El Salvador’s national bitcoin reserves fell more than 47%. Some Salvadorans are worried about how the administration will deal with the losses.
The potent Crashdown in the cost of bitcoin (BTC) to USD 20,800, its lowest in 18 months, increased the concerns of various Salvadoran citizens. Through Twitter, many inhabitants raised their voices against President Nayib Bukele for using part of the national reserves to purchase digital assets.
According to this panorama, the Salvadoran journalist born in Spain, Roberto Valencia, expressed that it is hard to imagine how those who acquired bitcoin must feel when it was at USD 60,000 seven months ago, and now it fell below USD 30.000.
Along with this message, the journalist revealed a tweet from President Nayib Bukele from October of last year highlighting that they had acquired bitcoin on the dip (the fall). The digital currency danced near its historical maximum at USD 67,800, for which such a decision made the administration lose a lot of money.
El Salvador Lost at Least 47% of the National Reserves
El Salvador counts on 2,301 bitcoins registered at $44,189, according to SalvadorTracker. That means the Salvadoran administration has invested $101,678,889 in cryptocurrency and is currently facing considerable losses.
With BTC crumbling to $20,800, the Salvadoran reserves in Bitcoin run parallel to $47,860,800. El Salvador is facing an unprecedented loss of USD 53,818,089 in bitcoin, which implies that they have lost 47% of its previous investment.
Although other sources determine that the average price of bitcoins that El Salvador holdings is USD 47,434. For this reason, they maintain that the unrealized losses are now more prominent, above 50%.
However, it is worth clarifying that El Salvador has not sold its bitcoin reserves and plans to hold them in the future. If the price of BTC reaches a higher peak than what they used to acquire the currency, their funds will grow. This action is the goal Nayib Bukele is aiming for, who has not commented on the severe fall that the cryptocurrency is facing this week.
Bitcoin Crash Increases Uncertainty about the Strategies Intended for El Salvador
Another person who expressed her concerns with the move to acquire bitcoin was the political scientist Ines Martínez, president of the NGO D’Politic of El Salvador, which sides with democracy, human rights, and the active participation of citizens in the political environment.
She said he promised 50 schools with the profits from bitcoin, but all he did was lose more than USD 50 million to date funds from the Salvadoran citizens.
On the other hand, the current bitcoin bear market still creates an uncertain atmosphere in the crypto space and the Salvadoran population because they would not know how the government will face the public expenses that would attack the economy. In addition, the investment that they expected to gain with the issuance of the volcano funds got stopped until the price of the digital asset balances.
By: Jenson Nuñez
