A growing number of bitcoiners is hoping to coordinate an unprecedented, community-led bitcoin (BTC) pump tomorrow to coincide with the promulgation of El Salvador’s new law, which will make the coin legal tender alongside the USD.
A number of Reddit and Twitter posts have called on crypto enthusiasts to buy USD 30 worth of bitcoin on September 7, echoing previous online campaigns targeting stocks like GameStop.
Many have claimed that USD 30 was selected as a target amount as the government is also planning to give away this amount to users of the state-operated Chivo wallet, which is due to roll out in time for the adoption drive.
The idea appears to be to drive up adoption by convincing skeptical Salvadorians that BTC is on an upward trajectory, boosting the value of their tokens almost instantaneously.
Much of the momentum appears to have originated among American BTC communities, although some claim the movement may have started in Brazil. Regardless, supporters from as far afield as Romania, Hong Kong, Italy, and the United States stated that they were “in” – and would move to buy BTC using fiat.
One popular post on Reddit suggested coordinating the mass buy to the minute, aiming for a UTC 21:00 start time. This would be 3 P.M. in El Salvador, the precise time when the measure will come into legal force.
But some urged “organizers” to make a last-minute rethink: One Redditor wrote:
“We should do [the pump] after their launch, so that the value of their wallets increase (provided this moves the price at all).”
On Twitter, @ZLOK concurred, writing that the move should “be made after Salvadoreans get USD 30 worth of BTC, not at the same time or before.”
Others suggested moves that would pre-empt a mass buy. One Redditor suggested that “if everyone is buying USD 30 Bitcoin on Tuesday […] let’s buy USD 30 worth on Monday.”
The same Redditor opined that the USD 30 “invested on Monday can easily double bubble on Tuesday when everyone buys in.”
But some responders were dubious about such a strategy, with one writing:
“Don’t pump the price before Tuesday, it diminishes the amount of satoshis that each Salvadorian gets. Better to pump after an entire country’s citizens have skin in the game.”
A sense of excitement was evident among some, with one Redditor writing:
“Can’t wait to be part of bitcoin history.”
At 11:11 UTC, BTC trades at USD 51,815 and is up by almost 4% in a day and 6% in a week.
Community members also reminded others that the law’s architect, President Nayib Bukele has already promised that international tech pioneers will have smooth sailing if they choose to relocate to El Salvador. One wrote that the President had promised “no capital gains tax for bitcoin, since it will be a legal currency and immediate permanent residence for crypto entrepreneurs.”
Also, the Coin Corner CEO Danny Scott suggested making September 7 USD 30 BTC buys an annual event, adding that this was “history in the making.”
Regardless, there is still no shortage of caution among the El Salvador public.
The BTC proponent and Chief Strategy Officer at the Human Rights Foundation Alex Gladstein remarked that upon his own visit to the country “virtually no one” knew “what bitcoin is,” adding that “the government is being highly opaque with its roll-out plans and has provided very little education.”
Meanwhile, the picture is bleaker in the domestic media, much of which is opposed to all things BTC and Bukele-related.
Critics stated that a new electricity law currently being prepared will “benefit bitcoin mining but increase electricity rates” for ordinary folk, reported ElSalvador.com.
Meanwhile, a number of media pundits and members of the international community are concerned that Bukele is taking “pages out of the dictator playbook” in the words of the aforementioned newspaper, by effectively changing the constitution to allow him to stay in power for longer.
Constitutional judges last week ruled that presidents could serve two terms, a fact that would allow Bukele to run for re-election in 2024 – and do away with a rule that forces former presidents to wait 10 years before standing as a candidate in presidential elections.
ElSlavador.com noted that former members of the Constitutional Chamber of the Supreme Court of Justice, which could move to rubber-stamp Bukele’s bid for the right to extend his leadership of the country, had spoken out.
The media outlet quoted a former magistrate who served in the Constitutional Chamber, René Hernández Valiente, as explaining that the court “can only interpret the Constitution,” but “cannot make changes to it.”
Reuters reported that the United States embassy in El Salvador had “slammed the judges’ ruling as unconstitutional and a blow to bilateral ties.”
– Surveys: Most of El Salvador Public Is Opposed to Bitcoin Adoption Law
– El Salvador Brings New Global Puzzle – What Is Bitcoin & How To Tax It?
– IMF Says Making Bitcoin a National Currency is an ‘Inadvisable Shortcut’
– El Salvador Will Be a Serious Test for Bitcoin’s Layer-2 Networks