El Salvador's Pro-Bitcoin President Begs For Patience As The Currency Plummets

El Salvador Boosts Its Bitcoin Holdings With New Purchase

  • El Salvador was the first country to accept Bitcoin as a legal tender.

Despite the unstable price of Bitcoin, Central American country, El Salvador, believes Bitcoin is the future of the world and recently purchased 80 bitcoin at $19,000 each, according to President Nayib Bukele. The country last bought bitcoin in May, when it paid $15.3 million for 500 coins.

President Nayib proudly shared screenshots of 40 purchases made on Thursday, which were worth $1.52 million, and wrote on Twitter,

Bitcoin is the future. Thank you for selling cheap.

Despite its latest purchase, El Salvador’s bitcoin stake is losing money. The nation has bought 2,301 coins since September for a total of $103.9 million, but its portfolio is only worth $46.6 million right now. Following the huge decline of Bitcoin in mid-June to $20,000, the President took to Twitter to reaffirm his faith in the digital currency. Nayib urged his followers to be patient. He wrote,

I see that some people are worried or anxious about the #Bitcoin market price. My advice: stop looking at the graph and enjoy life. If you invested in #BTC your investment is safe and its value will immensely grow after the bear market.

El Salvador and Its Bitcoin Bet

El Salvador has been one of the most crypto-friendly nations and was the first to make bitcoin a legal tender. Despite the surprising turn of events, the country remains a huge bitcoin influencer and continues to stock its reserve. However, many believe the Central American nation is incurring unnecessary losses by accumulating the declining currency.

Alejandro Zelaya, El Salvador’s finance minister, attempted to put a positive spin on the situation by claiming that since El Salvador hasn’t sold any of its Bitcoins, it hasn’t experienced any losses.  Alejandro also argued that El Salvador’s investment in Bitcoin does not represent a huge part of their budget and holds little significance.

El Salvador rejected a suggestion from the International Monetary Fund in January to stop accepting Bitcoin as legal currency. Reports state that the nation was advised by the IMF to liquidate the $150 million trust fund it established when it declared cryptocurrencies legal tender and to restore any leftover money to its treasury. The IMF raised concerns about the erratic nature of Bitcoin values and the potential for illegal use.

President Nayib’s bullish stance on digital currencies seems stronger than ever. Despite the living condition of his citizens, he hailed Bitcoin as a means of increasing financial inclusion. Nayib believes Bitcoin will help the unbanked access financial services. Nayib reportedly has greater plans for Bitcoin and is becoming a popular figure in the crypto world.

Lawrence Woriji Verified

Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.

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