Good day everybody,
Welcome to CryptoGod-1's blog on all things crypto. Today I will be taking a look at a recent Tweet by El Salvador President Nayib Bukele, who stated that nation is not in the green with their Bitcoin holdings following the price of Bitcoin rising above $42,000 on Monday the 4th of December 2023.
El Salvador in Profit
On Monday the 4th of December 2023 the price of Bitcoin (BTC) briefly surpassed $42,000 for the first time since April 2022. In doing so, it moved back above the average buy price of El Salvador's Bitcoin holdings. The emerging Central American nation is back in the green in terms of their cryptocurrency gamble, as El Salvadorian President Nayib Bukele took to 'X' to note that the nation’s BTC “investments are in the black!”
The nation had long been ridiculed for adopting Bitcoin as a national currency, with many forecasting despair for the country during the cryptocurrency crash of November 2022. In his post, Bukele rebuffed the thousands of articles that had been written about El Salvador’s supposed paper losses on its BTC investments since the nation began purchasing Bitcoin back in late 2021. Each of those articles had based the paper value off the current Bitcoin price at the time, and in response Bukele noted how at the current market price (in the mid-$41,000s at the time of his tweet), El Salvador were sitting on a profit of around $3.6 million.
Within the Tweet was a screenshot of the nations Bitcoin portfolio, showing that the currently own around $130 million worth of Bitcoin after buying the cryptocurrency at an average price of $40,479 over the past two years. Current estimates note that El Salvador owns around 2,750 Bitcoin.
In term of cashing in on the profits, Nayib Bukele was clear of his intent:
“We have no intention of selling… that has never been our objective. We are fully aware that the price will continue to fluctuate in the future, this doesn’t affect our long-term strategy”.
Having been a long-time supporter of Bitcoin, Bukele believes Bitcoin offers countries such as El Salvador a chance to escape from the dominance of the inflationary US dollar. With the potential for massive profits during an upcoming bull-run, that nation could inspire others in South America to follow suit, especially countries such as Argentina which are swamped by inflation. Libertarian Argentinian President-elect Javier Milei has recently promised to dismantle to country’s central bank with the country currently sitting on triple-digit annual inflation. He is also known to be a fan of Bitcoin and could look to follow in El Salvador's footsteps in adopting Bitcoin as a national currency down the line.
Have a great day.
Peace. CryptoGod-1.
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