As Bitcoin crossed the magical $100,000 level, El Salvador’s President Nayib Bukele didn’t miss the chance to celebrate their bold move that’s drawn both praise and criticism.
How El Salvador Invested in Bitcoin
Three years ago, El Salvador started buying Bitcoin, putting in around $270 million. Today, the value of that investment has grown by about $330 million—at least on paper. That means they haven’t sold the Bitcoin to lock in the profit, but if they did, the numbers show a substantial gain.
When we talk about unrealized profit, it simply means that the value of what they hold has increased, but it hasn’t been cashed out yet. Think of it like holding a winning lottery ticket that you haven’t claimed.
The Road Wasn’t Easy
El Salvador’s decision to invest heavily in Bitcoin wasn’t met with applause from everyone. Both international organizations, like the International Monetary Fund (IMF), and voices within the country criticized the plan. The IMF argued that using Bitcoin this way could put El Salvador’s financial stability at risk.
Despite the warnings, Bukele, who featured on the cover of Time Magazine in August of this year, stayed the course. The country even adopted Bitcoin as legal tender, allowing businesses and citizens to use it alongside the U.S. dollar. This decision sparked heated debates, but Bukele’s vision of Bitcoin as a long-term game hasn’t wavered.
https://t.co/QVvFbQ7woa pic.twitter.com/WiOAYg6Ztx
— Nayib Bukele (@nayibbukele) December 5, 2024
Keeping the Bitcoin Strategy Alive
Instead of backing down, El Salvador doubled down. The government continues to buy one Bitcoin every day, a strategy Bukele believes could pay off big in the future. He has openly shared his belief that Bitcoin could one day be “priceless” when compared to traditional currencies.
Buying Bitcoin steadily, regardless of price, is often called dollar-cost averaging. It’s a method many people use to invest because it spreads the cost over time and avoids the risk of buying everything when prices are high.
At time of writing, El Salvador holds 5,958.77 Bitcoin, which at current prices are worth $592,730,432 according to the country’s Bitcoin Office.
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