Key Points
- El Salvador’s President, Nayib Bukele, celebrates a 127% profit as Bitcoin surpasses $100,000.
- El Salvador’s investment strategy of purchasing 1 Bitcoin daily has resulted in substantial gains.
Nayib Bukele, El Salvador’s President, is celebrating as Bitcoin, the world’s largest digital asset, broke above the $100,000 price level. This historic event marks the first time Bitcoin has hit a $2 trillion market valuation.
El Salvador, the first country to adopt Bitcoin as legal tender, has been buying 1 Bitcoin each day for several months. This strategy has resulted in significant profits for the country.
El Salvador’s Bitcoin Investment
In a social media post on platform X (formerly Twitter), Bukele shared a screenshot of the country’s crypto wallet. The screenshot revealed that El Salvador owns Bitcoin worth a staggering $603,340,991, up 117% year-to-date (YTD).
This investment strategy has resulted in El Salvador owning a substantial 6,178 Bitcoins, according to data from Nayibtracker.
El Salvador has invested a total of $269,743,800.80 in Bitcoin and has $333,597,190.20 in unrealized gains. The value of this portfolio has been on a steady rise since the crypto winter of 2022.
The country’s investment strategy has been praised by the likes of Elon Musk, Tesla’s CEO, who called it “impressive”. The broader digital asset community has also commended Bukele for his fearless adoption of Bitcoin during turbulent times.
El Salvador’s Bitcoin Journey
Bukele announced El Salvador’s intention to buy 1 Bitcoin every day back in November 2022. At that time, many users of platform X ridiculed this strategy, predicting that Bukele’s commitment to Bitcoin would not last.
Despite warnings from the International Monetary Fund (IMF) about the risks of exposure to Bitcoin, El Salvador continued its investment strategy. When the country began purchasing Bitcoin, the digital asset was trading at around $36,000. It has since reached an all-time high of $103,900.47 and a valuation of $2 trillion.
The country has taken several steps towards Bitcoin adoption, including issuing Bitcoin bonds and mining Bitcoin using thermal energy. Recently, it introduced a “Bitcoin training and certification program” under the National Bitcoin Office (ONBTC), aiming to train over 80,000 civil servants.
As Bitcoin surpassed $100,000, Binance’s co-founder and former CEO Changpeng Zhao (CZ) explained that Bitcoin’s value remains the same, but due to inflation, fiat currency becomes cheaper in comparison.
