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El Salvador’s Bitcoin Holdings Rise In Value

2023-12-05 16:23:15

Profits from the nation’s Bitcoin holdings have resumed following a disastrous crypto winter.

President Nayib Bukele of El Salvador stated in a statement on December 4th that the country’s entire Bitcoin assets are presently $131 million, with a $3.6 million profit—a benefit of 2.84% overall. “Of course, we have no intention of selling; that has never been our objective,” clarified Bukele. He emphasized, “We are fully aware that the price will continue to fluctuate in the future; this doesn’t affect our long-term strategy.”

After receiving consent from the congressional body of El Salvador, Bukele retired as president on December 1st, 2024, so he could take an official leave of absence and concentrate on the campaign for reelection in 2024. Beginning in September 2021 and with a starting amount of $10.3 million, the country of Central America bought Bitcoin through its national treasury under Bukele’s inaugural term as president. But in the midst of the bear market, the worth of Bitcoin quickly fell by more than 50%.

In contrast to this, Bukele persisted in dollar-cost-averaging the nation’s Bitcoin holdings, making many acquisitions in 2022. The nation’s Bitcoin portfolio dropped from an actual value of $103.9 million to as low as $45 million at a single point.

El Salvador was the first nation to accept Bitcoin as legal money in 2021. After then, the International Monetary Fund issued a warning, stating that because of the cryptocurrency’s low uptake in El Salvador, its concerns have never been realized. 

Journalist Joe Hall of Cointelegraph visited El Salvador in December of last year and tried using Bitcoin to make payments for basic services, but his attempts were not successful. El Salvador intends to implement Bitcoin instruction in state-run schools by the following year.

In the month of June 2021, FMNLB, a rival of New Concepts, filed an action, alleging that Bukele's acceptance of the Bitcoin scheme violates the laws of the land. Three years later, in September of 2021, Bukele and El Salvador declared Bitcoin legal cash, therefore the lawsuit was not very persuasive.In an effort to boost the nation’s economy, the Bukele administration has also put in place additional tech-friendly measures, such as removing any taxes on new technology developments.

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