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El Salvador’s Bitcoin investment sees Potential 40% profit, Bukele refuses to sell

TL;DR

  • President Nayib Bukele claims El Salvador would profit 40% from its Bitcoin investment, reaffirming the country’s decision not to sell its holdings.
  • Despite international criticism and warnings from the IMF about economic risks, El Salvador continues its daily Bitcoin purchases.
  • Bukele’s popularity in El Salvador remains high following his re-election and success in reducing gang violence, alongside the country’s pioneering Bitcoin law.

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.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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