The Central American country, El Salvador, that President Nayib Bukele leads, has made a big profit of $357 million by investing in bitcoin. The country has spent $287.1 million to buy bitcoin, and now its bitcoin is worth $644.4 million because its price has increased significantly.
This shows that the country has gained 124.4% more than what they paid, but this is “unrealized profit” as they haven’t sold the bitcoin yet. This year alone, El Salvador has seen $69.8 million in unrealized gains, fueled by bitcoin’s rally toward its all-time high of $108,786.
At the time of writing, El Salvador holds approximately 6,181 BTC, worth around $639 million, as reported by the nation’s bitcoin office. President Nayib Bukele has shared this country’s achievement in his X post.
In June 2021, El Salvador became the first country to make bitcoin, a digital currency, an official form of money. In November 2022, President Bukele announced that the country would buy one Bitcoin every day. The government of El Salvador, led by President Bukele, has reported that it holds 5,700 bitcoins as of May 2024. And recently, the country held 6,181 bitcoins.
President Bukele wanted to make it easier for the country’s citizens, who do not easily use banks. He believed that using Bitcoin for purchases would simplify the buying process. On the contrary, major financial organisations including the IMF, attempted to prevent it, calling it a bad idea for the country’s economic stability.
Despite this, the country continued to buy and keep more bitcoin. Bukele’s government navigated IMF agreements that required limiting bitcoin-related activities, such as making its acceptance voluntary for private businesses, which was swiftly legislated in January.
Bitcoin’s price has been going up because more people believe it’s a strong investment and are hopeful that it would turn out into a globally recognized currency. This case shows that bitcoin’s value can change a lot, but it also has big potential.
El Salvador’s heavy investment in bitcoin, once considered risky by many, is now proving successful. The result makes the country a leader in using cryptocurrency as the world’s economy changes.
Also Read: El Salvador Keeps Buying Bitcoin Despite IMF Deal, Says Minister
