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El Salvador buys the dip yet again

El Salvador

It seems like El Salvador takes a strong shot of optimism every time Bitcoin begins its descent. As the crypto world is wrecked by yet another crash that has resulted in a significant fall in value, El Salvador is fuelling up for a supposedly bright future built on the foundation of the world’s biggest cryptocurrency. And to this end, they have bought the dip yet again. With this recent purchase, El Salvador now has a total of 410 Bitcoins which amounts to an estimated $14.8 million. El Salvador’s president who has been quite active in promoting Bitcoin announced via his tweet that the country has bought the dip yet again.

The Bitcoins were purchased for a total of $15 million. We still don’t have a clear answer for whether the funds used for procuring the coins were from the state fund or a private fund. The tweet received an immediate reaction from Twitterati with some applauding the move while others expressed displeasure. Given the constant decline of Bitcoin since its astounding rise last November, people are rather skeptical about the country spending such exorbitant amounts on an asset that is lined with certainty at the moment.

The What and Why

Although cynicism persists, there are also a group of crypto enthusiasts who are speculating on buying the dip just like El Salvador given the general crypto trend. Whether their expectation will become true remains to be seen. Coming back to El Salvador, Bukele has been rather enthusiastic and dedicated to promoting Bitcoin. It will not be an exaggeration to say that Bukele’s energy when it comes to Bitcoin is rather unprecedented. Well, the fact that the man has made a plan to build a “Bitcoin City” speaks volumes about this so-called enthusiasm. It cannot be denied that a city in the shape of a coin at the foot of a volcano sounds rather ethereal (if you sense sarcasm here, that is mere coincidence).

As you know, this is not the first time El Salvador is buying the dip. Last September Bukele made a purchase procuring up to 150 coins when the value fell by 10 percent. This optimism has made El Salvador a familiar name in Bitcoin discussion platforms. And it cannot be denied that the country’s embrace of cryptocurrency has been beneficial for Bitcoin as well. Bitcoin saw a significant rise in June when the country declared it as their legal tender. Whether this immense optimism and faith will be rewarded and whether we will see a “Bitcoin City” shaping up in the near future remains to be seen.

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