When El Salvador President Nayib Bukele went all in on Bitcoin in late 2021 at the height of the crypto bull market, he was praised by enthusiasts as a visionary leader but criticized by others for reckless spending. Nearly $126 million and over 3,120 coin purchases later.
According to data tracked by NayibTracker, Bukele is currently down 8% on his Bitcoin investment. The site has recorded the President’s BTC purchases based on his tweets, as official figures are difficult to obtain from the Salvadoran government. Bukele’s average buy-in price stands around $40.5k per Bitcoin. With Bitcoin trading under $17k as of November 2022, his $126 million investment is now valued at $116 million.
While currently underwater, Bukele purchased Bitcoin at prices well below its November 2021 all-time high of $69k. The most he has paid was around $60k for a batch of 420 coins. So he potentially has room for profit if Bitcoin rallies again.
And it’s not all doom and gloom – some positives have emerged from Bukele’s gamble. Tiny El Salvador has long grappled with massive national debts, but default fears eased after the Bitcoin move. Salvadoran bonds gave handsome returns over the past year.
Since taking power, Bukele has also taken steps to transform El Salvador’s global image – seeking to move it away from gang violence and civil war towards a tech and commerce hub attracting foreign investment. His harsh anti-gang crackdowns have slashed murder rates. With improved security, Bukele hopes more citizens stay put rather than head north to the U.S., and that expats may arrive to drive economic growth.
But most Salvadorans remain skeptical about Bitcoin. If Bukele’s big bet ever moves into profit territory, he may need to “orange pill” citizens on crypto’s potential. For now, as his paper losses indicate, the fruits of El Salvador’s Bitcoin gamble have yet to fully ripen.
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