You can check the website statistics yourself or request them from us at [email protected]
On this platform, only organic high-quality traffic
Bitcoin
$ 30,725

Bitcoin as Legal Tender: El Salvador’s Risky Financial Maneuver Struggles to Pay Off

After more than two years of adopting Bitcoin (BTC) as an official currency, El Salvador’s ambitious venture into the crypto realm is facing challenges. This struggle extends to the government’s own BTC investments, which seem to be in a less favorable position due to untimely purchases by the president.

As per the Nayib Bukele Portfolio Tracker website, the government currently possesses 3,124 BTC valued at $118.3 million. This reflects a decrease of 6.44%, equivalent to $8.1 million, from the initial investment. The exact BTC holdings of El Salvador remain somewhat elusive, given the discreet stance of the bank managing the government’s Bitcoin funds on this matter.

Nevertheless, the website provides an approximate calculation based on numerous public tweets from El Salvador’s pro-Bitcoin president, Nayib Bukele. These tweets contain precise amounts and purchase prices for the country’s BTC investments.

The government initiated its BTC acquisitions, amounting to 550 BTC, between September 6 and 7, coinciding with the adoption of Bitcoin as legal tender. Acquired at an average price of approximately $52,000, Bitcoin’s value swiftly declined to $43,000 within a matter of days.

Although the value later surged to as high as $69,000 by November 2021, the president found himself in a challenging position as he made several purchases during subsequent months. For instance, between October and November 2021, Bukele acquired 520 BTC in two transactions, each at around $59,000, under the belief that he was strategically “buying the dip” on each occasion.

Small, Consistent Investments

His announcements of Bitcoin purchases gradually diminished in size and frequency until November 2022. Following Bitcoin’s sharp decline to under $17,000 after FTX’s collapse, Bukele committed to acquiring one Bitcoin daily, a pledge he maintained thereafter.

Assuming he adhered to his commitment, the nation has procured 374 BTC since that period. With Bitcoin’s appreciation of 128% since the previous year, El Salvador’s overall investment during this time has seen a 45% increase, significantly offsetting earlier losses.

The unconventional leader once asserted to have executed digital currency trades using public funds from his mobile phone, at times in seemingly unconventional circumstances, like being “naked” or “while in the toilet.”

In contrast to El Salvador, MicroStrategy’s BTC ownership is transparent, as evidenced by its quarterly financial reports. MicroStrategy boasts substantial gains, with profits amounting to $1.28 billion on its extensive stack of 158,400 BTC, now valued at over $6 billion.

Related Posts

Leave a Reply

Confirm now and stay with our news

What we write about

I want to save money. Will cryptocurrency work?

Cryptocurrency is essentially virtual money that operates in a decentralized manner, not through a bank but directly on multiple independent computers.

Every cryptocurrency has two main components: the units of digital exchange called “coins” and the network within which the exchange takes place. These units can be transferred between wallets and exchanged on exchanges. The networks in which these coins exist are called blockchains, which translates to “chains of blocks.”

Latest Articles

S&P Global Ratings joins Singapore MAS’s Project Guardian
28.06.2024By
Boden Memecoin Crashes After US President Biden’s Poor Debate Performance
28.06.2024By
Steno Research Expects $15-20B Inflows into Ether Spot ETFs, Predicts $6,500 Price Target
28.06.2024By

Latest news

S&P Global Ratings joins Singapore MAS’s Project Guardian
28.06.2024
Boden Memecoin Crashes After US President Biden’s Poor Debate Performance
28.06.2024
Steno Research Expects $15-20B Inflows into Ether Spot ETFs, Predicts $6,500 Price Target
28.06.2024
Bitcoin Mining Firm CleanSpark Acquires GRIID in $155M Stock Deal
28.06.2024
Elastos Partners With BEVM to Launch Bitcoin P2P Loans, Targeting $1.3T in Dormant Value
28.06.2024
Coinbase Files Lawsuits Against SEC, FDIC Over FOIA Request
27.06.2024
UK Watchdog Boosts Crypto Division to 100 Staff Members
27.06.2024
Hong Kong Government Explores DeFi and Metaverse to Boost Fintech Dominance
27.06.2024
Spot Ether ETFs May Receive US Approval by July 4: Report
27.06.2024
Bitcoin ETFs See Inflows for Second Consecutive Day as BTC Holds Steady at $60K
27.06.2024