The Bitcoin Crash Is Taking El Salvador's Big Bet with It
vice.com
vice.com
That being said 50% crash on "its currency" may not be uncommon. I believe Turkey's currency has had a similar devaluation.
It had never happened in El Salvador though. The USD and the former currency were stable for decades.
The basic deal is that Bitfinex owns both Blockstream and Tether and uses the later to pump the former.
Tether needs a nation state's help to look legitimate. So Tether printed and sold fresh USDT to El Salvador for $0.25 to the dollar (or even cheaper). El Salvador used the USDT to buy Bitcoin and then issued goveerment bonds backed by thoes Bitcoin.
You might think Tether is losing selling USDT for $0.25, but remember this is not actaully $1 USD, this is $1 USDT. Tether benefits more from increasing money velocity and supply more than they lose by inflating their scam token. Blockstream's Adam Back helps promote Tether and maintain the Bitcoin Core GitHub repo to make sure BTC is unusable as peer-to-peer digital cash which pushes people to stable coins and competing networks, like Blockstream's own "Liquid, lBTC" token.
Not what you'd expect from the most convincing candidate of Satoshi Nakamoto's true identity [1].
[1] https://chainbulletin.com/the-unmasking-satoshi-aftermath/
This articles about Bitcoin losing value are missing the bigger picture. It’s expected that this will happen during its infancy so it actually doesn’t matter at this point in time if it goes up or down.
Give it time to breathe lol.
If your time horizon is a year, bitcoin isn’t for you.
Bitcoin is the hardest money known to man, but not everyone heeds that and there are tradeoffs.
If you look at bitcoins price history, %95 of the time— maybe %99! - it’s down from its all time high.
But buying at the exact peak is even harder than buying at the exact bottom.
But places like vice assume that’s what everyone did.
Or that El Salvador isn’t continuing to buy.
Dollar Cost Averaging is the way to go.
Don’t be expecting bitcoin to hit any particular price target at any point.
I for one just started out buying the equivalent of real actual monetary inflation as a percentage of my net worth. Until my net worth was too high to keep doing that.
El Salvador is booming. Bitcoin is unlocking value in its economy that have nothing to do with sitting in the government treasury.