President Bukele Announces Positive Returns
El Salvador's cumulative Bitcoin investments have turned profitable, according to President Nayib Bukele. The country currently holds $131 million in Bitcoin with a net profit of $3.6 million, resulting in a total gain of 2.84%. Bukele made it clear that the intention is not to sell, as they are aware of Bitcoin's price fluctuations and have a long-term strategy in place.
Background: El Salvador's Bitcoin Journey
In September 2021, El Salvador made headlines by becoming the first country to adopt Bitcoin as legal tender. The government purchased BTC with an initial investment of $10.3 million. However, the subsequent bear market caused the value of Bitcoin to plummet by over 50%, resulting in a significant decrease in the country's Bitcoin portfolio.
Continued Investment and Dollar-Cost Averaging
Despite the market downturn, President Bukele remained committed to Bitcoin. He continued to invest in Bitcoin throughout 2022, practicing dollar-cost averaging to mitigate the impact of price fluctuations. At one point, the country's Bitcoin portfolio dropped to $45 million from a book value of $103.9 million.
Bitcoin Adoption and Future Plans
El Salvador's adoption of Bitcoin as legal tender has garnered attention worldwide. However, the International Monetary Fund has stated that the risks associated with Bitcoin have not materialized due to limited adoption in the country. In an effort to further integrate Bitcoin, El Salvador plans to introduce Bitcoin education in state-run schools by next year.
Conclusion: El Salvador's Bitcoin Investment Success
Despite initial challenges and criticism, El Salvador's Bitcoin investments have proven to be profitable. President Bukele's commitment to Bitcoin has resulted in a positive return, demonstrating the country's dedication to embracing digital currencies. As El Salvador continues to navigate the world of cryptocurrencies, its Bitcoin journey serves as an example for other nations considering similar initiatives.
Did you miss our previous article...