- El Salvador made an initial $103 million Bitcoin purchase in September 2021 and continued dollar-cost averaging buys as the price collapsed amid the 2022 bear market. At one point, the portfolio value dropped to $45 million but is now profitable again.
- El Salvador became the first country to adopt Bitcoin as legal tender in 2021, but IMF has warned of limited adoption so far. Journalist Joe Hall found disappointing acceptance when testing Bitcoin for everyday purchases.
- Despite criticism, President Bukele remains committed to El Salvador’s Bitcoin strategy, confident that the country’s investments will pay off long term. Price volatility has not deterred his belief in Bitcoin’s future.
El Salvador‘s $131 million Bitcoin investment has returned to profitability after the devastating crypto bear market of 2022. President Nayib Bukele says the country has no plans to sell despite price fluctuations.
Bukele’s Bitcoin Buying Spree
In September 2021, El Salvador made an initial $103 million Bitcoin purchase. As Bitcoin’s price collapsed over 50% amid the bear market, Bukele continued dollar-cost averaging by making repeated buys throughout 2022. At one point, the portfolio value dropped to $45 million.
Bitcoin Legal Tender
In 2021, El Salvador became the first country to adopt Bitcoin as legal tender. However, the IMF has warned of limited Bitcoin adoption so far. Reporter Joe Hall found disappointing Bitcoin payment acceptance when testing transactions for everyday purchases. By next year, El Salvador plans to introduce Bitcoin education in schools.
Conclusion
Despite criticism, Bukele remains committed to his Bitcoin strategy for El Salvador, confident that the country’s investments will pay off over the long term. Price volatility has not deterred his belief in Bitcoin’s future.
