Hello, crypto enthusiasts and advocates of Bitcoin adoption: El Salvador’s President Nayib Bukele has shared with the public the Bitcoin portfolio performance of the nation as it reached an all-new high of $100,000 per coin. The announcement features the small country setting forth the bold and somewhat controversial move to use Bitcoin as a legal tender in 2021.
To the cheering crowd gathered in the capital, San Salvador, President Bukele termed the event as a historic affirmation of the administration’s progressive thinking in economic policies. “When we decided to adopt Bitcoin, we faced skepticism and criticism from all corners of the world,” Bukele said. “Today, El Salvador is proof that innovation and courage can lead to transformative growth.”
A Risk Worth Taking
Three years ago, El Salvador became the first country to officially adopt Bitcoin as a legal tender. The ruling was revered, particularly by cryptocurrency enthusiasts but drew much caution from mainstream financial institutions. And it would have the “Chivo Wallet” application opened and would build Bitcoin ATMs in different parts of the country. Critics, however, have thrown jabs citing risks such as financial instability and volatility evidenced within the cryptocurrency coins.
Initially, the loss of value from Bitcoin’s bearish market did not hinder El Salvador from keeping faith with the crypto. It is said that through wise purchases at the dips, it has now amassed a portfolio of more than 4,000 Bitcoins at an average cost of $28,000 per coin.
With more than $100,000 per Bitcoin now, the country’s portfolio is over $400 million, putting it on a rapid increase in national reserves.
Economic Impacts and National Projects
Perhaps the most important project financed by Bitcoin income is the “Bitcoin City” initiative, which plans to develop a tax-free, futuristic hub for cryptocurrency innovation fueled entirely by geothermal energy from the Conchagua Volcano. Initially stalled, the initiative has now picked up pace and is scheduled to be inaugurated in the early part of 2025 for its first phase.
Another promotion is the fact that Bitcoin has added to the benefits of tourism. Crypto tourists are flocking to El Salvador just to see how digital assets have become a part of everyday life. According to government estimates, tourism revenues have risen by over 30 percent since 2021.
Global Reactions
The reactions towards Bitcoin attaining a milestone of $100,000 and El Salvador’s role in its adoption have been mixed. Supporters hail the country as pioneering, led by crypto luminaries like Michael Saylor and Cathie Wood, who congratulate Bukele for his foresightedness. On the contrary, there are critics, such as the International Monetary Fund (IMF), who still warn of relying so heavily on such volatile assets.
Economist Alicia López warned, “While this is a historic moment for El Salvador, Bitcoin volatility is a risk. The government must be careful about reinvesting earnings and diversifying its portfolio.”
The Road ahead
On the one hand, El Salvador is an inspiration as well as a stark warning to the wider world. President Bukele ended his speech with a clarion call: “We are writing history—not just for El Salvador but for the world: The future is Bitcoin, and we are at the forefront.”
So as Bitcoin continues to rise in value, and as the country’s portfolio continues to grow, all eyes remain on the little Central American state to see whether this gamble will indeed reconsider the course of its social and economic destiny.
