Bitrabo Editorial
On September 7, 2021, El Salvador made headlines as President Nayib Bukele declared that the nation would officially recognize Bitcoin as legal tender. Further boosting this decision, the country started accumulating Bitcoin to foster its reserves. Now, three years later, it’s time to evaluate the outcomes of this ambitious BTC investment and discern its long-term viability.
Current Status of El Salvador’s Bitcoin Investments
According to reports from President Bukele, El Salvador’s inaugural Bitcoin acquisition occurred just a day before the historic announcement, on September 6, 2021. At that time, the nation purchased 400 BTC for an average price of $46,811, totaling approximately $18.7 million.
Since that initial investment, El Salvador’s Bitcoin holdings have significantly increased, surpassing 2,300 BTC within a year. The growth didn’t stop there, with additional purchases made over time.
Currently, El Salvador holds a total of 5,867 BTC. As of now, the average cost of acquiring this stash stands at $43,884. With Bitcoin trading above $55,000, the country is enjoying substantial gains from this investment.
The reported profits from the Bitcoin investments have reached $34.55 million, amounting to a 25.88% increase over the past three years. This positions El Salvador as the third-largest governmental holder of Bitcoin globally, trailing only the US and UK governments in BTC ownership.
El Salvador’s Stance on Bitcoin Holdings
In spite of the profits, President Bukele announced that El Salvador has no intentions of liquidating its Bitcoin assets. He views the holdings based solely on the quantity of BTC rather than its dollar equivalent—1 BTC remains equal to 1 BTC, independent of market fluctuations.
Regarding the legal adoption of Bitcoin, President Bukele emphasized that citizens are not compelled to use cryptocurrency. The nation continues to function with two recognized legal tenders: the US dollar and Bitcoin, allowing residents the choice between the two.
El Salvador remains dedicated to its Bitcoin strategy, launching a dedicated BTC monitoring website that displays various Bitcoin metrics, including the country’s total holdings.