On Wednesday, October 27, Bitcoin (BTC) and almost the entire cryptocurrency market experienced a strong correction with Bitcoin slipping under the $60,000 for a 10% drop. Seeing the positive here, Bitcoin nation El Salvador bought the Bitcoin dip adding 420 Bitcoins worth $25 million to its national holdings, according to a Twitter announcement of president Nayib Bukele
It was a long wait, but worth it.
We just bought the dip!
420 new #Bitcoin
— Nayib Bukele (@nayibbukele) October 27, 2021
Bukele further noted that the country is making good profits from past purchases and explained how they do so:
“How do we make a profit if 1 BTC = 1 BTC ?
We have a trust fund accounted in USD, but the trust is funded by both USD and BTC.
When the BTC part revalues in comparison to the accounting currency (USD), we are able to withdraw some USD and leave the trust with the same total.”
El Salvador has made it a habit of timing their Bitcoin purchases just right. The recent addition of 420 Bitcoin is the country’s first big purchases in more than one month after it purchased another dip on September 20.
Until now, El Salvador remains the first country with Bitcoin as a legal tender along with the USD. El Salvador now holds a total of 1,120 BTC worth nearly $66 million.
The company’s economy heavily depends on the $6 billion in remittances received from abroad. Getting Bitcoin as the official currency will help to cut down on remittance costs.
After the Bitcoin price dipped more than 10% on Tuesday it is currently changing hands at $58,769 with a market cap of $1.108 trillion according to CoinMarketCap data.
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