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⚡El Salvador Adds 162 Bitcoins to Reserves🇸🇻

Croxroad

30 Aug 2024 — 4 min read

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🛞 Pioneering Bitcoin Nation

Since March 16, 2024, El Salvador has been consistently buying one Bitcoin daily, steadily increasing its reserves by 162 Bitcoins to a total of 5,851 BTC as of August 23, 2024. This acquisition strategy, facilitated through a cold wallet linked to the Salvadoran government, has resulted in an average purchase cost of around $44,835 per Bitcoin. With Bitcoin's current value, this approach could yield a significant gain of approximately 35%, potentially translating to a $93.45 million profit. This steady accumulation reflects El Salvador’s ongoing commitment to Bitcoin, with the goal of holding the cryptocurrency until its value reaches a point where further purchases become unfeasible.

The Salvadoran government’s strategy extends beyond merely accumulating Bitcoin. There is no indication of plans to sell any of its holdings, demonstrating a strong belief in Bitcoin’s future potential to enhance the country's economic standing. The country’s Bitcoin reserves are managed through a public tracking website launched in May 2024, created in collaboration with mempool.space. This initiative allows citizens to monitor the government’s Bitcoin transactions, promoting transparency and public engagement.

In addition to its investment strategy, El Salvador has been harnessing geothermal energy for Bitcoin mining since 2021, yielding 474 BTC valued at $29 million. The government is also enhancing Bitcoin education through initiatives like the “My First Bitcoin” program, which integrates Bitcoin into school curriculums to prepare students for the digital economy. The National Bitcoin Office is working to train 80,000 government employees in Bitcoin, reflecting a broader effort to embed cryptocurrency knowledge across the public sector. As Bitcoin’s market capitalization surpasses $1.2 trillion, El Salvador’s proactive approach positions it as a leading advocate of cryptocurrency adoption.

🇹🇭 Electricity Raid in Ratchaburi

Thai authorities recently conducted a raid on an illegal Bitcoin mining operation in Ratchaburi, located west of Bangkok, following reports of frequent blackouts in the area over the past month. The Provincial Electricity Authorities and local police discovered unregistered mining rigs consuming substantial amounts of electricity. These operations were not officially reported or billed for their energy use, leading to significant concerns about their impact on local infrastructure.

The mining site, which likely began operations in mid-July, was linked to the power outages that have affected the region. The unauthorised use of electricity not only posed risks to the electrical grid but also threatened to result in long-term damage and increased costs for local residents. Although the mining equipment had largely been removed by the time authorities arrived and no arrests were made, the investigation underscores the severe consequences of unregulated cryptocurrency mining.

Bitcoin mining is known for its high energy demands and associated costs. A similar situation occurred earlier this month when an Airbnb host discovered that guests had been mining cryptocurrency on her property, leading to a substantial $1,500 electricity bill. This incident highlights the broader issue of illegal and unregistered mining activities, which can strain local resources and infrastructure.

🫗 Liquidity

For investors considering Bitcoin as a safe haven, liquidity is a crucial factor. Although top cryptocurrencies like Bitcoin offer high liquidity due to substantial trading volumes and capital, this liquidity can be limited by the platform used. For instance, platforms like Coinbase impose daily liquidation limits, which could make it challenging to quickly exit a large Bitcoin position. In contrast, gold remains highly liquid and stable for large transactions, while stablecoins like Tether (USDT) offer value stability and are commonly used for short-term liquidity needs. In volatile markets, Bitcoin's price can drop sharply if many investors sell off their holdings, further impacting liquidity.

🤣 Crox Road Memes

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