In an exchange on El Salvador, which was the first country to adopt Bitcoin as legal tender in September 2021, has seen significant growth in its Bitcoin investments year-to-date.
Elon Musk is impressed by Bitcoin’s performance
President Bukele posted a screenshot detailing the country’s Bitcoin holdings after the price soared past $100,000. The current balance is $603,340,991.00 USD, which represents the market value of approximately 6,000 BTC owned by El Salvador. Since January 1, there has been a 117.74% increase in the value of these properties, indicating growth of over 117% year to date. The total profit from the investment is $326,245,977.98, exceeding the initial investment by 123.67%.
Notably, El Salvador did not sell any of its Bitcoin holdings, as evidenced by the realized profit of $0.00. The unrealized gain, which represents potential gain if the property is sold at current market value, is $333,597,190.20. The total amount initially invested in Bitcoin is $269,743,800.80. The portfolio saw a high of $603.34 million and a low of $24.77 million, demonstrating significant volatility and appreciation over time.
Musk reaction This financial update was brief but important: “Impressive.”
This interaction is not the first between Musk and Bukele on social media. On October 29, President Bukele highlighted a series of positive developments in El Salvador during his presidency. He cited lower crime rates, food prices, immigration, government spending, deficits, and tax rates. At the same time, he reported increases in Bitcoin value, economic growth, tourism, foreign direct investment, construction, power generation, military strength, international image, country risk ratings, bond performance, approval ratings, revenues, and soft power.
Musk He responded To this list with: “Very impressive.”
El Salvador’s move to adopt Bitcoin has been a topic of global interest and debate. The country’s adoption of Bitcoin is aimed at promoting independence from the International Monetary Fund and attracting foreign investment. Large unrealized profits indicate that this strategy yields significant financial benefits.
Meanwhile, Tesla’s relationship with Bitcoin has been dynamic. The company initially bought approximately 42,902 BTC but announced in July 2022 that it had sold 75% of its holdings, reducing its total to approximately 11,509 BTC. Despite this reduction, Tesla’s Bitcoin holdings still exceed those of El Salvador.
However, Musk’s last post on Bitcoin where he used “Bitcoin” or “BTC” directly was a long time ago. On November 14, 2022, Musk wrote: “Bitcoin will succeed, but it may be a long winter.” This post came at a time when Bitcoin fell to $16,000 after the FTX crash.
At press time, Bitcoin was trading at $102,405.
Featured image from YouTube, chart from TradingView.com
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