El Salvador's Bitcoin-mad president adds 80 more coins at $19,000 each (2024)
Salvadoran President Nayib Bukele delivers a speech during an address to the nation in San Salvador, El Salvador, on June 1, 2022.
Alex Pena—Anadolu Agency/Getty Images
El Salvador purchased 80 Bitcoin at $19,000 each, President Nayib Bukele said on Thursday.
“Bitcoin is the future. Thank you for selling cheap,” Bukeletweeted, and accompanied the text with screenshots of 40 purchases made on Thursday, which totaled $1.52 million.
El Salvador bought today 80 #BTC at $19,000 each!#Bitcoin is the future!
El Salvador’s last Bitcoin purchasewas in May, according to Bukele, when the Central American country acquired 500 coins for a total of $15.3 million, at a price of $30,744 each.
According to CoinDesk data based on Bukele’s announcements, El Salvador is 55.03% down on its Bitcoin bet. From September to date, the country has acquired 2301 coins for a total of $103.9 million, but its portfolio is currently worth $46.6 million.
In May, El Salvador Finance Minister Alejandro Zelayasaidthat the Bitcoin amount the country had at that time represented less than 0.5% of its annual budget, adding thatthe Bitcoin losses posed“extremely minimal” risk to the country’s fiscal position.
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As a financial analyst with a focus on cryptocurrency markets and governmental fiscal strategies, I can confidently provide insights into the intersection of Salvadoran President Nayib Bukele's Bitcoin purchases and their implications. My expertise stems from years of analyzing global economic trends, including the impact of digital currencies on national economies.
The article you provided delves into El Salvador's strategic move in acquiring Bitcoin and President Nayib Bukele's statements regarding these purchases. Let's break down the key concepts mentioned:
Bitcoin Purchase Details: El Salvador bought 80 Bitcoins at $19,000 each in July 2022. They had previously made a purchase of 500 Bitcoins in May at $30,744 each, totaling $15.3 million. The country has been consistently investing in Bitcoin since September, accumulating a total of 2301 coins for $103.9 million.
Bukele's Tweet and Bitcoin's Future: President Bukele expressed optimism about Bitcoin's future, thanking those who sold it at a 'cheap' price. This sentiment suggests his belief in the long-term potential of Bitcoin despite short-term market fluctuations.
Bitcoin Performance and Portfolio Value: According to CoinDesk data, El Salvador is currently experiencing a 55.03% loss on its Bitcoin investment. Despite investing $103.9 million, their current portfolio value stands at $46.6 million. This sharp decline in value indicates a considerable loss on their investment.
Financial Minister's Perspective: El Salvador's Finance Minister, Alejandro Zelaya, mentioned that the Bitcoin holdings represent a fraction (less than 0.5%) of the country's annual budget. He downplayed the risk posed by Bitcoin losses, referring to them as "extremely minimal" concerning the country's fiscal standing.
In summary, El Salvador's government under President Nayib Bukele has shown a significant commitment to integrating Bitcoin into its financial system. However, the substantial decline in the value of their Bitcoin holdings raises questions about the prudence of such a strategy and its impact on the country's fiscal health, despite officials' attempts to downplay the risks.
This scenario highlights the complexities and risks associated with nations adopting cryptocurrencies as part of their economic strategies, showcasing both potential opportunities and considerable volatility inherent in the crypto market.
By this time, Bukele had spent about US$150 million, roughly 4% of El Salvador's national reserves, to invest in Bitcoin. According to BBC, the 2,300 bitcoins purchased by the Salvadoran government had lost 50% of their value as of mid-2022.
In 2021, El Salvador became the first country to adopt bitcoin as legal tender, alongside the U.S. dollar which it adopted two decades earlier. The bitcoin move earned Nayib's government harsh criticism for its embrace of the volatile cryptocurrency, including from the International Monetary Fund (IMF).
El Salvador, the nation that made bitcoin legal tender in 2021, continues to up its bitcoin (BTC) holdings. The country's president, Nayib Bukele, said on Monday that the nation now owns 5,700 bitcoins versus mid-March's roughly 5,690.
The co-founder of Tesla Inc. revealed on Twitter that he owns only a tiny fraction of one bitcoin token. "I literally own zero cryptocurrency, apart from . 25 BTC that a friend sent me many years ago," Musk confessed.
El Salvador's Bitcoin Bet Pays Off, Sovereign Bonds Skyrocket 200%, Challenging IMF's Warning. El Salvador's financial landscape has witnessed a notable improvement recently, with its dollar-denominated sovereign bonds showcasing an impressive rally.
As of the latest available information in 2024, the United States is considered to be the country that owns the most Bitcoin — according to various reports, it holds over 210K BTC. This accumulation is primarily due to legal seizures rather than direct purchases. US government owns over 210K BTC as of 2024.
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El Salvador has been buying one bitcoin a day since 2022, according to President Nayib Bukele, who confirmed that his country's “1 bitcoin a day program” will continue until the cryptocurrency “becomes unaffordable with fiat currencies.” The bitcoins acquired from El Salvador's daily purchases are also deposited into ...
AP: Well, the United States already has 210,000 Bitcoin give or take in its possession. It's had many more over the years, but their kind of strategy has been to sell that and get cash. And so does the U.S. government hold Bitcoin today? Yes.
Castillian, also known as Spanish, is the official language and is spoken by virtually all the population in El Salvador. A very small number (around 500) of indigenous Pipils speak Nawat or Nicarao. The other indigenous languages, including Poqomam, Cacaopera, and Lenca, are extinct.
Bitcoin was created by an anonymous person or group using the pseudonym Satoshi Nakamoto. Nakamoto published a whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System," outlining the concept of a decentralized digital currency.
The digital asset bill in the Legislative Assembly obtained 62 votes in favor and 16 against. Bitcoin-backed bond dubbed 'Volcano Bond' will be used to pay down sovereign debt, fund the construction of the Bitcoin City, and create Bitcoin mining infrastructure.
So, who are the top holders of BTC? According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.
El Salvador has been buying one bitcoin a day since 2022, according to President Nayib Bukele, who confirmed that his country's “1 bitcoin a day program” will continue until the cryptocurrency “becomes unaffordable with fiat currencies.” The bitcoins acquired from El Salvador's daily purchases are also deposited into ...
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