May 29, 2024
El Salvador's Bitcoin Holdings Turn Profitable
Bitcoin News

El Salvador’s Bitcoin Holdings Turn Profitable

Salvadoran President Nayib Bukele recently disclosed significant details about El Salvador’s foray into Bitcoin, revealing that the country’s cumulative investments in the cryptocurrency have reached an impressive $131 million. This financial venture has proven fruitful, generating a net profit of $3.6 million and a noteworthy total gain of 2.84%. Bukele, in emphasizing a resolute long-term strategy, stated unequivocally, We have no intention of selling.

Despite the recent political development of Bukele resigning from the presidency on December 1 to channel his focus into the 2024 reelection campaign, El Salvador encountered challenges in its Bitcoin journey. The initial investment of $10.3 million in September 2021 was followed by a stark decline of over 50% in Bitcoin’s value amid a bear market. Undeterred, Bukele persisted in adopting a dollar-cost averaging approach, resulting in multiple purchases throughout 2022. At a certain juncture, the country’s Bitcoin portfolio saw a dip to $45 million from its initial book value of $103.9 million.

El Salvador made global headlines in 2021 by becoming the first nation to embrace Bitcoin as legal tender. The International Monetary Fund has since raised concerns about potential risks associated with Bitcoin for El Salvador, emphasizing limited adoption within the country. In response to these dynamics, Bukele has underscored its steadfast commitment to its strategic vision.

Looking ahead, El Salvador aims to bolster its engagement with cryptocurrency further. Plans include the introduction of Bitcoin education in state-run schools by the upcoming year. This multifaceted approach underscores El Salvador’s determination to navigate the volatile cryptocurrency landscape while simultaneously integrating it into the fabric of its national educational system.

Image by Freepik

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