Bitcoin price is trading at around $52,000 per coin, just as the country of El Salvador has made its first ever purchase of BTC, according to President Nayib Bukele via Twitter.
In addition, the driving force behind the top cryptocurrency becoming legal tender in the country for the first time is vowing to keep “buying a lot more” as the law deadline approaches.
El Salvador Buys First 200 BTC With Plans Of Buying A Lot More
On September, 7 2021, El Salvador will become a pioneer in accepting Bitcoin legally as tender across the region.
The movement has early beginnings many might not know about. An anonymous donor kickstarted a project called Bitcoin Beach in El Zonte, located along the Pacific coast of El Salvador.
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The town has no bank. Instead its citizens have become accustomed to using Bitcoin for certain transactions. Tomorrow, it will spread across the country whether everyone agrees with the move or not.
Even Bukele himself publicized his interest in Bitcoin back in 2017 via Twitter, so his support today could be more calculated than the rest of the world considers.
In such a calculated move, Bukele has revealed that the country has obtained its first 200 BTC and will be “buying a lot more” as the law goes into effect.
El Salvador has just bought it’s first 200 coins.
— Nayib Bukele 🇸🇻 (@nayibbukele) September 6, 2021
A Country Just Bought Bitcoin: What This Means
At the current price of Bitcoin, a 200 BTC purchase is around $10 million. At such bulk numbers, it isn’t unheard of for the transaction to have been done OTC, so some discount is plausible.
With companies like MicroStrategy buying up hundreds of thousands of coins, by comparison, doesn’t seem very impactful. But the implications of a country buying Bitcoin for the first time for use as legal tender has far more power.
What happens next? | Source: BTCUSD on TradingView.com
A country is officially adopting BTC as legal tender, making it the first to do so, but definitely not the last. The entire movement could have a domino effect where other nations rapidly adopt the cryptocurrency.
At first, other smaller countries will could follow suit. But what happens if a global superpower with a much larger population follows such lead? An arm’s race for the first ever cryptocurrency could play out between such global superpowers.
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Tomorrow, adult citizens of El Salvador will be able to get up to $30 in BTC from the Chivo Wallet, which according to Salvadorean slang refers to something “cool.” While this won’t directly impact the value of Bitcoin, in support, others are lining up to do the same.
The future of Bitcoin adoption starts now with this 200 BTC buy from a country. Let that sink in.
Featured image from iStockPhoto, Charts from TradingView.com