El Salvador has reported over $300 million in unrealized earnings from Bitcoin investments after the cryptocurrency’s value surpassed $100,000 for the first time. President Nayib Bukele used social media to commemorate the milestone, providing information about the country’s increasing Bitcoin holdings.
On December 5, Bitcoin’s record-breaking surge to $103,465 increased the total value of El Salvador’s Bitcoin holdings to more than $600 million. After initially investing $269.7 million in the cryptocurrency, the country has experienced a spectacular 117% gain in the value of its holdings, demonstrating the success of its Bitcoin-centric approach.
Since September 2021, when Bitcoin became legal tender, El Salvador has steadily increased its portfolio. In 2022, the government also adopted a dollar-cost averaging strategy, buying one Bitcoin per day. Today, the country owns 6,180 BTC with an average purchase price of $44,739 per coin.
Bitcoin usage in El Salvador has expanded beyond investing, influencing a wide range of economic sectors. The move to include Bitcoin into the country’s banking system has increased tourism and sparked international interest. Despite criticism and repeated warnings from financial institutions such as the International Monetary Fund, President Bukele remains staunch in his support for Bitcoin.
Prominent members of the cryptocurrency industry, including Elon Musk, welcomed El Salvador’s innovative strategy and impressive financial benefits. Musk praised the country’s efforts, which have established it as a pioneer in Bitcoin acceptance.
El Salvador’s experience with Bitcoin exemplifies the power of digital currencies to revolutionize national economies. As the value of Bitcoin continues to grow, the Central American country’s pioneering approach serves as an example for other countries considering cryptocurrency adoption.
