- El Salvador has accumulated 722 Bitcoins since 2022, achieving gains through consistent daily purchases.
- Despite Bitcoin’s legal status, only 7.5% of Salvadorans use it for transactions.
El Salvador’s investment in Bitcoin has proven to be a risky yet potentially profitable choice. According to Spot On Chain, the country currently boasts a sizable 722 Bitcoins, bought each for an average price less than $42,000.
El Salvador’s bold Bitcoin bet is paying off!
Back on Nov 18, 2022, when $BTC hit $16.7K, President @nayibbukele committed to buying 1 $BTC daily.
Fast forward, they’ve now accumulated 722 $BTC at an average price below $42K, seeing gains of $24.54M (+81%). Their starting… pic.twitter.com/DtAMsKRK54
— Spot On Chain (@spotonchain) November 8, 2024
The value of El Salvador’s holdings has skyrocketed, rising by about 81% and producing a gain of almost $24.54 million, given that the present price of Bitcoin exceeds $75,880, up 22.06% over the last 30 days, as of writing.
Bukele’s Consistent Bitcoin Strategy Yields Significant Gains
Adopting this daily Bitcoin buying plan started on November 18, 2022, when President Nayib Bukele promised to buy one BTC every day, independent of market swings. BTC was trading at a low price at that time, at $16,700, and it was one of the best times to start this investment strategy.
The government has thus been able to establish a position at an overall beneficial average price by consistently and orderly accumulating Bitcoin at different price levels.
This method of investing in Bitcoin, particularly in times of low market value, shows a calculated risk that has resulted in appreciable short-term gains, therefore greatly raising the value of the Bitcoin portfolio for the country.
Although El Salvador’s daily BTC purchase approach is still crucial to its overall strategy, it complements other Bitcoin-related projects meant to stimulate economic development and technical innovation.
For example, as we previously highlighted, the nation has also been working on an ambitious project called “Bitcoin City,” a proposed metropolitan region funded via bonds connected to Bitcoin and meant to run totally on geothermal energy.
This city is part of the nation’s dedication to create an economy that combines Bitcoin at several levels and is meant to develop El Salvador as a center for blockchain technology and cryptocurrency.
Still, national acceptance of Bitcoin has not been without difficulties. Although the Bitcoin profits show a significant financial triumph, El Salvador’s general adoption has been meager. While Bitcoin has been accepted as legal money in the nation since 2021, CNF earlier reported that just roughly 7.5% of Salvadorans utilize it for regular transactions.
