El Salvador is now reaping significant profits from its Bitcoin investment following the recent rise in the value of the cryptocurrency. After taking a bold step by adopting Bitcoin as legal tender, strategic Bitcoin investments in the Central American country have now translated into multi-million dollar gains.
Betting on Bitcoin in El Salvador pays off
Over the past few years, El Salvadorone of the smallest countries in Central America, is growing steadily Bitcoin wallet. Between September 2021 and January 2022, the government of El Salvador purchased approximately $85.5 million worth of Bitcoin. The value of investment in the country witnessed a significant decline after the crisis Bitcoin price It began to decline in November 2021. At that time, El Salvador lost about $22 million from the unexpected decline.
Despite these losses, the government of El Salvador remained undeterred and continued to purchase Bitcoin during the decline. In 2022, Central American nation It purchased hundreds of bitcoins, bringing El Salvador’s current total bitcoin holdings to 2,798 bitcoins worth $131.3 million.
the BTC investment in the country It was acquired at an average purchase cost of US$42,440, making it a potential gainer as Bitcoin is expected to soar to new heights during the bull run of 2024. Despite facing criticism for its support of Bitcoin internationally, the country is seeing… Now earnings are up, totaling $12.6 million.
At the time of writing, Bitcoin is priced at $45,883 according to CoinMarketCap. Over the past year, the cryptocurrency has seen a notable price increase of 166.78%. With increasing anticipation surrounding the possible approval of… Bitcoin ETFsthe cryptocurrency is expected to grow further.
BTC price falls to $45,500 | Source: BTCUSD On Tradingview.com
El Salvador bets big on Bitcoin to boost economic stability
In September 2021, El Salvador adopted Bitcoin as its currency Legal tenderAlong with its nationally recognized currency, the US dollar. Under the leadership of President Nayib Bukelethe Central American country has become one of the few countries to fully integrate Bitcoin as a national currency.
While recent enforcement actions taken by the United States regarding the cryptocurrency industry have slowed the progress of cryptocurrency and blockchain technology in the country, El Salvador is embracing Bitcoin To provide a level of economic stability for the country.
Despite facing significant criticism and skepticism from the US government and the United States International Monetary FundEl Salvador remains steadfast in its commitment to shaping its financial system around Bitcoin.
The current benefits of El Salvador’s massive Bitcoin bet are not limited to widespread profits and economic stability alone. The nation is currently experiencing an increase in financial inclusion with a large percentage of its citizens participating in it Digital transactions for their daily activities.
This shift towards a more technological and financially sustainable economy is consistent with the country’s broader vision for economic growth and development.
Featured image from Bitcoin Impacts, chart from Tradingview.com