El Salvador’s President Rejoices Over 127% Gains as Bitcoin Surpasses $100K

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As a seasoned researcher with a keen eye for global financial trends and a soft spot for the underdog, I must admit that Nayib Bukele’s bold move to adopt Bitcoin as legal tender for El Salvador has caught my attention like no other recent event in the crypto sphere.

Nayib Bukele, President of El Salvador, celebrated as Bitcoin, the world’s largest digital currency, surpassed the $100,000 price mark for the first time, reaching a market capitalization of $2 trillion. Remarkably, El Salvador has been acquiring 1 BTC per day for several months now, positioning itself to reap substantial profits.

On the popular social media platform X (previously Twitter), President Bukele shared a glimpse of El Salvador’s crypto wallet to his 6.7 million followers. In the snapshot, it is evident that the nation holds an impressive $603,340,991 in Bitcoin, marking a significant 117% increase Year-to-Date (YTD). The strategic move to integrate Bitcoin into El Salvador’s financial records has resulted in the country owning approximately 6,178 Bitcoins, as data from Nayibtracker confirms.

In summary, El Salvador has so far invested a total of approximately $269.74 million in Bitcoin, with an additional unrealized gain of around $333.59 million. This portfolio’s value has been on a steady rise since the crypto winter of 2022. Notably, Elon Musk, CEO of Tesla and a billionaire, has praised President Bukele’s strategy as “impressive.” The broader digital asset community also commends President Bukele for his boldness in adopting Bitcoin even during challenging times.

As a researcher, I find it noteworthy to highlight that back in November 2022, President Bukele announced El Salvador’s plan to purchase one Bitcoin each day. At that moment, numerous X users mockingly criticized the nation’s approach, expressing doubts about the longevity of Bukele’s commitment to Bitcoin. Moreover, earlier this year, even the International Monetary Fund (IMF) cautioned against El Salvador’s potential risks in terms of exposure to Bitcoin.

Back in the time when El Salvador initially invested in Bitcoin, its value was approximately $36,000. Since then, it has soared to reach an all-time high of $103,900.47 and a whopping $2 trillion market cap. Additionally, Bitcoin’s influence within the market has grown significantly, with its dominance climbing up to 54.5%, as the crypto-friendly election of Donald Trump maintains its momentum, driving prices even higher.

El Salvador has been making significant strides in embracing Bitcoin, from Bitcoin bonds to Bitcoin mining powered by thermal energy. Notably, they have launched a “Bitcoin Education and Certification Program” under the supervision of the National Bitcoin Office (ONBTC). The aim is to educate more than 80,000 public officials about this digital currency.

What’s Next for Bitcoin?

Discussions about Bitcoin emerging as a strategic reserve currency are occurring across the U.S., especially with the pro-cryptocurrency administration of Trump in power. As many as ten states within the U.S. have announced plans to introduce legislation that would recognize Bitcoin as legal tender, and businesses such as Hut 8 and others are actively purchasing Bitcoin for strategic reserve purposes.

When Bitcoin surpassed $100,000, the president-elect offered congratulations for the digital asset sector. Meanwhile, Binance co-founder and former CEO Changpeng Zhao (CZ) highlighted that while both fiat currencies and Bitcoin have value, due to inflation, fiat money loses value compared to the world’s largest cryptocurrency by market capitalization – Bitcoin.

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2024-12-05 21:54