El Salvador will buy Bitcoin daily, says unfazed President Bukele
El Salvador’s President Nayib Bukele announced that the country would begin buying Bitcoin on a daily basis from November 18, comparing the collapse of FTX to a Ponzi scheme.
“We buy one Bitcoin every day starting tomorrow,” Bukele said in a post on Twitter. Before the introduction of Bitcoin as legal tender last year, El Salvador started to put Bitcoin on the books. The Central American country currently has around 2,381 Bitcoin. However, at an average purchase price of approximately $43,000, it has accumulated a loss of $54.
Bukele Still Bullish on Bitcoin
While the recent events surrounding the FTX collapse have led many to distance themselves from cryptocurrencies, President Bukele felt differently. He used the incident as an opportunity to strengthen his case for Bitcoin adoption.
“FTX is the opposite of Bitcoin,” he said. Bukele then compared FTX to a Ponzi scheme, and founder Sam Bankman-Fried to infamous fraudster Bernie Madoff. “Bitcoin’s protocol was created precisely to prevent … bailouts and wealth allocations,” he claimed.
However, Bukele may see the recent weakness, due to the effects of the FTX collapse, as a buying opportunity. The price of Bitcoin fell over 20% during the course of events last week, from $21,000 to $17,000.
Right Time to Buy Bitcoin?
Tron founder and Huobi advisor Justin Sun seemed to share Bukele’s enthusiasm. Shortly after the president’s post, Sun said that the Tron DAO reserve would also buy one Bitcoin per day.
But while larger institutions may feel the time has come to buy more Bitcoin, can the same be said for retail investors? Binance CEO Changpeng Zhao doesn’t seem to think so.
Earlier this week, Zhao advised investors against buying cryptocurrency during this volatile period, but said they should continue to hold. “Unless you are very experienced, very mature, very confident and can handle the risk, I would recommend most people just hang on for this period,” Zhao said.
However, Zhao acknowledged that the weakness in crypto prices made it easier to support struggling businesses with his recovery fund. Earlier, the Binance CEO said it would launch a recovery fund to support quality crypto companies affected by the FTX collapse. “We actually think this is a pretty good time to do it because most of these projects’ valuations are much more reasonable than they were a year ago,” he said.
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