The new all-time high of Bitcoin of USD 68,500 represents a 73% increase from its September lows. The Salvadoran government announced that it would invest the differential of its BTC purchases in hospitals and schools.
Many Salvadorans have received and held the government’s USD 30 Bitcoin (BTC) bonus since September. They have seen their savings revalue thanks to the current bullish rally, which is why the fraction of the cryptocurrency now represents USD 44.4.
The government of El Salvador decided to send the equivalent of USD 30 worth of BTC to each citizen who downloaded the Chivo app. The state created that cryptocurrency wallet to promote the use of Bitcoin in the Central American country.
However, people started receiving the bonus in a month of many corrections for the price of Bitcoin. When the Bitcoin Law entered into force, the cryptocurrency lost 11% of its value in US dollars.
In September, Bitcoin averaged USD 45,562, for which the USD 30 stimulus equaled around 0.00065844 BTC. However, the fraction of BTC would be higher if the credit occurred on the days when the price reached lower levels.
The value of Bitcoin recently hit a new all-time high of USD 68,530. In other words, it rose by 72.9% from its lowest price in September, when it traded for up to USD 39,600 per unit. Taking that price range as a reference, the holders of the Chivo wallet bonus have gained an even greater differential. It has reached 0.00075757 BTC and is currently worth around USD 51.15.
The Salvadoran government has taken advantage of buying the dips, which has helped them make a profit when the price has rebounded. In September, the value of Bitcoin suffered a correction by around 7% from the previous month. That allowed them to send the Chivo wallet bonus to users at a discount.
El Salvador Finances Projects with Earnings from Its Bitcoin Fund
Nayib Bukele, President of El Salvador, has spoken about the benefits of buying Bitcoin when its price drops. He has already announced several purchases of BTC for his country during the corrections. On October 11th, the head of state said that the users who had saved part of the USD 30 bonus had a 40% profit.
The president also announced the construction of a veterinary hospital and the remodeling of 20 schools. He said that his government would finance them with the positive differentials left by the rise in the price of Bitcoin in October. The president announced on Twitter that the Salvadoran State holds 1,120 BTC in its reserves.
Not everything has been positive for the adoption of the pioneering cryptocurrency in the Central American country. There were various failures in the use and configuration of the Chivo wallet, which caused some users to lose their balances. More than 700 people have reported that they have been victims of identity theft. The hackers have used their personal data to claim the payment of the bonus.
The relevance of Bitcoin in the world economy is increasingly evident, of which the government of El Salvador is aware. The latest all-time high the value of the cryptocurrency has reached once again proves its ability to recover from its worst lows.
By Alexander Salazar
