As we bid farewell to June 2022, we witnessed the worst performing quarter for Bitcoin (BTC). BTC fell nearly 56% in the quarter. However, it can be said that the environment is just right for entering the crypto markets.
El Salvador is undoubtedly one of the most optimistic countries regarding Bitcoin. Just today, President Nayib Bukele announced the purchase of an additional 80 Bitcoins for $19,000 each. This is on average less than half of what it paid for its previous purchase. The nation has bought BTC on almost every dip, which appears to be a popular strategy for the country. Without a doubt, this has lowered the average cost of every BTC in its coffers.
To date, El Salvador has spent over $100 million on Bitcoin. After the recent slump, reserves are worth less than half.
Criticism of Bitcoin Purchase in El Salvador
While many celebrate El Salvador’s purchase, some have criticized Bukele.
Among the critics is Eric Voorhees. Voorhees is the founder of ShapeShift and an early adopter of crypto. Voorhees was not on board with the country’s Bitcoin purchase and shared his thoughts on Twitter.
Voorhees’ post came hours after Bukele’s announcement. Voorhees has criticized governments as a concept, and he has previously spoken out against taxation, often called theft.
In this case, Voorhees appears to be against the El Salvadoran government using taxpayers’ money to buy BTC. While the nation is optimistic about Bitcoin, that idea does not necessarily reflect the beliefs of its citizens.
While companies like MicroStrategy invest in Bitcoin with investor approval, a country like El Salvador does without, and citizens rarely have a say in matters of this magnitude. Therein lies, for many, the fundamental problem with the country’s BTC law.
Bukele has also received criticism from Ethereum co-founder Vitalik Buterin. Buterin spoke out against companies being forced to accept Bitcoin as payment. And asked the crypto community not to praise the president.
In addition, many residents have also spoken out against the Bitcoin law.
El Salvador’s primary motive in accepting Bitcoin was to bankroll bankers. However, this goal seems to be completely forgotten. Reports show that many citizens stopped using the state-sponsored Chivo wallet after receiving the $30 BTC incentive. In addition, the same information highlighted the fact that most people did not fully understand crypto.
As of going to press, BTC was trading at $19,306.93, down 8.5% over the past seven days.