Face Palm: Yesterday was the first day El Salvador approved Bitcoin as an official currency, and what happened? Bitcoin price reached a one-month low, from $52,000 to less than $43,000. But the vice president didn't worry. He used the fall to purchase an additional 150 bitcoins, increasing the country's assets to a total of about 550 bitcoins worth about $25 million.
Just a few months after the legalization of Bitcoin, it became the official currency of El Salvador yesterday. The move is expected to help large numbers of Salvadorans living abroad send money to their families - and the government says bitcoin could save the country $400 million a year in transaction costs, although the BBC believes this is closer. At $170 million — and with three-quarters of people without a bank account, fans say using bitcoin makes it easier to transfer money quickly.
But not everyone in El Salvador thinks Switching to bitcoin is a good idea. There have been protests over its passage, with many citing the instability as a precaution. These opponents were most likely justified yesterday when the bitcoin price fell below $43,000 by 15%. BTC has grown quite a bit since then and at the time of writing is close to $45,000.
One of Buckley's opponents said the cut cost El Salvador $3 million, but the president had a different view. The country was "buying deeply" - taking advantage of lower prices to buy more. Now 150 bitcoins have been added to the 400 already made. "We saved a million printed sheets," Buckley wrote.
The discount seems to be coming to an end
Bitcoin drops $10,000 on its first day as El Salvador's official currency