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El Salvador sees $31 million profit from 3 years of Bitcoin adoption

El Salvador sees $31 million profit from 3 years of Bitcoin adoption

GrafaGrafa2024/09/08 08:15
By:Liezl Gambe

El Salvador is marking three years since adopting Bitcoin (CRYPTO:BTC) as legal tender, with the country now seeing a profit of over $31 million from its cryptocurrency holdings.  

This milestone highlights the potential benefits of the country's bold move despite early criticisms.  

On September 7, 2021, El Salvador became the first country in the world to officially recognise Bitcoin as legal tender.  

The decision aimed to boost financial inclusion, make remittances more efficient, and attract financial innovation.  

According to Alex Momot, founder and CEO of crypto trading platform Peanut Trade, El Salvador's Bitcoin adoption can be seen as a pioneering step in digital finance.  

He noted that while the full impact is still unfolding, the country has already gained some advantages.  

Since the adoption, El Salvador has been dollar-cost averaging its Bitcoin purchases, buying 1 Bitcoin daily.  

The country's Bitcoin holdings, bought at an average price of $43,877 per Bitcoin, now stand at 5,865 BTC, worth over $318 million.  

With Bitcoin trading at around $54,300 as of September 7, the country's portfolio is up by over $31 million, according to the Nayib Bukele Portfolio Tracker website.  

President Nayib Bukele's decision to invest in Bitcoin was initially met with skepticism, especially when Bitcoin's value dropped from a peak of $69,000 in November 2021 to as low as $16,000 during the bear market.  

However, the recent profit strengthens Bukele's position, showing tangible financial gains from the initiative.  

Despite El Salvador's success, larger economies remain cautious about adopting Bitcoin as legal tender, largely due to their reliance on international creditors who are against such moves.  

The Central African Republic is the only other country to have adopted Bitcoin in a similar fashion.  

Harshit Gangwar of Transak noted that El Salvador's early decision has set a precedent for the normalization of Bitcoin as both a currency and a national investment.  

At the time of reporting, the Bitcoin (BTC) price was $54,417.36.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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