Through his X (Twitter) account, Bukele shared a message that raises the question: Why don’t we sell our Bitcoin? If the country decided to sell all of its Bitcoin now, it could not only recover 100% of its investment. It would also have estimated profits of $7 million, however the strategy is long-term.
The President of El Salvador, Nayib Bukele, has made clear his commitment to the Bitcoin strategy for the country in a recent BTC rally.
Through his Twitter account, Bukele published an intriguing message: “Why we don’t sell our Bitcoin? Why don’t we sell our Bitcoin? accompanied by a revealing video that provides the most compelling explanation to date of the Bitcoin strategy adopted during his presidency.
The Million Dollar Question: Why Does El Salvador Not Sell Its Bitcoin?
In the 3:33 minute video, the question many have been asking was directly addressed: Why isn’t El Salvador selling the Bitcoins it has been accumulating? The answer, although simple, reveals a long-term vision and unique understanding of how Bitcoin can transform the country’s economy.
The Salvadoran president explains that if the country decided to sell all of its Bitcoin now, it could not only recover 100% of its investment, but also make an additional profit of $7 million. However, he emphasizes that true profits do not come from trading operations, but from a more holistic strategy.
In this sense, the adoption of Bitcoin in El Salvador would have been a gradual but effective process. The implementation of the Bitcoin Law has allowed the banking of a significant percentage of the population.
On the other hand, those who continue to use Bitcoin benefit by avoiding the costs associated with remittances by receiving payments in BTC. Since a significant part of the Salvadoran economy depends on remittances, this measure has had a direct impact on improving the financial situation of many citizens.
Furthermore, the video highlights the benefit derived from Bitcoin mining in the country. The volcanic bonds project takes advantage of surplus geothermal energy from volcanoes to increase the national Bitcoin reserve.
This project not only seeks sovereignty in terms of external debt. But it also positions El Salvador as a key player in Bitcoin mining, using natural resources in an innovative way.
El Salvador’s Response to Bitcoin Critics
Bukele also acknowledges that although the world of cryptocurrencies is not free of volatility, Bitcoin has shown to have a broad upward trend over time, citing the example of pizzas.
The video points out that El Salvador has chosen to maintain its Bitcoin reserve. Looking to the future and preparing to face possible global economic crises. Bukele highlights that the long-term benefits will far exceed the immediate gains from a sale.
Bukele points out that when the price of BTC was low, there was speculation about the possibility of the country falling into default. However, now that the price has increased, those same critics are silent.
Despite criticism, the Salvadoran government has continued with its DCA strategy to acquire 1 BTC per day. This was announced by Nayib Bukele himself in November 2022. In addition, the Central Reserve Bank of El Salvador reveals that there are already more than 100 Bitcoin service providers. Debunking unfounded claims that “no one uses Bitcoin.”
It was also recently announced that El Salvador will give a special visa for Bitcoin and USDT investors who have contributed at least one million dollars to the development of the country.
By Leonardo Perez