El Salvador President Nayib Bukele introduced that the nation would begin shopping for Bitcoin every day from Nov. 18, and likened the collapse of FTX to a Ponzi scheme.
“We’re shopping for one Bitcoin day-after-day beginning tomorrow,” Bukele mentioned in a put up on Twitter. Previous to introducing Bitcoin as authorized tender final yr, El Salvador began placing Bitcoin on its books. The Central American nation at present holds about 2,381 Bitcoin. Nevertheless, at a mean buy worth of roughly $43,000, it has collected a lack of $54.
Bukele Nonetheless Bullish on Bitcoin
Whereas the current occasions surrounding the FTX collapse have led many to distance themselves from cryptocurrencies, President Bukele felt in another way. He used the incident as a possibility to strengthen his case for Bitcoin adoption.
“FTX is the alternative of Bitcoin,” he mentioned. Bukele then likened FTX to a Ponzi scheme, and its founder Sam Bankman-Fried to notorious fraudster Bernie Madoff. “Bitcoin’s protocol was created exactly to forestall… bailouts and wealth reassignments,” he argued.
Nevertheless, Bukele might even see the current depreciation, as a result of results of the FTX collapse, as a shopping for alternative. The worth of Bitcoin fell over 20% over the course of occasions final week, from $21,000 to $17,000.
The Proper Time to Purchase Bitcoin?
Tron founder and Huobi advisor Justin Solar appeared to share Bukele’s enthusiasm. Shortly after the president’s put up, Solar mentioned that Tron DAO reserve would additionally buy one Bitcoin per day.
However whereas bigger establishments might really feel the time is correct to purchase extra Bitcoin, can the identical be mentioned for retail buyers? Binance CEO Changpeng Zhao doesn’t appear to suppose so.
Earlier this week, Zhao suggested buyers towards shopping for cryptocurrency throughout this unstable interval, however mentioned they need to proceed to carry. “Until you’re very skilled, very mature, very assured, and might deal with the chance, I might advocate most individuals simply maintain for this time period,” Zhao mentioned.
Nevertheless, Zhao acknowledged that the depreciation in crypto costs made it simpler to assist struggling companies along with his restoration fund. Earlier, the Binance CEO mentioned it will launch a restoration fund to assist high quality crypto firms affected by the FTX collapse. “We really suppose that this can be a fairly good time to do it as a result of most of those initiatives’ valuations are far more cheap than they had been a yr in the past,” he mentioned.
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