#ElSalvador , the world's first state-owned bitcoin (BTC) hodler, is now seeing the fruits of a bold investment strategy proposed by the country's leadership. Recall that on November 18, 2022, when bitcoin cost only $16,700, President Nayib Bukele announced plans to buy 1 $BTC
every day. In 2 years, the country managed to accumulate 722 digital coins with an average price below $42,000. Now the authorities' total portfolio is valued at $450.23 million, and the profit since the given is an impressive $24.54 million, which is equivalent to 81% growth.
Getting the timing right was an important factor. At the time of the announcement of this decision, bitcoin was at a historic low for several years. A stable buying strategy helped diversify and mitigate risks, as the #BTC☀ price was showing volatile fluctuations. It is worth noting that this is not the first investment by the authorities of El Salvador. They actively started buying up digital coins in September 2021, when the exchange rate of the flagship cryptocurrency exceeded $50,000
As the bitcoin exchange rate rose and approached the $76,000 mark, El Salvador's portfolio is becoming an example of how smart investing can yield long-term results. However, critics have previously warned that investing in the cryptocurrency could expose the country's budget to significant financial risks, especially if the market fails to meet expectations.
Interestingly, BTC's positive momentum strengthens President Bukele's position and could serve as an example for other countries. Supporters of digital assets see El Salvador's success as a confirmation of cryptocurrency's sustainability as a store of value. Nevertheless, the volatility of the market is a reminder of the possible problems that could arise with a new drop in prices.