Since 2021, El Salvador has been investing in Bitcoin and made it legal tender. Their president, Nayib Bukele, recently bragged about the country’s $100 million of unrealized profit from Bitcoin. In 2022, the International Monetary Fund warned that Bitcoin could destabilize El Salvador’s economy, and Bloomberg claimed that the country’s Bitcoin experiment had failed.
Now, according to SpotOnChain, El Salvador’s Bitcoin holdings are valued at $516.43 million with $100.65 million being unrealized profit. El Salvador began buying Bitcoin in September 2021 when the price was around $51,000. They have purchased Bitcoin ten times since then and committed to buying one BTC every day after the FTX collapse.
The price of Bitcoin has climbed to an all-time high of $89,000, a 436% increase. Recently, El Salvador’s Bitcoin stockpile was in a loss of $14 million, but it has since gained value due to Donald Trump’s reelection as U.S. president. This has led to speculation of a potential strategic Bitcoin reserve by the U.S.
government. El Salvador has also started a Bitcoin mining operation using energy from volcanoes, offering Bitcoin “volcano bonds.” The country’s Bitcoin experiment has been well-received and contributed to their financial success.
