Speak!This country fry Bitcoin, a big loss of 55%, the president is calm: stop looking at the chart!Musk continues to sing more dog coins

Recently, the continuous plunge of virtual currencies represented by Bitcoin has caused global market attention.

As Bitcoin plummeted, the world's first country that officially recognized Bitcoin as the legal currency -Salvador has once again become the focus of the market. Data show that since the establishment of Bitcoin in September last year, the current 2301 Bitcoin bought by the Salvador government in batches has shrunk by 55%compared with the cost of market value, and the floating loss is about 57.76 million US dollars (about 386 million yuan) Essence

However, Nayib Bukele, President of the country, is still optimistic about Bitcoin's investment value. He released Twitter on Saturday (June 18) saying: "I see some people worrying and anxious about the market price of Bitcoin. In this regard, my suggestion is to stop looking at the chart and enjoy life. If If you invest in Bitcoin, your investment is safe, and the value of Bitcoin will increase significantly after the bear market. Patience is the key. "

It is worth noting that Musk also tweeted on June 19 that he would continue to support dog coins and also claimed that he was "buying."

Following Bitcoin's US $ 18,000 mark on June 19 and nearly $ 17,600 nearly $ 17,600, Bitcoin temporarily stopped the decline. At around 22:40 pm on June 20, Bitcoin rebounded to nearly $ 20,680.

Investment shrinks 55%! President Salvador: Patience is the key to stop looking at the chart!

On June 18th, when talking about Bitcoin's investment, Salvador President Nayib Bukele said: "I see some people worry and anxiety about the market price of bitcoin. My suggestion is: stop looking at the chart and enjoy life. If you invest in Bitcoin, your investment is safe, and the value of Bitcoin will increase significantly after the bear market. Patience is the key. "

According to the statistics of the website of the country's Bitcoin assets, the total cost of Salvador's coin purchase was US $ 105 million, with an average purchase price of nearly US $ 46,000 per/USD. According to Bitcoin's latest price ($ 20803), the Bitcoin in Salvador's hands has floated 54.68%.

Source: badiBtracker.com

Judging from the purchase record, the Salvador administration has been "built" on September 6, 2021, and bought 550 Bitcoin at an average price of nearly 52,000 US dollars. Almost in the second month of the government's "fixed investment" (October 2021), Bitcoin touched the high point of $ 60,000, and then Bitcoin began to decline. $ 59,000, to $ 49,000, to $ 37,000 in January this year. In May this year, the Salvador administration bought 500 Bitcoin at an average price of $ 31,000.

When Bucker had repeatedly "plus" Bitcoin in the Salvado government, it said that it was "buying dips." However, Bitcoin still does not change the decline. Bitcoin currently quotes nearly $ 20,800, and the price of the last "low position" in May this year has fallen by more than 30%.

Minister of Finance denied that Bitcoin's plunge pose a threat to the state's fiscal

Last week, Alejandro Zlaya, the Minister of Finance of Salvador, denied that the price of Bitcoin's price fell sharply on the country's fiscal situation.

"When they told me that when Bitcoin (decline), when Salvador's fiscal risk was very high, the only thing I could do was to keep a smile." Silaa said at a press conference, "In fact, the impact on the national finances really really really really affects the national finances. It's very small. "Celaria quoted a media's earlier estimation data, saying that the country's investment in Bitcoin had only lost $ 40 million. He said, "40 million US dollars or less than 0.5%of our country's fiscal budget."

Seraja also said that because Salvador did not sell any Bitcoin, it actually did not suffer any losses.

It is reported that Salvador established a $ 150 million fund to buy Bitcoin, which only accounts for about 4%of its US dollar reserves, accounting for not high. However, as a country with backward economic development and tight cash flow in Latin America, the impact of Bitcoin investment losses is far more profound than the profit and loss on the book. According to the Associated Press, about one -fifth of the country's living expenses per day is less than $ 5.5.

In June 2021, the Salvador Parliament passed a bill to approve Bitcoin as the legal currency of the country. The bill officially took effect in September last year, and Salvador became the first country in the world to officially recognize Bitcoin as a legal currency.

It is reported that the Salvador administration gave up the previous legal currency COLON 20 years ago to use the US dollar. About one -fifth of the country's GDP.

The El Salvador government said that Bitcoin as a legal currency can save $ 400 million in transaction costs for the Salvado people each year, to promote employment and economic development, and reduce Salvador's dependence on the US dollar.

The Bitcoin Act issued by the El Salvador government has been supported within the government, and some people and enterprises with direct interests related to Bitcoin also support the bill. However, a number of polls show that more than half of the Salvador people do not support the bill. The people of the country have launched many protests and opposed Bitcoin to become legal currencies. According to Xinhua News Agency, on January 25, the executive board of the International Monetary Fund (IMF) had urged Salvado, a Chinese American country to cancel the status of Bitcoin's legal currency, and warned Bitcoin to use risks in terms of financial stability. The IMF Executive Board issued a statement after ending the fourth clause of El Salvado, saying that executive directors believed that it was necessary to strengthen supervision on Bitcoin, and Bitcoin used risks in financial stability, financial integrity, consumer protection, and related financial and debt. It is urged Salvador authorities to cancel the status of Bitcoin's legal currency status.

Since becoming Salvador's legal currency in September last year, Bitcoin prices have fallen by about 55%.

At present, Salvador's $ 800 million bond will expire in January next year, but whether the government can obtain reinstatement to cover the loan still has uncertainty. On June 1, the S & P global rating reduced the rating of Salvador to CCC+, which is the same as Ukraine, which means that the risk of debt default is very high.

Musk's push again: is buying dog coins

On June 19, local time, Musk wrote in Twitter that he would continue to support dog coins. In this tweet, some netizens replied that when Musk wanted Musk to continue to buy the virtual currency, Musk said, "I am buying."

Picture source: Twitter screenshot

After Musk's push, the price of dog coins rose, once rebounded from 5.1 cents to 6.25 cents, up over 20%.

It is worth mentioning that according to AFP reported on June 16, a "dog coin" investor filed a lawsuit against billionaire Elon Musk and its Tesla and Space Exploration Technology Company on Thursday, and claimed claims $ 258 billion.

It is reported that Kis Johnson, who claims to be lost due to investing in dog coins, said he was a "American citizen deceived by dog ​​currency cryptocurrency pyramid scam." He demanded that the lawsuit filed by a court in New York was classified as a collective lawsuit to represent people who have suffered losses by investing in dog coins since 2019.

Johnson estimates that investors have lost approximately $ 86 billion since Musk started promoting this virtual currency. He asked Musk to compensate the money to investors and pay twice the loss of compensation -plus $ 172 billion.

Editor: Lin Gen

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