Bitcoin reached a major milestone on Dec. 5, 2024, crossing the $100,000 threshold for the first time. The cryptocurrency’s historic surge ignited celebrations across the global crypto community, including in El Salvador, the first country to adopt Bitcoin as legal tender. President Nayib Bukele, a vocal Bitcoin advocate, seized the moment to spotlight the nation’s Bitcoin portfolio and its remarkable performance.
Bukele Shares El Salvador’s Bitcoin Gains
In response to a social media post from crypto account Autism Capital urging him to showcase the country’s Bitcoin success, Bukele shared an update on El Salvador’s Bitcoin holdings. The country has invested nearly $270 million in Bitcoin since embracing the cryptocurrency in 2021. According to Bukele, El Salvador has not sold any of its 6,180 BTC, and unrealized gains have now surpassed $333 million.
El Salvador made history on Sept. 7, 2021, when it became the first country to recognize Bitcoin as legal tender under its groundbreaking Bitcoin Law. A day prior to the law’s enactment, the government purchased its first 200 BTC. Since then, the country has continued to expand its holdings, adopting a dollar-cost averaging (DCA) strategy in November 2022 to buy one Bitcoin daily.
Nayib Tracker, a platform monitoring the country’s Bitcoin investments, estimates the average purchase price at $44,739.88 per Bitcoin. With Bitcoin now valued at over $100,000, El Salvador’s Bitcoin portfolio has increased by 122%.
Beyond Profits: Bitcoin’s Broader Impact
The financial gains are only part of the story. El Salvador has also seen significant boosts in tourism and international attention since adopting Bitcoin. Bukele’s government has actively promoted the cryptocurrency as part of its strategy to position the country as a hub for Bitcoin innovation.
Despite the reported benefits, El Salvador’s Bitcoin policy has drawn criticism from the International Monetary Fund (IMF). The IMF has repeatedly urged the country to reconsider its stance, citing risks to financial stability.
In January 2022, the IMF recommended that El Salvador cease recognizing Bitcoin as legal tender, warning of potential economic vulnerabilities. More recently, in October 2024, IMF spokesperson Julie Kozack suggested narrowing the scope of the Bitcoin Law and reducing public sector exposure to cryptocurrency.
