El Salvador’s over $100 million Bitcoin purchase is now worth $66 million

El Salvador’s Bitcoin (BTC) investment is performing poorly, with the value of the more than 2,000 units it holds falling by about $40 million. The decline in value results from Bitcoin falling to its lowest price in more than a year due to the current market realities.

El Salvador’s Bitcoin holdings in red

El Salvador has spent around $105 million on its Bitcoin purchases, but the value of its holdings was around $66 million as of May 12.

President Nayib Bukele made Bitcoin legal tender in the country in September 2021 to improve its economy. El Salvador also became the first sovereign nation to buy Bitcoin.

Per CryptoSlate data, BTC’s value has fallen 45% since El Salvador bought its first coins.

However, the losses have not deterred the country, as President Bukele revealed that he took advantage of the recent price decline to purchase an additional 500 BTC.

The Central American country president, in a recent tweet, said the rest of the world would come to understand that “1 BTC = 1 BTC” regardless of its price performance.

What do the losses mean for El Salvador?

For an indebted country like El Salvador, investments in volatile assets like Bitcoin have generated many criticisms.

A Bloomberg report categorically stated that the country’s losses on Bitcoin are equal to its next interest payment to bondholders, due on June 15.

The former Central Bank Chief of the country, Carlos Acevedo, captured the situation best. He said the Bitcoin investments are

Risky because it’s an extremely volatile asset, and it’s an investment that is totally at the discretion of the president. He buys it on his phone when he wants to take advantage of the dip, but he doesn’t do it right because when he buys, there’s always a bigger dip.

This lack of accountability or whim purchases by President Bukele has divided his citizens and strained the country’s relationship with agencies such as the International Monetary Fund (IMF). Talks between El Salvador and the IMF over an extended fund facility had stalled since last year.

Aside from that, US officials have also expressed concerns about the country’s decision to adopt BTC as a legal tender. In February, some legislature members proposed a Bill to review how the US can protect itself against El Salvador’s Bitcoin decision.

The post El Salvador’s over $100 million Bitcoin purchase is now worth $66 million appeared first on CryptoSlate.


Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
On Key

Related Posts

Overvalued or Undervalued? How much is Ethereum actually worth?

Ethereum (ETH) is one of the most popular and well-known cryptocurrencies. For the market, the Ether price is the second most important value after the Bitcoin. At the moment we saw a sharp drop in the value of Ethereum in 2022. But is Ethereum undervalued or overvalued today? In this article, we will tell you how much Ethereum

ETC Price Analysis: What is Ethereum Classic and its Battle With Ethereum

Ethereum Classic is a fork of Ethereum. People who closely observed the crypto world in 2016 know about the Ethereum hard fork. What is dramatic about the happening is that the once-vaunted “code is law” philosophy has been broken, pushing major waves in the crypto world. This post is all about ETC price analysis and its battle

Andreessen Horowitz Announces $4.5 Billion Fund for Crypto, Blockchain Sector

At a time when the digital assets market is witnessing an acute downturn, American venture capital fund Andreessen Horowitz has announced a new $4.5 billion fund for crypto and blockchain investments. This is the fourth fund from the Silicon Valley fund for the crypto asset class. Together, the fund now accumulates $7.6 billion. Andreessen’s first

Bullieverse Integrates ChainLink VRF for Bear Hunt NFT Game

The Bullieverse metaverse on Ethereum and Polygon have integrated the ChainLink Verifiable Random Function. The decision was made for a fair distribution of NFTs in the new Bear Hunt 3D game. Moreover, the function will help users verify the transparency of the game while also making sure everyone stands an equal opportunity to win the