President Nayib Bukele of El Salvador took to social media to proudly announce that his country’s controversial investment in Bitcoin has now yielded a profit, vindicating the decision to make the cryptocurrency legal tender. When El Salvador adopted Bitcoin as an official currency in September 2021, alongside the US dollar, it also began methodically purchasing small amounts of Bitcoin using government funds.
Critics widely questioned the wisdom of spending precious government reserves on the notoriously volatile digital asset. As Bitcoin’s price dramatically sank last year, the value of El Salvador’s modest Bitcoin holdings dropped as well, prompting accusations that Bukele had recklessly gambled with public money.
However, with Bitcoin rallying back above $41,000 in recent weeks, Bukele revealed that El Salvador’s Bitcoin portfolio, valued at around $131 million, has made a gain of $3.6 million. The president seemed eager to forcefully strike back at naysayers and news outlets that published criticism. He challenged them to retract their doubting statements, offer apologies, and acknowledge that El Salvador’s unorthodox embrace of Bitcoin is now demonstrably profitable.
Bukele reiterated that El Salvador has no intentions of selling its Bitcoin to cash in on short-term price spikes. The Bitcoin adoption is part of a long-term strategy to boost financial inclusion. While acknowledging that Bitcoin’s value will likely fluctuate wildly again, Bukele remains confident vindication is coming for the world’s first sovereign nation to add Bitcoin to its balance sheet.
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