The President of El Salvador announced that the country has made a profit of over $300 million on its investment in Bitcoin. This profit was realized as the price of Bitcoin surpassed the $100,000 mark.
The President of El Salvador, Nayib Bukele, pointed out the potential benefits that the country could see from its investments in Bitcoin on social media when the value of the cryptocurrency reached over $100,000 for the first time.
Bitcoin (BTC) hit a milestone on Dec. 5 by reaching $100,000, causing excitement among those involved in the cryptocurrency world. On that day, Autism Capital, a crypto account on a social media platform, requested for Bukele to reveal the Bitcoin assets owned by El Salvador as a way to silence critics. In response, Bukele disclosed the country's BTC holdings on the same platform.
Origin: Nayib Bukele
In his most recent update, Bukele revealed that El Salvador has invested close to $270 million in Bitcoin since first adopting the cryptocurrency. The investment portfolio indicates that no Bitcoin has been sold, and the current unrealized profits have surpassed $333 million.
The nation of El Salvador made history by becoming the first country to accept Bitcoin as a form of legal payment. This decision was finalized on September 7, 2021, with the implementation of the Bitcoin Law, which officially recognized BTC as a valid currency for financial transactions in the country. Additionally, on September 6, the government made its initial purchase of 200 BTC.
After that, El Salvador has been actively obtaining Bitcoin. On November 17, 2022, Bukele revealed a dollar-cost averaging (DCA) plan, promising to purchase 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 average purchase price per Bitcoin is estimated to be $44,739.88, resulting in 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 embracing Bitcoin. The country's choice to adopt Bitcoin has also led to an increase in tourism.
US Bitcoin ETFs currently have a larger amount of Bitcoin in their holdings compared to the creator of Bitcoin,
The IMF has been advising El Salvador to reconsider its use of Bitcoin, even though the country has seen some success with the cryptocurrency.
The IMF requested on Jan. 25, 2022, that El Salvador cease considering BTC as legal tender due to concerns about financial stability, even though they acknowledged the benefits it could bring to financial inclusion.
The International Monetary Fund (IMF) recently advised El Salvador to reconsider its Bitcoin policies. The IMF's spokesperson, Julie Kozack, suggested that El Salvador should make adjustments to the country's Bitcoin Law and reduce the public sector's involvement with Bitcoin.
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