Anyone familiar with crypto, particularly Bitcoin, knows about the history El Salvador made last year in September as the first country to embrace Bitcoin as an official currency. So naturally, this development bred a lot of opinions among several experts.
While some criticized this move, others applauded the efforts and followed that path. For example, El Salvador has since worked on better and more quality ways to sustain this activity and improve the use of Bitcoin in their country.
In light of this, El Salvador is again purchasing Bitcoin after taking a break during the months-long bear market.
El Salvador's president, Nayib Bukele, declared on November 16 that the country of Central America would begin buying Bitcoin daily on November 17. The news was released about three months after the country's final BTC acquisition in July 2022.
After declaring Bitcoin a legal tender in September 2021, El Salvador began purchasing the currency. At the time, BTC was experiencing a bull market, making every investment the country made appear profitable since the price was setting new records every other week. But as the bear market began to take hold by the second quarter of 2022, El Salvador's early BTC purchases began to seem like a risky bet that cost him dearly.
Public records reveal that El Salvador presently possesses 2,381 BTC at an average purchase price of 43,357 dollars. As a result, the country's BTC purchase cost close to $103.23 million, while the price of the same BTC is today $39.4 million.
El Salvador can counterbalance its deficits in the upcoming months by introducing a new BTC purchasing procedure when the most popular cryptocurrency is trading at a new cycle low.
Further than the tiny country's losses on its Bitcoin acquisitions, the leading cryptocurrency has played a crucial role in considerably lowering the cost of cross-border remittances and boosting the tourism industry.
Reports reveal that while many tourism destinations accept Bitcoin, mobile applications and services still require improvement.
Because of the severe crypto winter, El Salvador's acceptance of Bitcoin may seem more optimistic right now. According to the history of the price of Bitcoin, by merely hanging onto its BTC purchase, the country can painlessly recoup its losses in the upcoming bull cycle.
What do you think about this move by El Salvador? Kindly share your thoughts with us in the comments section.
