In a noteworthy turn of events, El Salvador’s Bitcoin investment, which faced challenges during the crypto winter, has bounced back into profitability. Salvadoran President Nayib Bukele revealed that the cumulative Bitcoin investments now stand at $131 million, boasting a net profit of $3.6 million, reflecting a total gain of 2.84%.
President Bukele clarified the nation’s commitment, stating, “We have no intention of selling; that has never been our objective.” Emphasizing awareness of future price fluctuations, he added, “this doesn’t affect our long-term strategy.”
El Salvador’s journey with Bitcoin began in September 2021 when, amid a bear market, the country purchased BTC through its national treasury, initiating a $10.3 million investment. Subsequently, Bitcoin’s value faced a significant decline of over 50%. Undeterred, Bukele adopted a dollar-cost-averaging approach, consistently acquiring Bitcoin throughout 2022. At one point, the portfolio’s value plummeted to $45 million from an initial book value of $103.9 million.
In 2021, El Salvador made history by becoming the first country to adopt Bitcoin as legal tender. Despite the International Monetary Fund’s cautionary note on Bitcoin’s risks, citing limited adoption, El Salvador’s commitment persisted. Reporter Joe Hall’s attempt to use Bitcoin for everyday services in El Salvador yielded disappointing results in December.
With plans to introduce Bitcoin education in state-run schools by next year, El Salvador remains at the forefront of embracing cryptocurrency on a national scale. Earlier, another Bitcoin education project was announced by Trezor. The company launched the Trezor Academy in Africa, aiming to foster Bitcoin awareness across the continent. Trezor’s commitment extends to backing Bitcoineta, a Bitcoin awareness campaign traversing West African nations. The initiative, unveiled at the Africa Bitcoin Conference, reflects the growing global embrace of cryptocurrency education.
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