Appreciation in Bitcoin market value is gaining momentum with the hype around El Salvador’s official adoption of the most popular cryptocurrency.
Following months of preparation, El Salvador officially made bitcoin its second currency, to compliment its fiat, the US dollar, which it also adopted in 2001.
El Salvador’s President defies IMF, World Bank
In a tweet announcing the entry of the Central American country in bitcoin community, El Salvador’s President, Nayib Bukele, said, “El Salvador has just bought it’s first 200 coins.”
He added that, “Our brokers will be buying a lot more as the deadline approaches.” El Salvador chose bitcoin as its official currency despite warnings from the International Monetary Fund and World Bank.
Both financial institutions had stated that making a digital asset an official currency, will be detrimental to any country’s economy, but, Bukele went ahead with the implementation.
Prior to the launch, Bukele had stated on Monday night, that, “Tomorrow, for the first time in history, all the eyes of the world will be on El Salvador.”
The decision of El Salvador has been widely accepted by the bitcoin community, with Microstratey founder and bitcoin disciple, Michael Saylor, crowdsourcing for investment to support the country.
Saylor said he and some other investors are planning to invest $30 worth of bitcoin in solidarity. The hype trailing El Salvador’s decision has driven bitcoin value up by 1.34 percent in last 14hours.
Bitcoin current price is $52,508.73, although it has traded as high as $52,634.50 within the last 13hours, according to crypto tracker, Coindesk – it continues to sell above $51,000 in September, having traded mostly below $50,000 in August.
The digital asset is heading for a milestone it clocked in May, when it hit the highest value of $63,569, before billionaire, Elon Musk, withdrew his support for bitcoin over environmental degradation claim.
Bitcoin disciples believe the digital asset is done with its price correction (which is returning asset value back to what is expected to be its original worth.) and will experience another price bubble.
Commenting on the growth of bitcoin, Saylor said, “If I had chosen #Gold instead of #Bitcoin last year, it would have been a multi-billion dollar mistake. It doesn’t help to diagnose the problem if you don’t choose the right solution.”