As a seasoned crypto investor with over two decades of experience under my belt, witnessing El Salvador’s Bitcoin adventure from its inception has been nothing short of exhilarating. Three years ago, I might have raised an eyebrow at such a bold move, but now, looking back, it seems like a masterstroke.
Three years ago, on September 7, 2021, the nation of El Salvador made headlines globally as President Nayib Bukele declared Bitcoin would be recognized as a legitimate currency within its borders. Moreover, the country took further steps to accumulate Bitcoin for its reserves, gradually expanding this digital hoard over time. As we reflect on these three years since El Salvador embarked on its Bitcoin venture, it’s worth examining how this gamble is unfolding and whether it represents a shrewd long-term choice.
El Salvador’s Bitcoin Holdings
On September 6, 2021, El Salvador’s initial Bitcoin purchase took place, as revealed by President Nayib Bukele. This transaction occurred a day before the official announcement of Bitcoin being recognized as legal tender in the country. With each coin costing approximately $46,811, the total expenditure for 400 BTC amounted to around $18.724 million.
Since that initial buy, the Bitcoin holdings of the treasury have significantly increased, followed by several large acquisitions. Just a year after the first purchase, the country’s Bitcoin reserves surpassed 2,300 BTC. Yet, this trend didn’t slow down, as more Bitcoin purchases were made subsequently.
Currently, as I’m typing this, the nation of El Salvador has a total of 5,867 Bitcoins in its possession. The Nayib Tracker indicates that the average price at which these Bitcoins were purchased is around $43,884. Given that the current Bitcoin price is over $55,000, it suggests that El Salvador is earning substantial profits on its Bitcoin holdings.
As a crypto investor, I’m thrilled to share that my country’s Bitcoin investments have yielded an impressive profit of $34.55 million. This represents a substantial 25.88% gain on our Bitcoin purchases over the past three years. It’s also worth noting that we’ve amassed such a significant BTC stash that we now rank third globally among government holders of Bitcoin, trailing behind the US and UK governments. According to Arkham Intelligence, these two giants hold 203,238.74 BTC and 61,245.01 BTC respectively.
El Salvador Not Relenting
President Nayib Bukele announced that El Salvador won’t be selling its Bitcoin, despite earning substantial profits from it. Instead, he prefers to evaluate the Bitcoin holdings not based on their U.S. dollar worth, but equally – so that 1 BTC is equivalent to exactly 1 BTC regardless of its dollar value.
The President has declared that while Bitcoin holds legal status as tender, no compulsion has been applied to citizens for its adoption. Consequently, the nation functions with two recognized currencies: the US Dollar and Bitcoin. Citizens are free to choose either depending on their preference or convenience.
Despite this, El Salvador continues to stand firm in its Bitcoin endeavor. They’ve established their own Bitcoin monitoring platform where users can observe various Bitcoin statistics. This platform also enables users to trace the nation’s Bitcoin reserves.
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2024-09-09 23:12