El Salvador, far from being a nation as opulent as Croesus, nevertheless continues to accumulate bitcoins with disconcerting tenacity. For months, this small Central American country, under the leadership of its president nicknamed the “cool dictator,” has not sold a single coin of its precious reserve. Its choice to bet on Bitcoin seems unwavering. But what is behind this audacious strategy? Let’s get to the heart of the matter.
Bitcoin: a risky bet or a vision for the future?
Since March 2024, every day without fail, against the backdrop of the 1 bitcoin per day operation, El Salvador adds a Bitcoin to his national treasure. An operation which allowed us to harvest 162 additional partsbringing the total to 5,851 BTC, or approximately $356.4 million at current prices.
Behind this frenzied accumulation is Nayib Bukele, the young president who has made Bitcoin the emblem of its economic policyFor him, this flagship crypto is the key to the country's financial independence.
Bukele even dubbed the reserve his first “Bitcoin piggy bank,” in reference to a large transfer of 5,689 BTC in March. A strong symbol, but no less perilous. If in the short term, El Salvador shows a nice floating profit of 93.45 million dollars, the crypto markets are anything but stable.
The international community is divided between admiration for Bukele's bravery and skepticism about what could turn into an economic disaster.
- 5,851 BTC in reserve;
- 162 BTC purchased since March 2024;
- $93.45 million floating profit.
Crypto: Transparency in question
To allay fears, Bukele has implemented a “mempool space” system, allowing full transparency on bitcoin holdings of the government. The idea is laudable, but not necessarily sufficient to dispel doubts.
El Salvador is not just buying bitcoins, he also undermines them. Thanks to the geothermal energy of its volcanoes, green energy, the country has extracted 474 BTC, or around $29 million since 2021.
This ecological approach is part of the president's vision: combining technology and natural resources. However, in the face of crypto volatility, even a green strategy does not guarantee success.
Yet Bukele persists, freshly re-elected for a second five-year termhe seems determined to lead his country on this winding road, despite criticism and growing concerns.
As El Salvador Continues to Add to Its Bitcoin Reserves, the International Community Remains Divided: Madness or Strategy?
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