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Bitcoin bonds have a component of the flagship crypto asset. This has been a much-awaited launch in El Salvador. However, due to critical crypto market situations, the Salvadoran government has delayed the issuance of the BTC bonds.
El Salvador took quite a bold step when it accepted Bitcoin as a legal tender last year. This made El Salvador the first country in the world to do so and brought it on the radar of a vast audience.
While it is an innovative step, it also comes with its risks. Many citizens of the country and other investors and traders in the community have not been in favor of El Salvador’s decision. They believe it to be faulty and risky for the economy of the country, given the volatility associated with the crypto king.
However, the President of El Salvador remains adamant about his plans for the country and BTC. The launch of BTC bonds was also hinted at some time ago but the plans have not been carried through yet.
Let’s find out what has been causing the delay and what are the possible risks of introducing Bitcoin bonds.
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Risks of BTC Bonds and Other Details
This is the second time the government of El Salvador has delayed the launch of Bitcoin bonds. As indicated by the Minister of Finance, the delay is due to the bearish momentum the price of BTC is stuck in.
The flagship crypto asset is currently trading at $30,377 (at the time of writing). The price has been fluctuating quite frequently as seen in the graph by CoinMarketCap below that traces back to a month.
Due to the price movement of the crypto king, the government has been holding back the launch of BTC bonds and has not issued a date yet. However, it is likely to happen sometime towards the end of the year. This will not only help in covering external debts but in the construction of Bitcoin city as well.
The government needs to be extremely careful with Bitcoin bonds as this step can be risky as well. Even though there is a lot of pressure from crypto enthusiasts and investors, El Salvador cannot immediately launch the bonds. The main reason being that it will indebt the country.
The Salvadoran government must wait until the price of the flagship digital currency recovers to some extent and breaks out of this bearish momentum. It will be more beneficial to launch the bonds when BTC is trading around $60k, instead of the current price region.
Despite the price movement noted for Bitcoin, President Nayib Bukele and his advisors seem to rely on the crypto asset. The President has been following his strategy to buy the dip and El Salvador now has over 2,301 BTC.
If you are also interested in buying BTC then make sure you opt for one of the lowest fee Bitcoin exchanges that offer the kind of features you are looking for.
Tips for New Crypto Investors
Bitcoin is quite popular and is being embraced by major and minor entities all around the world. Even though it is supported by a vast variety of cryptocurrency exchanges, it is not suitable for new crypto investors to dive in without proper research or information.
There are several aspects new crypto investors need to know before they start buying BTC or any other crypto asset.
As a new investor, here are some helpful tips you should know.
- Choose one of the largest Bitcoin exchanges that are secure and tick all the right boxes for you in terms of available features.
- Monitor the price movement of the digital currency you want to buy and then invest.
- Start by investing as much as you can afford to lose.
If you are looking to invest in Bitcoin for the first time then you can click on SwissBorg or Kraken (U.S. citizens).
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