Bitcoin topped $50,000 on Tuesday morning, nearly a month after it was legalized in El Salvador. On September 7, the price dropped by about $5,000 from $52,500 to about $47,500. In the weeks that followed, the price dropped to $40K and rose to $48,000, only to fall again.
Public sentiment around Bitcoin in El Salvador and many popular news organizations did not miss the opportunity to point out how the country’s Bitcoin value proposition is declining in the short term. Some even considered the adoption of Bitcoin a failure.
However, the price hike may signal a shift in sentiment in favor of the world’s most powerful store of value, as 3 million Salvadorans will soon find the $30 government initially offered an estimate in dollar terms.
And 700 Bitcoin Bukele have already been purchased for El Salvador during the price drop, to be held as a reserve asset, already in value in the millions on a US dollar basis.
Notably, many Bitcoiners point out that valuing a Bitcoin purchase by El Salvador or any dollar-denominated entity is completely missing the point. When you compare rare (but increasingly in demand) bitcoin against ever-increasing asset dollars, you’ll always get fluctuations and price increases in the long run.
What millions in El Salvador now have is the ability to handle themselves, the right and technology to acquire immutable digital ownership and monetary energy. The country of El Salvador has 700 of the rarest decentralized cyber assets known to us, and it is immune to government denigration. As long as they don’t sell their bitcoins, they have nothing to lose, no matter what the dollar price is.
One bitcoin equals one bitcoin.
