The Salvadoran portfolio counts on $20 million in unrealized losses. Bukele has acquired 1,800 bitcoins at an average price that circles $48,000 per unit.
The current balance of bitcoin (BTC) acquisitions revealed by President Nayib Bukele in El Salvador is not as positive as it seems. Although the “losses” will not appear until he sells, Bukele’s portfolio is currently in red figures.
After a new purchase of at least 410 bitcoins at an average close to 36,500 dollars per unit, El Salvador’s BTC reserve stands at a figure of 1,800 units of the first cryptocurrency. The average purchase price would linger around $48,000, according to data from @SalvadorTracker, a Twitter account focused on tracking Bukele’s portfolio in the Central American country.
According to the same source, this purchase would be the president’s first acquisition below the 40,000 per BTC mark. The purchase took effect at the end of last October when he acquired420 bitcoin with the cryptocurrency trading over $60,000 on exchanges.
The president of the first nation that accepted bitcoin as legal tender would have invested about 86 million dollars in installments to date in eight purchases. With the price now at a figure registered in $35,700, about $64 million today’s value of that stock, the loss in value exceeds 25% at this time.
Bukele’s purchases began alongside the establishment of the Bitcoin Law in El Salvador. At that time, the purchase was around 400 BTC at a price of over $50,000. Since then, the Salvadoran leader has maintained an invasive policy of purchasing cryptocurrency.
Irresponsible Management Regarding Bitcoin in El Salvador
While the bitcoin world celebrates Bukele’s accumulation policy, not everything is easy for Salvadorans. At some point last year, the Salvadoran portfolio seemed to be showing green numbers, and the current president highlighted that the profits would serve to build a veterinary hospital and fix at least twenty schools.
Although the money for these works would come from a fund supported by bitcoin but held in dollars, some wonder what could have happened to that money now that bitcoin has crumbled down.
Bukele also spoke about other benefits that, according to what he expresses, El Salvador has due to the acquisitions of bitcoin as legal tender. Specifically, he pointed out the possibility of receiving remittances from abroad without paying additional commissions.
The trust that Bukkele highlighted is a fund of USD 150 million that served to automatically and instantly convert bitcoin to dollars for Chivo Wallet users.
That announcement that Bukele made regarding the creation of these works caused some debate between those who celebrated the decision and those who considered that it was not the best destination for public money.
By: Jenson Nuñez
