What Can Countries Learn From Bukele And El Salvador

El Salvador and its famous president Bukele has been making the news this year, I mean all year long. Ever since the news that El Salvador is going to accept bitcoin as legal tender broke out, the whole world is talking about it.

Doing The Impossible

At first skeptics tried to take advantage of the situation and convince the world that this is the biggest mistake of the history. Then when the big day came, BTC became official in El Salvador, market makers tried to teach El Salvador and Bukele a lesson by driving BTC price down, hoping to prove how a country can lose half of its holdings value in a matter of seconds. Then every time there's a dip you can see articles pointing towards El Salvador, saying they must be in deep sh*t because of the dip.

Well, Bukele is no saint, we all know that, but he wasn't born yesterday and he's certainly not a faint hearted. After two month of being the world's first BTC country leader (I think I can say that, he deserves the title) he is stronger than ever and has showing results not many have expected.

Right when the news about El Salvador adopting BTC broke, I thought this guy has a huge responsibility on his shoulders not only to his country but to the whole world. Being firs means paving the road for the rest that want to come and you can't fail. There's no room for errors, if you fail, not only looks bad on you but on the whole world.

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What Bukele Has Done So Far

After BTC become legal tender in El Salvador (September 2021) and the first dip happened, he was the first to tweet that El Salvador bought another 300 BTC. This way he took the opportunity of speaking ill of the county away from those who has been betting on them to fail.

Then came the news that El Salvador has mined its first BTC. This is huge as mining can go on till all the BTC has been mined, a good few years, decades (who knows) and the more one can mine, the better.

Yesterday Bukele tweeted that they bought the dip again (420 BTC) and that small country now owns 1140 BTC. Honestly I have no words, this is fantastic!

So far El Salvador has been prepared to act the right way in every dip situation. They have tripled the size of their BTC portfolio, not to mention the growth in value from the first buy.

They were quick every time to let the world know they are fine as they bought another batch that secured their economical position in the world.

This shows they are prepared for every possible situation and they are not gambling, like many have stated in the media.

What Can Countries Learn From Bukele And El Salvador

Just for the record, I know as much as others know from the media, I have no inside information or official balance sheets to be able to analyze how the country is doing economically, but so far I'd say they are doing the right thing.

Managing a country's economics by having its currency as volatile as BTC is very different than fiat. It means high volatility, which can bring a lot of benefits when treated right and losses if not treated right.

How do we make a profit if 1 #BTC= 1 #BTC?
We have a trust fund accounted in USD, but the trust is funded by both USD and BTC.
When the BTC part revalues in comparison to the accounting currency (USD), we are able to withdraw some USD and leave the trust with the same total. source

Most of the countries are printing money with a breakneck speed as the economy is on its way to collapse (or already collapsed) and they think this is the only way to tackle a bad situation.

El Salvador is in a unique position as having the US dollar as national currency doesn't give them the right to print it like crazy any time there's a need to fill some gaps. Another downside that has contributed to BTC adoption was the high costs of cash handling. So with no money printing in El Salvador, they have been forced to look for another solution that can benefit the country long term and they have found one.

Adopting BTC as a legal tender has been possible because the country is small, decision making process is easier and way faster than in larger countries. They have the luxury to focus on what's best for the country instead of fighting for power and wasting time with arguing on nonsense as it happens in many countries, while the ship is sinking.

Having an annual budget in time, adjusting it according to every situation as fast as possible and executing it with accuracy is key in every economy. Having a budget with volatile assets requires knowledge and experience. When you're dealing with crypto, there's no time to debate weeks in parliament or congress, weather to do something or not. You have to act immediately according to the situation, which means you have to have a plan, a good one.

Revising the decision making process may be a good idea for many countries around the world. Simplifying the process, adopting distributed ledger technology for transparency is another thing to consider as this is the safest way to eliminate corruption. It's time to put people's interest before personal interest and start building a new world as the old system has already failed.

We're about to enter the last leg of the bull cycle and El Salvador has a huge opportunity to double, triple, 5x or 10x its wealth and all that in a few months period. Based on what I've seen so far, they are going to come out of this stronger than ever. If they knew how to buy the dip every time there was one, they will know how to sell the top too and buy back when the cycle is over.

For anyone who's skeptical, this is not speculation or gambling, it's called balancing and rebalancing. Those who know economics and accounting, this is done with different currencies all the time, the difference is that those are called fiat. Why can't be done with crypto?

I see El Salvador's example to be followed by small countries that are struggling. Instead of opting for IMF loans that seem like life saving at the beginning and lead to slavery at the end, it's time to work towards obtaining financial independence by building wealth through crypto. It's totally doable even though there are a few obstacles but that's another discussion for another post.

El Salvador was the first, but not the last. Once they prove how using BTC is better than fiat, there's no way back.

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