El Salvador’s president, Nayib Bukele, declared on November 18 that the nation will begin daily Bitcoin purchases and compared the collapse of FTX to a Ponzi scam.
“Starting tomorrow, we’ll be purchasing one Bitcoin every day,” Bukele tweeted. Prior to instituting Bitcoin as legal cash in 2017, El Salvador began recording Bitcoin transactions. The nation presently possesses around 2,381 Bitcoin. At an average purchase price of around $43,000, it has accumulated a $54 million loss.
While recent events surrounding the fall of FTX have forced many to distance themselves from cryptocurrencies, President Bukele had a different opinion. He used the situation to enhance his argument for Bitcoin acceptance.
“FTX is the antithesis of Bitcoin,” he said. Then, Bukele compared FTX to a Ponzi scheme and its creator, Sam Bankman-Fried, to the famed con artist Bernie Madoff. “The Bitcoin protocol was designed to avoid bailouts and wealth redistribution,” he asserted.
However, Bukele may see the recent devaluation caused by the FTX crash as a chance to purchase. In the course of last week’s events, the price of Bitcoin decreased by more than 20%, from $21,000 to $17,000.
Justin Sun, the inventor of Tron and adviser to Huobi, seems to share Bukele’s excitement. Sun said shortly after the president’s statement that the Tron DAO reserve will likewise buy one Bitcoin every day.
However, although bigger organizations may believe that the moment is ideal to purchase more Bitcoin, can the same be true for regular investors?
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.