Bitcoin holders around the world are in turmoil as their investment in cryptocurrencies plummets. However, El Salvador could be in the worst situation.
Nayib Bukele, the president of El Salvador, is a huge crypto enthusiast and has invested heavily in BTC, and the worst thing is that the funds invested in Bitcoin are from Salvadoran taxpayers.
As of June 13, 2022, El Salvador’s Bitcoin investments are at half the price Bukele paid.
El Salvador bought 420 Bitcoins in October 2021 by investing more than $60,300 per Bitcoin when the president “bought the dip”, paying the highest price for Bitcoin. On May 9, Bukele once again “bought the dip” buying 500 Bitcoins for more than $30,700 each. At the time of writing, Bitcoin was trading at $22,649 and continuously falling.
El Salvador currently owns 2,301 Bitcoin which is currently worth 52,115,349, at the time of writing this is roughly 50% of the $105.6 million Bukele paid.
The crypto market has tanked over the past month due to various reasons, including the collapse of Terra and the insolvency of Celsius, a major DeFi lender. Anyone who has decided to invest Bitcoin in the last 18 months is desperate.
El Salvador is already facing financial difficulties in the country and this news has added to the concerns.
Bukele had such faith in Bitcoin that he accepted Bitcoin as legal tender in September 2021, becoming the first country to do so.
However, Bitcoin could not solve El Salvador’s problems either. Bukele still has to deal with problems facing his country, such as the wave of violent crime that has led to the incarceration of 2 percent of El Salvador’s adult population. Bukele is also dealing with the outcry against Bitcoin laws he helped design.
Interestingly, all of this hasn’t shaken Bukele’s belief in Bitcoin. Bukele intends to issue “volcanic bonds” to raise funds to be used to create a “Bitcoin city.” But the bonuses, which were scheduled to launch in March, are postponed due to current crypto market conditions.