El Salvador’s foray into Bitcoin investment has yielded substantial profits, totaling $12.6 million. The nation, which had been grappling with deficits for two years, initiated its Bitcoin acquisition in September 2021, securing 700 BTC at a cost ranging between $47,250 and $52,670 over a two-week span. President Nayib Bukele proudly announced the country’s return to profitability last month, hailing the success of this bold financial move.
In November 2022, El Salvador made another significant Bitcoin purchase, acquiring the digital asset at a rate of $27,780 per coin. This latest acquisition brings the country’s total Bitcoin holdings to 2,798 bitcoins, currently valued at $131.3 million. With an average acquisition cost of $42,440 for this substantial Bitcoin stash, El Salvador has greatly benefited from the cryptocurrency’s 75% increase in value since October.
El Salvador made history in 2021 by becoming the first nation to officially embrace Bitcoin as legal tender. This pioneering move has prompted speculation that Argentina may consider a similar path, driven by President Javier Milei’s appointment amid the country’s struggle with hyperinflation.
Public Opinion on Bitcoin Adoption:
In response to this news, the public’s sentiments have been diverse. A Reddit user highlighted El Salvador’s unique position and emphasized the nation’s heightened global visibility due to its Bitcoin adoption. They also underscored the economic benefits of Bitcoin tourism, particularly in the post-COVID era.
Conversely, another Reddit user expressed skepticism about solely attributing increased tourism revenue to Bitcoin. They argued that the surge in travel post-COVID was a general trend and not necessarily a direct result of Bitcoin adoption. Additionally, they cited studies indicating that Bitcoin’s role in remittances within El Salvador remained relatively small.
As the anticipation surrounding the SEC’s decision on the Bitcoin ETF intensifies, it has the potential to mark a significant milestone for the crypto market. This decision could greatly influence investor sentiment and overall market dynamics, impacting the broader cryptocurrency landscape.
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Qadir AK
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.