El Salvador's Bitcoin Investments Yield $12.6 Million Profit
Date: 2024-01-10 Author: Dima Zakharov Categories: IN WORLD
El Salvador, under the leadership of President Nayib Bukele, embarked on a journey of Bitcoin investment in September 2021. Over a two-week period, the government acquired 700 BTC at prices ranging from $47,250 to $52,670 per coin. Their most recent purchase occurred in November 2022 when Bitcoin was valued at $27,780, resulting in an average acquisition cost of $42,440 for El Salvador.
At the end of the previous year, Nayib Bukele criticized international journalists for their portrayal of El Salvador's investments. He pointed out that for nearly two years, they had been reporting on incorrect investment decisions and losses, yet when the country turned a profit, none of the publications acknowledged it. Bukele labeled the media as biased and unworthy of trust.
The price of Bitcoin has surged by 75% since October 2023, driven by expectations of the imminent approval of a Bitcoin spot ETF in the United States. The Securities and Exchange Commission (SEC) is expected to make a final decision on January 10, 2024.
In 2021, El Salvador became the first country to adopt Bitcoin as legal tender, and analysts speculate that Argentina may follow suit after the appointment of President Javier Milei.
Nayib Bukele assumed the presidency of El Salvador in 2019 and is a member of the "Nuevas Ideas" (New Ideas) party, which he himself founded a year earlier. The politician gained widespread popularity in the country by promising to combat corruption and violence.
The acceptance of Bitcoin as an official currency represents one of the key reforms undertaken by Bukele's administration. He believes that the use of BTC will enhance financial stability, reduce transfer fees, attract investments, and unlock technological potential.
