The price of Bitcoin (BTC) surged above $42,000 on Monday, reaching its highest point since April 2022. This significant milestone has not only brought excitement to the cryptocurrency market but has also put El Salvador’s crypto bet back in the green. El Salvadorian President Nayib Bukele took to Twitter to announce that the nation’s BTC investments are now profitable, stating, “Our investments are in the black!”
President Bukele addressed the previous negative coverage surrounding El Salvador’s BTC investments, pointing out that these reports failed to consider the nation’s average purchase price. He revealed that at the current market price, El Salvador has made a profit of $3.6 million. Providing a screenshot of the nation’s BTC portfolio, Bukele disclosed that El Salvador currently owns approximately $130 million worth of BTC, which was acquired at an average price of $40,479 over the past two years. In total, El Salvador possesses around 2,750 BTC.
“We have no intention of selling… that has never been our objective,”
– Nayib Bukele, President of El Salvador
President Bukele emphasized that El Salvador’s long-term strategy remains unaffected by Bitcoin’s price fluctuations. He has been a staunch advocate for Bitcoin since introducing it as legal tender in 2021, offering technical support for its integration into the country’s economy. Bukele sees Bitcoin as an opportunity for countries like El Salvador to break free from the inflationary impact of the US dollar.
If the Bitcoin bull run continues, it is possible that other South American nations, such as Argentina, may follow El Salvador’s footsteps and make a similar bet on Bitcoin. Libertarian Argentinian President-elect Javier Milei has expressed his intention to dismantle the country’s central bank due to triple-digit annual inflation and has shown support for Bitcoin.
The Potential Impact on Argentina
As optimism grows regarding institutional adoption and the potential approval of spot Bitcoin ETFs in the US, Argentina may consider embracing Bitcoin as a means to combat its own economic challenges. With President-elect Milei’s interest in Bitcoin and his desire for significant changes in Argentina’s financial system, the nation could be poised to explore alternative solutions through cryptocurrency.
