El Salvador’s Bitcoin Investments are in Profit, Says President Bukele
El Salvador’s President Nayib Bukele announced on Twitter that the recent rally in Bitcoin’s price to over $42,000 has pushed the country’s BTC investments into profit. At the current market price, El Salvador would make a profit of around $3.6 million if it were to sell its holdings. However, Bukele emphasized that the country has no intention of selling, as that was never their objective. He acknowledged that Bitcoin’s price will continue to fluctuate but stated that it doesn’t affect their long-term strategy.
Bukele also used his tweet to criticize media critics who previously ridiculed the country’s supposed losses. He demanded that they report this new reality with the same intensity they reported the previous one.
Bitcoin and El Salvador
In June 2021, President Bukele announced that Bitcoin would become legal tender in El Salvador, and the Bitcoin Law came into effect in September. Since then, the country has been purchasing Bitcoin for its reserves as a hedge against inflation and to reduce reliance on U.S. dollar remittances. In November 2022, El Salvador increased its rate of purchases to one Bitcoin per day.
The decision to embrace BTC has faced criticism both domestically and internationally. However, Bukele remains confident in his choice and has hired Saifedean Ammous, author of “The Bitcoin Standard,” as an economic adviser. Additionally, El Salvador’s bonds have performed well, providing investors with significant returns.
While it is challenging to determine the exact amount of Bitcoin purchased by El Salvador for its reserves, tracking websites like NayibTracker report that the country’s Bitcoin buys have slipped back into negative territory since Bukele’s celebratory announcement.
Hot Take: El Salvador’s Bitcoin Investment Turns Profitable
The recent surge in Bitcoin’s price has brought good news for El Salvador, as the country’s BTC investments have turned profitable. President Bukele proudly shared on Twitter that at the current market price, El Salvador would make a profit of approximately $3.6 million if they were to sell their holdings. However, Bukele clarified that the country has no plans to sell and remains committed to its long-term strategy.
Bukele took the opportunity to criticize media critics who previously ridiculed El Salvador’s Bitcoin investments. He called for them to report the new reality with the same intensity they reported the supposed losses. Despite facing criticism, El Salvador’s decision to embrace Bitcoin continues, with the country using it as legal tender and purchasing it for its reserves.
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