El Salvador Makes Over $300 Million in Bitcoin Profits
Date: 2024-12-09 Author: Oliver Abernathy Categories: IN WORLD
El Salvadoran President Nayib Bukele shared the country’s Bitcoin investment achievements on social media, highlighting the unrealized profits that have accrued from the cryptocurrency’s rise in value. This comes after Bitcoin reached $100,000 for the first time in history on December 5, sparking a wave of enthusiasm in the crypto community.
On the X platform (formerly Twitter), Bukele responded to a request from the Autism Capital account, which asked the president to show El Salvador’s Bitcoin portfolio. In his response, Bukele revealed the country’s Bitcoin purchases, stating that the country has invested around $270 million in the cryptocurrency since accepting its first purchase. Not a single coin was sold, and the current unrealized profit exceeds $333 million.
El Salvador became the first country in the world to recognize Bitcoin as legal tender. The Bitcoin law came into effect on September 7, 2021, allowing the cryptocurrency to be used for financial transactions on par with the US dollar. On the same day, the government purchased its first 200 BTC.
Since then, the country has continued to buy Bitcoin, following a price averaging strategy. In November 2022, Bukele announced that the country would purchase one Bitcoin daily.
According to data from the Nayib Tracker platform, El Salvador currently holds 6,180 BTC. The average purchase price is estimated at $44,739.88 per coin. At the current market rate, the country has seen an increase in investment of 122%.
In addition to financial gains, the adoption of Bitcoin has contributed to the development of tourism in the country, which highlights the additional benefits of cryptocurrency policy.
Despite El Salvador’s success, the International Monetary Fund (IMF) has repeatedly called on the country to reconsider its Bitcoin policy. In January 2022, the IMF recommended deprecating BTC as legal tender, citing potential risks to financial stability. However, it noted that the policy could promote financial inclusion.
In October 2023, the IMF again called on El Salvador to reduce its use of Bitcoin by limiting its impact on the public sector. IMF spokesperson Julie Kozak said the country should narrow the scope of its Bitcoin law to minimize potential risks.
