El Salvador has reached a remarkable financial milestone with its investment in Bitcoin (BTC), which is now recording gains of more than 40%. This news comes shortly after the re-election of President Nayib Bukele, known for his groundbreaking decision to make Bitcoin legal tender in the country. According to Bukele, the fact that El Salvador is now in the green is proof that he was right.
Financial progress through Bitcoin
Under the leadership of President Bukele, El Salvador has been purchasing Bitcoin since September 2021, with a total investment now worth over $147 million. If the country now decides to sell its Bitcoin stocks, it would mean a profit of almost $41.6 million.
When #BitcoinSince the market price was low, they wrote literally thousands of articles about our supposed losses.
Now this #BitcoinThe market price has increased significantly, if we were to sell we would make a profit of over 40% (from the market purchases alone), and our main source of BTC is now our…
— Nayib Bukele (@nayibbukele) February 28, 2024
That’s not a bad return at all, especially considering the investment was made less than three years ago. Since then, Bukele has been widely criticized by critics at home and abroad. He argues that the current profitable position has proven all these critics wrong.
Re-election of President Bukele
The re-election of Nayib Bukele as President of El Salvador is not only a sign of his popularity among citizens, but also an endorsement of his policies, including his controversial but progressive approach to cryptocurrencies. Bukele won the election earlier this month with more than 85% of the vote. This highlights the support he enjoys in the country, despite the challenges and criticism, particularly regarding his Bitcoin policies and tackling gang violence.
Although the introduction of Bitcoin as legal tender in El Salvador has drawn mixed reactions, from international criticism to domestic protests, it appears that Bukele’s risks are beginning to pay off not only financially but also politically. The recent gains in Bitcoin investment and the stabilization of government bonds are positive signs. However, many of Bukele’s ambitious projects, such as Bitcoin City and Volcano Bonds, have yet to get off the ground.