The President of El Salvador has announced that the country has made over $300 million in unrealized gains from its Bitcoin investments. This profit was made as the price of Bitcoin surpassed $100,000.
The President of El Salvador, Nayib Bukele, pointed out the benefits that the country has not yet received from its investments in Bitcoin on social media. This happened after the cryptocurrency reached over $100,000 for the first time.
Bitcoin (BTC) hit a milestone on December 5, reaching $100,000 for the first time. This news was met with excitement among those involved in the cryptocurrency community. Autism Capital, a crypto-focused account, requested that Bukele, the leader of El Salvador, share the country's Bitcoin holdings in order to show their success to critics. Bukele responded to this request by publicly disclosing El Salvador's BTC portfolio.
Origin: Nayib Bukele
The most recent update from Bukele indicates that the country has invested almost $270 million in Bitcoin since first adopting the cryptocurrency. The portfolio reveals that no Bitcoin has been sold, and the unrealized profits now total over $333 million.
El nation of El Salvador made history by becoming the first country to approve Bitcoin as a form of legal payment. This decision was made official on September 7, 2021, when the Bitcoin Law came into effect, allowing Bitcoin to be used for financial transactions within the country. Additionally, on September 6, the government acquired its initial 200 BTC.
Following that, El Salvador has been consistently purchasing Bitcoin. On November 17, 2022, Bukele revealed a plan to regularly buy one Bitcoin each day using a dollar-cost averaging method.
According to Nayib Tracker, a platform that monitors Bitcoin investments in the country, El Salvador currently owns 6,180 BTC. The platform calculates that the average price at which the Bitcoin was purchased is $44,739.88 per coin. This means that the country has seen a 122% increase in value based on the current market prices.
In addition to the profits from BTC, El Salvador has experienced other positive outcomes after accepting Bitcoin. The decision to adopt Bitcoin has also led to an increase in tourism in the country.
Update: Bitcoin exchange-traded funds in the United States currently have a larger holding of BTC compared to what
The International Monetary Fund (IMF) has been advising El Salvador to reconsider its Bitcoin policies, despite the country's reported success with the digital currency.
The IMF requested that El Salvador stop using BTC as legal tender on Jan. 25, 2022, due to concerns about financial stability, even though they acknowledged the benefits of potentially increasing 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 to be more focused and reduce the public sector's involvement with Bitcoin.
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