The big picture: El Salvador is seemingly doing everything right as it relates to its adoption of Bitcoin as an official national currency, but the feelings from the community haven't been reciprocal as of yet. Will its latest stunt pay off?
Just one day into the experiment, which officially started on September 8, Bitcoin fell from more than $53,000 to around $46,500 according to Coindesk. Value recovered a bit over the past week and a half, but slid again over the weekend. El Salvador saw this as the perfect opportunity to time the market.
We just bought the dip.--- Nayib Bukele 🇸🇻 (@nayibbukele) September 20, 2021
150 new coins!
El Salvador now holds 700 coins.#Bitcoin🇸🇻
Late Sunday evening, El Salvador President Nayib Bukele said his country had just "bought the dip," adding 150 additional Bitcoins to holdings. In total, the country now owns 700 Bitcoins, which equates to around $30.8 million at the current trading rate of $43.964.59.
"Buying the dip" and other catch phrases are common on Reddit, Twitter and other social platforms where people try to hype their preferred cryptocurrencies. We've even seen Elon Musk and other celebs get in on the action, but there's something altogether different about it when it's the president of a nation doing so.
Replying to his own message, Bukele added, "They can never beat you if you buy the dips."
Of course, if it were that easy, everyone would be doing it. The obvious problem here is that without a crystal ball or some other insider information, you never know when a dip truly happens until after the fact. Crypto's notorious volatility only adds more risk to the equation, which is further amplified by the fact that this is government money that's at stake.