The day before bitcoin is officially declared legal tender in El Salvador, the president announces that the country has bought 200 BTC and they plan on buying “a lot more.”
With this announcement, El Salvador officially becomes the first country in the world to put bitcoin on their balance sheet and hold it in their reserves. This historic moment comes just about three months after the government had voted on a bill to declare bitcoin as legal tender, which was ultimately signed into law. But will officially take effect after 90 days on September 7th, 2021.
A country adding bitcoin to their reserves is making a solid bet on the future of the country. With there only being 21 million BTC, they are now saving and growing that wealth in a money that no government or central bank can print more of. With the ever increasing demand for bitcoin and the decreasing supply, the President has figured out that Bitcoin is the best vehicle to start storing the country’s wealth in as it has a unbelievable amount of upside.
Game theory is in full swing as El Salvador is adopting a Bitcoin standard begging the question of who will be the next country to buy BTC? We’ve seen lots of interest coming from countries like Panama, Colombia, Brazil, and more. Countries have now entered a race to accumulate as much bitcoin as they can — or get left behind. It will be very interesting to see who buys second and third, creating a domino effect until all countries have bought some.
The worlds eyes are all on Bitcoin and El Salvador. The world is changing. Kids growing up today won’t remember a world without Bitcoin. We are heading into a bright orange future.