El Salvador is celebrating the third anniversary of the important choice made on adopting Bitcoin as money. Right now, Bitcoin brought in the country about $31 million. This important measure shows that President Nayib Bukele has a long-term goal even if the country chose a path never followed before and there was much uncertainty and criticism.
At the start of September 7, 2021, El Salvador was the first country in the world to accept Bitcoin (BTC). This was done to make it easy for more people to get money, send money, and learn about new money ideas.
People can trade Bitcoin on the website Peanut Trade, which is run by Alex Momot. Momot says that El Salvador is a star in the field of digital assets because of this brave move.
As soon as Bitcoin became legal, El Salvador began slowly collecting it using a dollar-cost average method. The country now has 5,865 Bitcoins, since one is bought every day.
Salvador’s Bitcoin Strategy Shows Long-Term Promise
The Nayib Bukele Portfolio Tracker says that the average price to buy a Bitcoin in the country was $43,777. One Bitcoin was worth about $54,300 at 10:55 a.m. UTC on September 7, 2024. This means that the country has more than $318 million in Bitcoin funds right now.
“El Salvador’s $31 million profit from Bitcoin demonstrates the long-term viability and economic potential of the decision, despite the initial backlash,” Momot said. But the plan has also set the country up for future wins as interest in digital assets grows around the world. It has helped the country get through the rough times of the cryptocurrency market.
Still, there were several issues along the road that would have cost money. Bitcoin peaked in November 2021 at $69,000, all-time high. But after the FTX exchange dropped and the market as a whole slumped, its value dropped as well, falling as low as $16, 000.
Following this significant decline, El Salvador’s Bitcoin supplies entered the negative, which infuriated many people over President Bukele’s decision.
El Salvador stayed to follow its Bitcoin strategy even with these setbacks. The increase in the price of Bitcoin has shown this promise: a loss became a significant gain. Many individuals are asking how the economy would fare should other nations immediately embrace Bitcoin.
Though general opinions of El Salvador’s actions have been mixed. As of April 2022 the Central African Republic joins other countries permitting legal use of Bitcoin. Still slow to adopt Bitcoin as money are major economies.
Concerns about the volatility of Bitcoin and the effects of foreign creditors like the International Monetary Fund (IMF) have people growingly wary. The IMF has underlined pressure on nations like El Salvador to change their decision to accept cryptocurrencies.
On the other hand, Brazil in Latin America wants to legalize Bitcoin, even though many of the rules are still being written. Even though El Salvador has had success, the fact that bigger countries don’t accept Bitcoin as money shows that the world’s economy isn’t ready for it to be used by everyone just yet.
El Salvador is celebrating the third anniversary of the historic ruling declaring Bitcoin legal currency. The country claims a profit from Bitcoin already more than $31 million. This important move shows that President Nayib Bukele has long-term goals even if the country made a decision never done before surrounded with a lot of uncertainty and criticism.
