El Salvador’s president, Nayib Bukele, was a strong supporter of Bitcoin during the 2021 bull market. He declared in November 2022 that the nation would add one Bitcoin daily to its growing reserve. However, critics, ranging from university professors to U.S. lawmakers, have labeled his approach as reckless.
But what has been the actual performance of this investment?
The NayibTracker website, which relies on the president’s tweets to track his Bitcoin purchases, has calculated that Bukele is currently facing an approximately 8% loss on his investment of 3,120 BTC.
According to the data, the average price at which El Salvador acquired BTC now stands at $40,498 per coin.
In total, he spent over $126 million on Bitcoin, which is currently valued at $116 million. This means he’s incurred a loss of over $10 million, nearly 8% below his initial investment.
It’s worth noting that all the BTC he acquired was purchased at prices below the cryptocurrency’s all-time high in November 2021, with the costliest batch being 420 coins acquired at $60,345 each.
See Related: El Salvador Businesses Barely Impacted By Bitcoins Legality
Other Side Of El Salvador
While he has some way to go before turning a profit, it’s not all negative news for El Salvador. The country was on the verge of defaulting on its significant national debts last year, but its bonds have since delivered substantial returns to investors.
Before Bukele assumed the presidency, El Salvador was primarily known for its surfing, a history of civil conflict, and gang-related violence. Under his leadership, efforts have been made to transform it into a technology hub, attracting foreign, including Chinese, investment.
With a firm crackdown on the nation’s notorious gangs, the murder rate has plummeted, leading Bukele to hope for an influx of expatriates and a reduction in the number of Salvadorans heading north to the United States.
However, despite these improvements in the country’s security, Bitcoin remains a contentious issue. If Bukele’s Bitcoin bet eventually turns profitable, he might need to convince his citizens of its benefits.
