El Salvador’s President Nayib Bukele has defended his country’s decision to adopt bitcoin as legal tender amidst criticism and soaring market prices. In a recent Twitter statement, Bukele revealed that El Salvador would have realized a considerable profit of over 40% if it had sold its bitcoin holdings at the current market rate. However, he reaffirmed the country’s commitment to maintaining its investment in bitcoin.
El Salvador’s bitcoin holdings and their worth have become a topic of interest, with the cryptocurrency nearing 12 percent of its all-time high. A significant increase of almost 10% was observed in a single day. The Nayib Bukele Portfolio Tracker, an contact tool that monitors El Salvador’s bitcoin purchases and their cost basis, reported that the country possesses 2,848 bitcoin, equivalent to approximately $173 million based on current prices.
Controversy and Support for El Salvador’s bitcoin Law
Bukele’s administration has faced considerable criticism from both the international community and financial analysts regarding its decision to make bitcoin legal tender. The International Monetary Fund (IMF) has expressed concerns about the potential economic risks associated with cryptocurrencies due to their volatility. Despite these warnings and the bear market in 2022 that resulted in widespread criticism, El Salvador has continued to invest in bitcoin with a pledge to buy 1 btc daily after the collapse of the FTX exchange.
This unwavering dedication to bitcoin is set against a backdrop of discussions about cryptocurrencies’ role in national economies and their potential impact on traditional financial systems. Bukele’s recent statements also reflect a sense of validation as bitcoin’s value rises, contradicting the forecasts of those who anticipated El Salvador’s cryptocurrency strategy would fail.
Leadership and Popularity
Beyond his cryptocurrency strategy, Bukele’s leadership extends to the approval of Salvadorans. His recent re-election with 85% of the votes demonstrates his popularity among the Salvadoran population, bolstered by significant reductions in gang violence and enhancements in public safety. Bukele credits part of his administration’s success to its innovative financial policies, including the adoption of bitcoin.
Similar to El Salvador’s approach, companies like MicroStrategy have also made substantial investments in bitcoin, reaping considerable returns on their investments. According to a report by Cryptopolitan, the company acquired an additional 3,000 bitcoins for $155.4 million. The value of MicroStrategy’s btc holdings has skyrocketed to $10.28 billion.
