunity to pick up $25m worth of Bitcoin, adding 420 coins to the 150 purchased by the government on 20 September.

“It was a long wait, but worth it. We just bought the dip! 420 new Bitcoin,” the country’s charismatic young president Nayib Bukele wrote on Twitter.

It was a long wait, but worth it.

We just bought the dip!

420 new #Bitcoin🇸🇻

— Nayib Bukele (@nayibbukele) October 27, 2021

“hahaha we’re already making a profit of the bitcoin we just bought,” wrote Bukele an hour later as Bitcoin’s price climbed back towards the $60k mark.

It comes after El Salvador declared that every business in the country would be required to accept bitcoin alongside the US dollar as part of a massive economic experiment.

The scheme was proposed as a way to help Salvadorans save on commissions for remittances, mostly sent from the United States. Last year the country’s economy received a $6bn boost from remittance payments, but lost out on $400m paid in commission fees.

Bitcoin, the so-called King of Crypto is renowned for facilitating low-cost, seamless international payments.

Its safe to say that not everyone in El Salvador is sold on the idea. The first month of the roll out was marred by protests, technical glitches and some major price volatility.

Nonetheless, Bukele insists that the policy is popular with 3m citizens getting a government issued Chivo crypto wallet, nearly half the country’s population.

In recent weeks, El Salvador has even begun mining Bitcoin using geothermal power generated by volcanoes to up the government’s crypto holdings.

Read more: El Salvador begins mining Bitcoin using volcanic energy

Read more

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