cryptonews.net
El Salvador’s investment in Bitcoin is inching closer to breaking even, thanks to the recent surge in the cryptocurrency’s value. President Nayib Bukele proudly declared that the country’s Bitcoin portfolio is now “in the black,” signaling a potential turnaround for a strategy that has faced international scrutiny.
https://x.com/nayibbukele/status/1731653743668572498?s=20
Bitcoin Surges Past $40K
The recent price rally pushed Bitcoin to a new yearly high of nearly $42,000, prompting Bukele to share the good news on social media. According to a screenshot from nayibtracker.com, a website monitoring El Salvador’s Bitcoin holdings, the country’s potential profit stands at an impressive $3,620,277 if they sell their holdings now.
This positive development vindicates El Salvador’s unconventional decision to adopt Bitcoin as a legal tender in September 2021. Bukele initiated the strategy by purchasing the first 200 coins and has since announced additional acquisitions, including the commencement of daily Bitcoin purchases in November 2022.
El Salvador enforced businesses to accept Bitcoin, introducing the “Chivo” digital wallet and establishing ATMs and consultation centers nationwide. The government offered incentives, including a $30 Bitcoin bonus, to encourage wallet downloads.
President Nayib Bukele’s bold move aimed to include the majority of Salvadorans who lack traditional bank accounts, presenting digital currency as a tool to enhance participation in the formal economy. However, widespread skepticism persists among citizens and the traditional banking sector, expressing concerns over Bitcoin’s volatility and potential adverse effects on the nation’s fragile economy.
International financial authorities, including the World Bank and the International Monetary Fund, had raised legal concerns about El Salvador’s adoption of Bitcoin. Critics argued that embracing a currency designed to undermine monetary authority could expose the nation to money laundering risks.
The data reveals that El Salvador currently holds 2,762 bitcoins, valued at approximately $115 million at an average purchase price of $42,433.42. To break even, the Bitcoin price needs to exceed $42,500 per BTC, a target that seems achievable given the recent market trends.
El Salvador Not Selling its Bitcoins Soon
Despite criticism and skepticism, Bukele remains steadfast in retaining El Salvador’s Bitcoin holdings. The president emphasized that selling the cryptocurrency was never the goal, and the long-term strategy remains unaffected by potential future price volatility.
The Bitcoin Law, officially recognizing Bitcoin as legal money in 2021, has attracted attention from global financial institutions. Institutions like Santander have acknowledged the law’s positive impact, attributing it to increased regional investment and tourism.
While El Salvador’s Bitcoin portfolio has weathered criticism, Bukele seized the opportunity to call out detractors, urging them to acknowledge the success of the country’s investment strategy. As Bitcoin continues to make headlines with its remarkable surge, El Salvador’s commitment to its cryptocurrency holdings remains resolute, setting the stage for a potentially lucrative future amid ongoing market dynamics.