El Salvador's $131M Bitcoin Investments Yield $3.6M Profit amidst Bukele's Resignation
Summary:
El Salvador reports total Bitcoin (BTC) investments of $131 million with a net profit of $3.6 million, marking a 2.84% gain, according to President Nayib Bukele. Despite criticism and Bitcoin's market fluctuations, Bukele insisted on the strategy of dollar-cost-averaging throughout 2022. Bukele resigned as president on Dec. 1 to focus on his 2024 reelection campaign. Notably, El Salvador became the first country to legalize Bitcoin in 2021 and plans to implement Bitcoin education in state-run schools by next year.
As reported by the President of El Salvador, Nayib Bukele, on his Dec. 4 update, the nation boasts a $131 million total investment in Bitcoin (BTC). These investments have yielded a positive return of $3.6 million, signifying a total profit of around 2.84%. Bukele clarified that it's not their agenda to sell, as they look at the long-term benefits regardless of the volatile nature of BTC's price in the future. Bukele also pointed out how their Bitcoin investments have now turned profitable despite numerous reports criticizing the presumed losses based on BTC's market value during initial investments.
On the first of December, Bukele quit his presidential post after the legislative assembly approved his decision, allowing him to focus on his 2024 reelection campaign. His tenure saw El Salvador investing in BTC through its national treasury, beginning with a $10.3 million in September 2021. However, the value of Bitcoin plunged by over 50% soon, during the bear market phase. Despite such a setback, Bukele consistently pursued the strategy of dollar-cost-averaging in Bitcoin investments throughout 2022. This saw the country's Bitcoin portfolio value dropping to as low as $45 million from its initial worth of $103.9 million.
El Salvador made history in 2021 by becoming the first country to legalize Bitcoin as an official payment method. Despite warnings from the International Monetary Fund about potential risks, it's noted that the threats to the nation due to Bitcoin have been minimal due to its limited acceptance within the country. Cointelegraph reporter, Joe Hall, had an unsatisfactory experience when he tried to use Bitcoin for daily services during his visit to El Salvador last December. On a brighter note, the country plans to implement Bitcoin education in government-owned schools by the coming year.
Published At
12/4/2023 2:58:26 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.