On October 15, the day bitcoin’s price surpassed the $60K per unit handle, Salvadoran President Nayib Bukele mocked Johns Hopkins University professor of applied economics Steve Hanke for his recent statements. At the time, the well-known economist warned that El Salvador faces “financial ruin” with “Bukele at the helm,” after El Salvador’s president purchased bitcoin at a low price.
Steve Hanke Said 3 Weeks Ago, ‘With Bukele at the Helm,’ His Country Faces ‘Financial Ruin,’ Bukele Reacts to Bitcoin Price Increase by Saying, ‘You Were Saying?’
When El Salvador adopted bitcoin (BTC) in the first week of September, on the first day the law was enacted, the fiat value of BTC plummeted dramatically. At the time, Salvadoran President Nayib Bukele told his Twitter followers that his country was “buying the dip,” adding 150 BTC to its stockpile. Meanwhile, Steve Hanke, a Johns Hopkins University professor of applied economics, criticized the Salvadoran president and tagged him in a Twitter post on September 23.
“Nayib Bukele is once again playing fast and loose with El Salvador’s tax dollars,” Hanke said. “After bitcoin prices plummeted to a 6-week low, Bukele proudly stated, ‘We just bought the dip.'” ELSL faces financial ruin under Bukele’s leadership.”
Meanwhile, the leading crypto asset bitcoin (BTC) experienced a drop in price in September, but as the month progressed into October, BTC’s price skyrocketed. On October 15, Bukele decided to retweet Hanke’s statement from September 23 and add his own comment. “What were you saying?” Bukele mockingly inquired of the well-known economist. During the last 24 hours, BTC has been hovering above the $60K price range.
The next day, Hanke responded, saying, “Yes, I was saying ‘financial ruin.'” Have you noticed the drop in the value of El Salvador’s dollar-denominated bonds since September 7th?” Hanke inquired of Bukele. “El Salvador’s bonds due in 2023, 2025, and 2029 are ‘distressed,'” Hanke added.
‘Private, Digital Money Is Nothing New,’ says Hanke. and asserts that “the Case for Crypto as a Driver of Innovation Is Thin.”
Erik Voorhees, the founder of Shapeshift, also responded to Hanke’s tweet on Saturday with an animated GIF of goalposts moving. “Hanke sounds like [the] people who were afraid of electricity in the nineteenth century,” another person said. Hanke has repeatedly stated that he does not like bitcoin (BTC), and he has warned about El Salvador’s bitcoin adoption in June.
Hanke said at the time that he didn’t think it was a good idea for the Latin American country to use bitcoin as legal tender, and that the decision could “completely collapse the economy.” Despite his reservations about bitcoin, the economist has previously stated that central banks exacerbate wealth loss and that the world could use fewer of them. Hanke, on the other hand, supports the establishment of currency boards, which essentially use monetary authority to maintain a fixed exchange rate with foreign currencies.
Hanke has recently stated that “private, digital money is nothing new.” For decades, most money has been produced privately and in digital form,” Hanke claims. Hanke stated in an opinion editorial published by the National Review that “the case for crypto as a driver of innovation is thin.”