The day before Bitcoin was officially declared legal tender in El Salvador, the president announced that the country has bought 200 BTC and plans to buy “much more.”
With this announcement, El Salvador officially becomes the first country in the world to put bitcoin on its balance sheet and keep it in its reserves. This historic moment comes just about three months after the government voted on a bill to declare bitcoin as a legal tender, which was finally signed into law. But it will officially take effect after 90 days on September 7, 2021.
A country that adds bitcoins to its reserves makes a solid commitment to the country’s future. With just 21 million BTC, they are now saving and growing this wealth with money that no government or central bank can print more. With the growing demand for bitcoins and declining supply, the president has discovered that Bitcoin is the best vehicle to start storing the country’s wealth as it has an incredible amount of profits.
Game theory is in full swing as El Salvador adopts a Bitcoin standard asking the question of who will be the next country to buy BTC? We’ve seen a lot of interest from countries like Panama, Colombia, Brazil and more. Now countries have entered a race to accumulate as many bitcoins as they can, or fall behind. It will be very interesting to see who buys the second and third, creating a domino effect until all countries buy them.
The eyes of the world are on Bitcoin and El Salvador. The world is changing. Children growing up today will not remember a world without Bitcoin. We are heading towards a bright orange future.