In September, El Salvador became the first country to adopt Bitcoin as a legal tender, and now it went ahead and purchased 100 BTC as the world’s first and biggest cryptocurrency dropped below $54,000.
The President of El Salvador took to Twitter to announce this new development. The country now owns more than 1100 BTCs and continues to add to its treasury.
Furthermore, the President has also approved Bitcoin mining using geothermal energy from the volcanoes in the country. The optimism to Bitcoin adoption has led to the foundation for a safe haven for BTC wealthy people, which is called the “Bitcoin City.”
El Salvador is “unfortunate”
As per Peter Schiff, the CEO of Euro Pacific Capital Inc., a broker-dealer based in Westport, Connecticut, the citizens of El Salvador were rather “unfortunate,” and buying the dip is nothing but trouble for the economy of the nation. Schiff replied to the tweet by President Nayib Bukele, wondering “how many more dips they will buy before they cut their losses and sell.”
On the other hand, a Twitter user by the name of “BitSharkie” called out Schiff on his comment, asking him when he’d advise his clients to sell the gold that they own because “there have been plenty of dips worthy of making the call.”
Answering this question by the Twitter user, Schiff defended pro-gold stance.
“What losses are you referring to? I’ve been advising people to buy #gold since it was under $300 per ounce. It’s currently near $1,800. The record-high is only about $2,100.”said Schiff in another tweet
The Twitter user stunned Schiff with another fact, stating that investors witnessed gold’s all-time high over ten years ago, and considering the inflation of 3% per year, gold is -30% since the high prices. However, Schiff did not reply to this comment.
El Salvador’s Bitcoin adoption has been a topic of multiple debates, whether a volatile asset like BTC should be the legal tender of a nation and used for payments.
As per a recent report by the IMF or International Monetary Fund, it will be conducting a deep analysis of the impact of BTC on the economic impact of Bitcoin on El Salvador.