El Salvador’s President Nayib Bukele recently took to Twitter to address critics of the country’s adoption of Bitcoin as legal tender. In his statement, Bukele claimed that El Salvador would have realized a 40% profit had it decided to sell its Bitcoin holdings at the current market rate.
Despite the potential for profit, Bukele affirmed the country’s stance on not selling its cryptocurrency, emphasizing the long-term view of their investment by stating, “We won’t sell, [of] course.”
The conversation around El Salvador’s Bitcoin holdings and their value comes as the cryptocurrency approaches 12 percent of its all-time high, with a nearly 10% increase observed in a single 24-hour period. The country’s investment in Bitcoin has been tracked through the Nayib Bukele Portfolio Tracker, an online tool that monitors El Salvador’s Bitcoin purchases and their cost basis, as announced by Bukele. According to this tracker, El Salvador is in possession of 2,848 Bitcoin, estimated to be worth around $173 million at current prices.
Criticism and support for El Salvador’s Bitcoin law
Bukele’s administration has faced significant scrutiny from both the international community and financial analysts over its decision to make Bitcoin legal tender. The International Monetary Fund (IMF) has warned of the potential economic risks posed by this move, given the volatility associated with cryptocurrencies. Despite these warnings and a bear market in 2022 that led to widespread criticism, El Salvador has continued to buy Bitcoin, with a commitment to purchase 1 BTC daily following the collapse of the FTX exchange.
This steadfast commitment to Bitcoin comes in the context of discussions about the role of cryptocurrencies in national economies and their potential to disrupt traditional financial systems. Bukele’s recent comments also highlight a sense of vindication as Bitcoin’s value rises, challenging the narratives of those who predicted the failure of El Salvador’s cryptocurrency strategy.
Leadership and popularity
Nayib Bukele’s leadership extends beyond his cryptocurrency strategy. His recent re-election with 85% of the vote underscores his popularity among Salvadorans, bolstered by significant reductions in gang violence and improvements in public safety. Bukele attributes part of his administration’s success to his innovative financial policies, including the adoption of Bitcoin.
Similar to El Salvador’s approach, companies like MicroStrategy have also invested heavily in Bitcoin, seeing substantial returns on their investments. Cryptopolitan reported earlier that the company acquired an additional 3,000 bitcoins for $155.4 million. The value of MicroStrategy’s BTC holdings has surged to $10.28 billion.
