El Salvador’s pro-Bitcoin president got his hands on 80 bitcoin on Thursday, increasing his nation’s losing cryptocurrency investment by nearly $1.5 million.
After publishing the purchase, President Nayib Bukele stated on his Twitter account: “Bitcoin is the future! Thank you for selling cheap.”
According to Bukele, his government bought 80 BTC for $19,000 each. The average amount the government paid for its prior $105.6 million BTC purchase was more than double the current purchase.
Bukele holds the title of the first leader to legalize bitcoin
According to the tracking website nayibtracker.com, El Salvador has paid an average of over $46,000 per coin since September, for a loss of 56%, or approximately $59 million.
Bukele wrote in mid-June, after the cryptocurrency plummeted below $20,000:
“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.” “Patience is the key.”
Bukele was the first leader in the world to declare cryptocurrencies legal last year, and he was still a fervent supporter in May, boasting about “buying the dip” in the currency’s valuation.
However, the currency has plummeted even further since then.
Finance Minister, Alejandro Zelaya, has attempted to put a positive spin on the issue, claiming that because El Salvador has not sold any of its BTC, the country has not suffered any losses.
Even if the distressed asset is not sold, most businesses and governments write off the value of what accountants call an “unrealized loss.” El Salvador’s investment “doesn’t even represent 0.5 percent of our budget,” Zelaya added, implying that the Bitcoin fall is insignificant.
El Salvador rejected the International Monetary Fund’s request to withdraw Bitcoin as legal money in January.
The IMF suggested that El Salvador dissolve the $150 million trust fund it established when it made cryptocurrencies legal and restore any unused funds to the country’s coffers. The IMF expressed worry about Bitcoin price volatility and the risk of criminals utilizing the cryptocurrency.