El Salvador’s President Nayib Bukele recently defended the country’s adoption of Bitcoin as legal tender on Twitter, asserting that if El Salvador had chosen to sell its Bitcoin holdings at the current market rate, it could have realised a profit of approximately 40%. Despite this potential profit, Bukele reiterated the country’s decision not to sell its cryptocurrency, emphasising a long-term investment perspective, stating firmly, “We won’t sell, of course.”
When #Bitcoin’s market price was low, they wrote literally thousands of articles about our supposed losses.
Now that #Bitcoin’s market price is way up, if we were to sell, we would make a profit of over 40% (just from the market purchases), and our main source of BTC is now our…
— Nayib Bukele (@nayibbukele) February 28, 2024
This discussion about El Salvador’s Bitcoin holdings and their value coincides with the cryptocurrency’s price nearing 12% of its all-time high, experiencing a nearly 10% surge in a single 24-hour period. El Salvador’s Bitcoin investments are tracked through the Nayib Bukele Portfolio Tracker, an online tool monitoring the country’s Bitcoin purchases and their cost basis, as announced by Bukele. According to this tracker, El Salvador currently holds 2,848 Bitcoin, estimated to be valued at approximately $173 million at current market prices.
El Salvador’s decision to embrace Bitcoin as legal tender has faced criticism from the international community and financial analysts, including warnings from the International Monetary Fund (IMF) regarding potential economic risks due to cryptocurrency volatility. Despite such concerns and prior criticism amid a bear market in 2022, El Salvador has continued to acquire Bitcoin, committing to daily purchases of 1 BTC following the FTX exchange collapse.
This steadfast commitment to Bitcoin reflects broader discussions about the role of cryptocurrencies in national economies and their potential to disrupt traditional financial systems. Bukele’s recent remarks also suggest a sense of validation as Bitcoin’s value rises, challenging predictions of failure for El Salvador’s cryptocurrency strategy.
Beyond cryptocurrency, Bukele’s leadership enjoys significant popularity among Salvadorans, as evidenced by his recent re-election with 85% of the vote. His administration has been credited with notable achievements in reducing gang violence and enhancing public safety, with Bukele attributing part of this success to innovative financial policies such as the adoption of Bitcoin.
El Salvador’s approach mirrors that of companies like MicroStrategy, which have made substantial investments in Bitcoin and have seen significant returns. Recent reports indicate that MicroStrategy acquired an additional 3,000 bitcoins for $155.4 million, bringing the total value of its BTC holdings to $10.28 billion.