El Salvador’s Nayib Bukele tells his Twitter followers to be patient, even as the country’s bitcoin investments have fallen by more than 50% in value
El Salvador’s Nayib Bukele tells his Twitter followers to be patient, even as the country’s bitcoin investments have fallen by more than 50% in value
Falls Below Bitcoin on Sunday main support level of $20,000. On the same day, El Salvador President Nayib Bukele tweeted that investments in the largest cryptocurrency would “extremely increase” after the bears. Market ends.
“I have noticed that some people are concerned or worried about the #Bitcoin market cap. My advice: stop looking at the graph and enjoy life. If you have invested in #BTC then your investment is safe and protected against bear market. Its value will go up a lot later. Patience is the key,” Mr. Bukele tweeted.
The Central American country adopted bitcoin as legal tender in September 2021, when the top crypto was priced at around $50,000. Mr Bukele chose bitcoin to turn El Salvador into a global crypto hub, and bought over 2,000 BTC for the country after deciding to make it legal tender.
He also announced plans to start mining bitcoin using the country’s volcanoes as energy resources. They further planned to issue “Volcanic Bonds” to create “Bitcoin City”. The digital currency reached its peak in November, 2021 before starting its launch.
The “NB Tracker” website calculated that the country is now down 56.72% on its investments, as Mr Bukele paid an average of $45,908.42 per bitcoin. However, Mr Bukele and the country’s finance minister have underestimated the damage.
Finance Minister Alejandro Zelaya reportedly said there were no losses because El Salvador had not sold any of its bitcoins at current prices. “It doesn’t even represent 0.5% of our budget,” he said.
The International Monetary Fund has repeatedly warned El Salvador about the risks posed by the adoption of cryptocurrency as legal tender. These include price volatility, the threat of cybercrime, and the effect of price volatility on daily users.
In early 2022, Mr. Bukele predicted that bitcoin would reach $100,000 by the end of the year.
In addition to bitcoin, El Salvador uses the US dollar as legal tender.