The president of El Salvador has some advice for bitcoin investors. He believes investments in the largest cryptocurrency are safe and will “grow tremendously” after the bear market.
President of El Salvador on Bitcoin Investments
El Salvador’s President Nayib Bukele has spoken out about bitcoin investments amid BTC’s heavy sell-off.
El Salvador has bought 2,301 bitcoins since the country made BTC legal tender alongside the US dollar in September last year. With the price of bitcoin plummeting, El Salvador’s BTC investment has reportedly lost 50% of its value, or more than $50 million.
“I see that some people are concerned or anxious about the price of the bitcoin market,” Bukele tweeted on Saturday, explaining:
My advice: stop looking at the chart and enjoy life. If you have invested in BTC, your investment is safe and its value will grow tremendously after the bear market. Patience is the key.
Many people have expressed concern about El Salvador’s fiscal health due to a large bitcoin position on the country’s balance sheet.
Salvadoran finance minister Alejandro Zelaya dismissed the concerns last week, stating that the “tax risk is extremely minimal”. He added: “When they tell me that the fiscal risk to El Salvador because of bitcoin is very high, I can only smile.”
Bitcoin fell to levels not seen since 2020 early this weekend. At the time of writing, BTC is trading at $20,141, up 12% in the past 24 hours and 33% in the past seven days.
Some people share Bukeke’s optimism, including bitcoin bull Michael Saylor and Skybridge Capital founder Anthony Scaramucci.
However, some others are less optimistic about where bitcoin is headed. Mad Money host Jim Cramer expects BTC to drop to $12K. Doubleline Capital’s Jeffrey Gundlach said he wouldn’t be at all surprised if bitcoin drops to $10K. Rich Dad Poor Dad author Robert Kiyosaki said bitcoin could bottom out at $9K. Guggenheim CIO Scott Minerd said bitcoin could drop to $8K.
Do you agree with the president of El Salvador? Let us know in the comments below.
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