El Salvador’s Bitcoin Investment in the Green
The price of Bitcoin (BTC) has risen above El Salvador’s average purchase price, indicating a profit for the Central American nation. President Nayib Bukele announced on Twitter that the country’s BTC investments are now “in the black.” This comes after numerous articles speculated about losses incurred by El Salvador’s BTC investments. Bukele clarified that these calculations were based on previous market prices. According to Bukele, at the current market price, El Salvador has made a profit of $3.6 million. The nation currently holds around $130 million worth of BTC, with an average purchase price of $40,479 over the past two years.
No Intention of Selling BTC Holdings
Bukele emphasized that El Salvador has no plans to sell its BTC holdings and that their long-term strategy remains unaffected by market fluctuations. He has been a strong advocate for Bitcoin and introduced it as legal tender in the country. Bukele believes that Bitcoin provides an opportunity for countries like El Salvador to escape the inflationary effects of the US dollar. With the potential for a continued Bitcoin bull run, other South American nations may consider making similar investments. For example, Argentina’s President-elect Javier Milei has expressed interest in Bitcoin as his country faces high inflation rates.
Hot Take: El Salvador’s Successful Bitcoin Strategy
El Salvador’s decision to invest in Bitcoin appears to have paid off, with the nation now experiencing a profit of $3.6 million. President Nayib Bukele’s announcement that their BTC investments are “in the black” highlights the success of their strategy. Despite previous speculation about losses, El Salvador’s average purchase price has allowed them to benefit from rising Bitcoin prices. Bukele reaffirmed their commitment to holding onto their BTC holdings, recognizing that market fluctuations are to be expected. This move has positioned El Salvador as a pioneer in cryptocurrency adoption and may inspire other countries to consider similar investments in the future.
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