Salvadorans who received and kept the government bond of USD 30 in bitcoin (BTC) last September, have seen their savings revalued thanks to the current bullish rally of the cryptocurrency. On average, the fraction of bitcoin represents USD 44.4 at today’s price.
Under the Bitcoin Law, the government of El Salvador decided to send the equivalent of USD 30 in BTC to each Salvadoran citizen who downloaded the «Chivo» application. It is a cryptocurrency wallet created by the State to promote the use of bitcoin. However, September, the month in which the bonus began to be sent, was corrective for the price of bitcoin. The same day of the entry into force of the law, the cryptocurrency lost 11% of its value in dollars.
The average price of bitcoin in September was USD 45,562, implying that Salvadoran citizens who claimed the USD stimulus 30, they received about 0.00065844 BTC. However, the fraction of BTC would be higher, if it was paid on the days when the price reached lower levels.
Bitcoin just hit a new all-time high of $ 68,530 this Tuesday, November 9. This implies an increase of 72.9% from its minimum price in September, when it was priced at up to USD 39,600 per bitcoin. If we take this price range as a reference, the differential that the bond holders have earned in the Chivo wallet would be even greater, since the bond would reach 0.00075757 BTC, and would have a current value of USD 51.15.
In bitcoiner slang the expression “buy the dips” is common (in English “ buy the dips «), which comes from the world of trading. It refers to buying an asset when the price falls to make a profit at the time of a price rebound. In September, bitcoin corrected around 7% in relation to the previous month , which allowed the Chivo wallet bonus to be sent to users with a «discount ».
El Salvador finances projects with the earnings you get from your bitcoin fund
Salvadoran President Nayib Bukele has repeatedly referred to how beneficial it can be to buy bitcoin when its price drops, and has announced several BTC comparisons for his nation during the corrections . In a tweet published on October 11, he said that, for the moment, users who saved part of the USD 30 bonus already had 40% profit.
On the other hand, the president announced the construction of a veterinary hospital and the remodeling of 20 schools, financed with the positive spreads left by the rise in the price of bitcoin in the month of October. The Salvadoran State maintains reserves for 1,120 BTC, announced by the president himself on the social network Twitter.
However, not everything has been positive for the adoption of bitcoin in El Salvador. Chivo wallet users faced various failures when using and configuring the application, or loss of their balances. Likewise, there are reports of that more than 700 people have been victims of identity theft by hackers who have used their personal data to claim the bonus of the app.