Latin America, specifically El Salvador, is a new bitcoin hotspot. The country has more than 500 bitcoin ATMs, Salvadorans have their specially designed cryptocurrency wallet, Chivo. Moreover, Nayib has given hints about the new bitcoin city in El Salvador near its Volcano in the past few meetings. You can check different trading platforms like www.cryptolina.com to get more information about cryptocurrency trading. Nayib recently revealed the amount of gold El Salvador has and explained why bitcoin is as profitable and efficient as gold.
Why Does Nayib Prefer Bitcoin Over Gold?
Nayib Bukele, in his recent tweets, expressed how bitcoin is better than gold. Nayib has publicly tweeted about the total gold reserve of this country. According to the reports, El Salvador has a gold reserve worth nearly $80 million.
Nayib Bukele stated that the market value of gold is continuously declining, and the country has lost almost 0.4% of this $79 million. Nayib Bukele also tweeted that if the country had gone for bitcoin rather than gold, the 79 million would have soared by almost 140%, nearly $200 million.
Bukele continues to buy the dip?
Bukele, the president of El Salvador, has bought almost every bitcoin dip since the country has adopted this currency as a legal currency. On the 4th of December, Nayib bought almost 150 BTCs for $48,670 each, and after buying the dip, Bukele tweeted about his recent bitcoin purchase.
The president even faced criticism as Peter Schiff requested that he not waste Salvadorans’ capital gains and taxes to buy every dip. Peter Schiff also said that every dip is not the last dip and many more dips are about to arrive. Bukele replied to this tweet of Peter Schiff savagely. Moreover, Nayib stated that El Salvador is safe after the recent bitcoin purchase.
How many BTCs is El Salvador holding right now?
El Salvador holds a bitcoin reserve way more than the gold reserve as a gold reserve in El Salvador is worth only $79 million. As per sources, after the latest purchase of El Salvador, the country has almost 1350 BTCs. Micro strategy, one of the most popular and most significant public Bitcoin holders, supported Nayib Bukele after his recent purchase.
Why Nayib Prefer Bitcoin Over Gold?
Micro strategy’s co-founder Michael Saylor tweeted that buying gold in 2020 instead of bitcoin would have a multi-billion-dollar mistake. Bukele prefers bitcoin over gold, including some advantages of bitcoin as an asset. The most significant cryptocurrency, Bitcoin, is not pegged or roped with a single fiat currency and economic infrastructure.
Undeniably gold has a finite supply similar to bitcoin, but are we familiar with the amount of gold left? Unfortunately, no. But we all know the bitcoin developer authorized only a supply of 21 million BTCs, and 80% of BTCs are already in circulation. So, in short, only 2-2.5 million BTCs are locked.
Gold is a physical asset, and this feature of gold offer it numerous advantages asset. For example, it is not exposed cyber threats etc. However, gold as a store value is tough to transfer. To transfer gold from one country to another country legally, one must pay heavy customs and taxes.
On the other hand, bitcoin enhance the ease of transporting store of value to any region. Bitcoin is unregulated and even banned in some countries, but gold is not banned in any region. Storing gold reserves compared to bitcoin is difficult as the government authorities have to build an antitheft vault to protect it from theft.
Government authorities can buy a hardware wallet to store any bitcoin when it comes to bitcoin. Hardware wallets like Trezor consist of buying bitcoin from the wallet itself. Trezor has one small touch screen with an inbuilt exchange, and it offers ample exchange to buy bitcoin. Moreover, hardware wallets are protected from viruses and malware, and the cost of hardware wallets lies in $100 to $200.
There are thousands of digital assets, but cryptocurrency has made it so far and are comparable with gold. However, according to reports, the scarcity of gold is less than bitcoin.
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