El Salvador loses $12 million on its Bitcoin investment due to the recent market crash that saw Bitcoin fall to levels not seen since a few years ago so let’s take a closer look at today’s Bitcoin latest news.
With the ongoing market slump, El Salvador loses $12 million on its bitcoin investmetns. The buying process and wallets are undisclosed so the exact amount is still unknown but the estimates put the loss at between $10 million and $12 million. El Salvador’s BTC experiment was hailed by some as pioneering and a leading way for other nations to start following. The losses outline the risks involved with crypto investing as well as the given quantities involved and the public manner where the country has gone about business.
Has any of this however unnerved other countries from adopting BTC as a legal tender? El Salvador made history by being the first nation to adopt BTC as a legal tender. In the race to go live, since the move has been quite opposed by some including international agencies like the IMF, we saw warnings that it would interfere with funding negotiations. The private companies including Moody’s and S&P Global spoke with negative implications of the credit ratings. This is not helped by the many problems with the chivo wallet as some users reported identity fraud and others talked about BTC balance disappearing.
Despite all of this, president Buekle remains sure in his support of the BTC experiment. President Bukele showed many instances of buying the dip and based on this, it is estimated that El Salvador holds 1391 BTC which cost over $73 million to acquire. At current prices, the value of holding came in at $59 million and made a $14 million loss with the Bitcoin continuous drop. Last week, Finance Minister Alejandro Zelaya said El Salvador sold BTC but when and how much is still uknown.
Before the current downturn, president Bukele said that BTC will hit $100,000 this year and also said that two other nation-states will adopt BTC as a legal tender in 2022 but remained quiet on which countries those will be. Last week, the investment manager Fidelity released a report on the future trends where they mentioned El Salvador’s approach to BTC which they say represented an opportunity for wealth and prosperity. Fidelity also said that if BTC continues to perform well, other countries will be forced to join El Salvador and the asset managers even described this as a buying a form of insurance:
“We therefore wouldn’t be surprised to see other sovereign nation-states acquire bitcoin in 2022 and perhaps even see a central bank make an acquisition.”
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