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Isn't the Salvadoran president a cryptobro who lost a huge amount of public money betting on Bitcoin? That's the last I heard of it, have they turned it around
by mathieuh 4y ago
Isn't the Salvadoran president a cryptobro who lost a huge amount of public money betting on Bitcoin?
That's the last I heard of it, have they turned it around at all?
- tigrezno 4y agoHow did he lose the money? Did he sell the bitcoin? Stop the bs.
- nicbou 4y agoHe bought when it was worth far more. At the current value of Bitcoin, his investment has not paid off. Unless you expect Bitcoin to return to this valuation, the money is as good as lost.
- graeme 4y agoHe certainly bought substantially less bitcoin than he could have bought, had he waited to do so. So you could say his investing skills measured in either bitcoin or dollars are poor to date.
- satvikpendem 4y agoWhy are you implying that unrealized losses are not still losses?
- 0xy 4y agoHave you profited money if the price of one of your assets doubles and you do not sell?
- satvikpendem 4y agoI have.
- kman82 4y agoYes. Absolutely. Paper losses/gains are real
- Quindecillion 4y agoWhat do you think "realised" and "unrealised" mean?
- boopboopbadoop 4y agoI’m just a sideliner with popcorn, but don’t they use Bitcoin as a currency? So it seems like in that context, they swapped some of their currency (fiat) for their other currency (Bitcoin), which subsequently lost 60% of its value.
- Quindecillion 4y agoIn fiat terms, yes. The loss is only realised once you convert the Bitcoin back to fiat. The reason it is "unrealised" until that point, is that you could instead simply hold until/if the price of Bitcoin (priced in fiat) rises past the level you bought it at, and still sell at a profit (in real terms if you account for inflation, or in nominal terms if you don't). Then that would be a realised profit. Hence the distinction between unrealised and realised.
- boopboopbadoop 4y agoWhat I’m saying though is that their endgame is not to convert it back to fiat. It’s a currency for them. They’re not hodl’ing their bread money.
- Operative0198 4y agoNo. I recall a few months ago him making a statement that he's buying a bitcoin a day.
- rwmj 4y agoDavid Gerard has done a lot of work covering the craziness: https://davidgerard.co.uk/blockchain/tag/el-salvador/ https://davidgerard.co.uk/blockchain/tag/el-salvador/
- meerita 4y agoHe didn't lose that much with Bitcoin, some other countries have lost x300% their currency value over the past 10 years with Fiat. Argentina for example, has lost x1900% the currency value over 23 years.
- davidhowlett 4y agoThis might be a wording issue but how can a currency lose more than 100% of its value?
- deleted 4y ago[deleted]
- kman82 4y agoAgreed. I’m confused
- randiantech 4y agoI think it relates to exchange rates. On 2001 1 US Dollar = 1 Argentinian Peso. On 2023 1 US Dollar = 185 Argentinian Pesos. In truth, thing is much worst, because you wont get 1 US dollar anywhere (nor banks, financial orgs, or privates will sell it for that price). On the market is close to 1 US Dollar = 360 Argentinian Pesos.
- meerita 4y agoThey have printed so many argentinian pesos that its value decreased notably. Right now, you need 360 pesos in the black market to acquire 1 dollar. 23 Years ago with 1 pesos you acquired 1 dollar.
- deleted 4y ago[deleted]