El Salvador lost half of its investments in bitcoin due to the depreciation
As of yesterday, the size of the investments of the El Salvadoran authorities in bitcoin fell due to the depreciation.
The 10 purchases previously announced by President Naib Bukele have a market value of over $51 million, with the largest purchase of 420 bitcoins worth over $59,000 per coin losing almost 63% of its value.
At the same time, Bukele tweeted several times that El Salvador bought the so-called “fall” – a term used by traders to indicate that they took advantage of price fluctuations for quick profits.
The President of El Salvador noted that one of these “falls” was the purchase of 420 bitcoins for a total amount of more than $25 million. They are currently worth $9.5 million.
Both investments and losses are a fraction of the $3.65 billion El Salvador held in foreign exchange reserves as of last month, according to credit rating agency DBRS Morningstar.
In El Salvador, they had to pay each resident $30 in bitcoins to inject money into the budget. This project involved the use of bitcoin as a means of payment. The launch of the cryptogamer was planned for September 7, 2021. However, on the same day, El Salvador’s national bitcoin system crashed. This was due to users complaining about installation problems. Bukele noted that “the problem is relatively simple,” but it requires shutting down the entire system.
Soon after, protests against BTC began in El Salvador. People were afraid of losing control of their finances as this cryptocurrency fluctuates a lot and people cannot control it.