The President of El Salvador announced that the country has seen gains of over $300 million from its investment in Bitcoin. These gains were achieved as the price of Bitcoin surpassed $100,000.
After Bitcoin reached a value of over $100,000 for the first time, Salvadoran President Nayib Bukele pointed out the potential benefits that the country could have from its investments in the cryptocurrency on social media.
Bitcoin (BTC) hit $100,000 on December 5, leading to joy among those involved in the cryptocurrency community. A crypto account called Autism Capital requested Bukele to reveal El Salvador's Bitcoin holdings to prove critics wrong. In response, Bukele shared the country's BTC portfolio on social media.
Origin: Nayib Bukele
According to the most recent update from Bukele, El Salvador has invested close to $270 million in Bitcoin since first accepting the cryptocurrency. The records indicate that no Bitcoin has been sold, and the total profits from the investment now surpass $333 million.
In a historic move, El Salvador became the first country to officially recognize Bitcoin as a legal form of currency on September 7, 2021. This means that Bitcoin can now be used for financial transactions within the country. Additionally, the government of El Salvador made its first purchase of 200 BTC on September 6.
Following this, El Salvador has continued to purchase Bitcoin. On November 17, 2022, Bukele revealed a dollar-cost averaging (DCA) plan, where they will buy one Bitcoin every day.
According to Nayib Tracker, a website that monitors El Salvador's Bitcoin investments, the country currently owns 6,180 BTC. The tracker calculates that the average purchase price was $44,739.88 per Bitcoin, resulting in a 122% increase in value based on the current market prices.
In addition to the profits from BTC, El Salvador has experienced additional advantages after embracing Bitcoin. The country's choice to incorporate Bitcoin has also had a positive impact on tourism.
US Bitcoin ETFs currently have more Bitcoin in their possession than even Satoshi Nakamoto, the mysterious creator of
The International Monetary Fund (IMF) has been advising El Salvador to change its approach to Bitcoin, even though the country has seen some positive outcomes with the cryptocurrency.
The IMF requested El Salvador on January 25, 2022 to reconsider its decision to accept BTC as legal tender due to concerns about financial stability, even though they recognized the benefits it could bring in terms of financial inclusion.
The International Monetary Fund (IMF) recently advised El Salvador to reconsider its Bitcoin policies. Julie Kozack, the IMF's communications director, suggested that El Salvador should revise its Bitcoin Law and reduce the government's involvement with Bitcoin.
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