Summary:
El Salvador became the first country to adopt Bitcoin as a legal tender currency in 2021. President Nayib Bukele announced several Bitcoin purchases on Twitter, totaling 2,381 BTC. However, there is no evidence of these purchases, and their accuracy is assumed for this report. If El Salvador had bought Ethereum instead of Bitcoin, they would have incurred $15 million more in losses. The country’s current Bitcoin investment has decreased by 32%. Ethereum purchases would have resulted in a 46.14% loss. Even if El Salvador had staked all their Ethereum, the returns would still be worse than holding Bitcoin. The president also promised to buy 1 BTC per day, but there have been no updates since the announcement.
Key Points:
– El Salvador made history by adopting Bitcoin as legal tender.
– President Nayib Bukele announced Bitcoin purchases on Twitter, but there is no evidence of these purchases.
– If El Salvador had bought Ethereum instead of Bitcoin, they would have incurred $15 million more in losses.
– The country’s current Bitcoin investment has decreased by 32%.
– Even if El Salvador had staked all their Ethereum, the returns would still be worse than holding Bitcoin.
Hot Take:
El Salvador’s decision to adopt Bitcoin as legal tender has raised questions about the country’s investment choices. While the accuracy of the announced Bitcoin purchases is uncertain, it appears that Ethereum would have resulted in even greater losses. The volatility of cryptocurrencies makes it challenging to predict the best investment decisions. As El Salvador continues its crypto journey, it will be interesting to see how their investment strategy evolves.
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