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Bitcoin holders around the world are in turmoil seeing their crypto investment freefall. However, El Salvador might be in the worse situation.
Nayib Bukele, El Salvador’s president, is a big crypto enthusiast, and has invested quite a lot in BTC, and what’s worse is that the funds invested in Bitcoin are of El Salvadorian taxpayers.
As of June 13, 2022, El Salvador’s Bitcoin investments stand at half the price at what Bukele paid.
El Salvador bought 420 Bitcoins in October 2021 by investing over $60,300 per Bitcoin when the president “bought the dip,” paying the highest price per Bitcoin. On May 9, Bukele once again “bought the dip” purchasing 500 Bitcoins for over $30,700 each. At the time of writing, Bitcoin was trading at $22,649 and continuously falling.
El Salvador currently owns 2,301 Bitcoin currently holding the value of 52,115,349, at the time of writing, this is roughly 50% of the $105.6 million that Bukele paid.
The crypto market has crashed over the past month due to various reasons such as Terra collapse and the insolvency of Celsius, a major DeFi lender. Anyone who decided to invest Bitcoin in the last 18 months is in despair.
El Salvador is already facing financial difficulties in the country and this news has added to the concerns.
Bukele had such a faith in Bitcoin that he accepted Bitcoin as a legal tender in September 2021, making it the first country to do so
However, Bitcoin also couldn’t solve El Salvador’s problems. Bukele still has to handle the issues it’s country is facing such as the violent crime wave that led to putting 2 percent of El Salvador’s adult population into jail. Bukele is also dealing with protest against the Bitcoin laws that he helped in devising
Interestingly, all this hasn’t shaken the belief of Bukele regarding Bitcoin. Bukele intends to issue “volcano bonds” for raising funds that will be used to create a “Bitcoin city.” But the bonds, which were scheduled to release in March,are postponed because of the ongoing crypto market conditions.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
