The Salvadoran Bitcoin portfolio is in the red, but the dilemma goes beyond the price of the pioneering cryptocurrency. Many citizens wonder whether the end justifies the means, referring to the incorporation of Bitcoin in the Salvadoran economy by Bukele.
Many people received the news that the Bitcoin portfolio bought by Bukele in El Salvador is in the red angrily. He acquired the cryptocurrency at an average price close to USD 48,000, and it is now trading below USD 40,000.
Some said that analysts should not speak of losses for not selling BTC while wondering whether they would say when Bukele is in profit. They will do it in the future, the same as they have done it in the past.
The problem with that view is that not discussing losses would imply not mentioning gains either. However, they could know of some sales at a price hike that the president has made without anyone else knowing.
Bitcoin Does Not Justify the Means
The issue goes beyond the current price or the color that the graph might impose on the purchases by Bukele. That is a matter of approach and management of public money, as many people do not like that seemingly arbitrary investment.
Salvadorans have the right to question the steps their president takes with the nation’s money. Many think their president handles money like a macroeconomic gambler. Bukele said he might have missed the dip but reported that he bought when the price fell a little more.
Bitcoiners see the Central American president as a visionary hero for incorporating Bitcoin into the Salvadoran economy. They do not seem to question custodian wallets in the hands of companies both external to the state and foreign.
Not many people seem to be uncomfortable with the many failures of the tools created by the government to manage the pioneering cryptocurrency among citizens. The math of Salvadoran bitcoiners is simple as they consider that the adoption of Bitcoin justifies the means.
Putting the Figures in Perspective
Currently, figures are not at stake to bankrupt El Salvador with the so-called Bitcoin experiment. However, denying a high risk in that bet is against the maxim of entering with money the investor will not need.
The ability to answer for actions taken in the name of a greater good, among other things, implies responsibility. That is one of the other primary problems of the management of Bukele regarding the investment in BTC. Salvadorans do not have another choice but to fully trust his word, as Bitcoin provides the transparency they demand from their ruler.
A public address anyone could audit through a block explorer would make it possible to confirm whether El Salvador has the 1,801 bitcoins that Bukele has bought. The operations with the cryptocurrency have been so dark that the entire community wonders where the BTC of El Salvador is.
Cryptocurrencies play a crucial role in the economy, evident in countries like El Salvador. The government of Nayib Bukele adopted Bitcoin as legal tender in 2021, which led many analysts and organizations to lash out at him. However, the Central American head of state has kept buying the crypto asset to include it in the national coffers.
By Alexander Salazar
