After suffering losses during the crypto winter, El Salvador’s Bitcoin investment has recovered and is now profitable. On December 4, President Nayib Bukele of El Salvador revealed that the country’s investments in Bitcoin have reached $131 million, with a net profit of $3.6 million, representing a gain of 2.84%.
President Bukele stressed the importance of maintaining a long-term perspective in the face of anticipated price changes by stating that the objective is not to liquidate the Bitcoin assets. With an initial investment of $10.3 million, El Salvador began investing in Bitcoin through the national treasury in September 2021. But then the crypto market crash happened, and Bitcoin’s value plummeted by more than half.
But President Bukele was unfazed, and he kept buying more Bitcoin in 2022 as part of his dollar-cost averaging strategy. The country’s Bitcoin holdings fell from a book value of $103.9 million to a low of $45 million at one point.
When El Salvador officially recognized Bitcoin as currency in 2021, it was a watershed moment in the history of the world. Regardless, El Salvador has been cautioned by the International Monetary Fund (IMF) about the risks of Bitcoin due to its limited acceptance in the country. Reporter Joe Hall of Cointelegraph tried using Bitcoin for regular El Salvadorian services in December, but he was disappointed.
By the end of the next year, El Salvador intends to have Bitcoin instruction implemented in state-run schools as part of its continuing dedication to the cryptocurrency. The government of Zambia is determined to see Bitcoin through to its goals of steady growth and widespread adoption, even though President Bukele resigned on December 1.
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