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News

El Salvador Bitcoin Investment Hits 6,000 BTC Milestone With Over 108% Return

December 29, 2024 - Around 2 mins mins to read

Key Points:

  • El Salvador Bitcoin investment reached a new milestone with 6,000 BTC, valued at $570 million.
  • Under President Nayib Bukele, El Salvador became the first country to adopt Bitcoin as legal tender.
El Salvador Bitcoin investment has reached a new milestone of holding more than 6,000 Bitcoins in the national reserve.
El Salvador Bitcoin Investment Hits 6,000 BTC Milestone With Over 108% Return

Read more: New El Salvador Bitcoin Purchase Boosted With 11 BTC

El Salvador Surpasses 6,000 Bitcoin in National Holdings

With the most recent purchase of 1 Bitcoin on Dec 29, the country increased its stockpile to 6,000 Bitcoins, currently valued at close to $570 million. El Salvador became the sixth country worldwide with the highest volume of Bitcoin, sliding ahead of major economies like Germany and Sweden.

Above that, in ranking order, are Bhutan, Ukraine, the UK, China, and finally, the United States, which has 200,000 Bitcoins.

In September 2021, El Salvador, under President Nayib Bukele, made history as the first country in the world to adopt Bitcoin as legal tender. The Central American government bought its first 200 Bitcoins and went ahead to increase its stake, reaching an average acquisition cost per Bitcoin of $ 45,465. To date, El Salvador Bitcoin investment has surged in value by over 108%.

Screenshot 2024 12 29 at 12.21.02
Source: Nayib Bukele Portfolio Tracker

Global Scrutiny Grows Over El Salvador Bitcoin Investment

The adoption of Bitcoin has brought its own share of benefits and challenges to the Central American nation. Residents have moved to digital wallets as a parallel to traditional banking- a solution for financial inclusion in a country where the majority of its people did not have access to banking. Other initiatives include the “Bitcoin City,” which was announced late in 2021 and is aimed at increasing cryptocurrency trading and economic activities.

The El Salvador Bitcoin investment has also raised tourism in the country, showcasing it as a crypto-forward destination. However, that move has attracted criticism and warnings from international organizations, which have come out against the move. The IMF has warned of the risk to financial stability.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.