El Salvador’s Bitcoin Experiment: Bukele’s Risky Bet and Its Implications
El Salvador’s President Nayib Bukele, a vocal supporter of Bitcoin during the 2021 bull market, announced last November the country’s plan to add one Bitcoin daily to its balance sheet.
Despite criticism from various quarters for recklessness, Bukele’s investment performance has been closely monitored by the NayibTracker website, using his tweets to track purchases. With a dollar cost averaging approach, Bukele is currently facing an almost 8% loss on his investment of 3,120 BTC. The average purchase price per Bitcoin stands at $40,498, with a total expenditure of over $126 million now valued at $116 million, resulting in a $10 million downturn. Notably, all BTC acquisitions occurred below the asset’s November 2021 all-time high of $69,044.
While Bukele aims to transform El Salvador into a tech hub and attract foreign investment, his Bitcoin gamble is yet to yield a profit. Despite this, the country has experienced positive economic outcomes, with improved security contributing to investor confidence and reduced national debts. Bukele’s ambitious vision for El Salvador includes curbing gang violence, lowering the murder rate, and fostering a vibrant expat community to deter emigration. The relationship between Bukele’s Bitcoin strategy and public sentiment remains a complex aspect of his leadership. If his investment turns profitable, he may need to persuade the citizens to embrace cryptocurrency.
Clever Robot News Desk 26th November 2023
