The president of a country posted his investment report on social media, and the return rate was as high as 133%! This is not a science fiction movie, but a real story that happened in El Salvador. Salvadoran President Nayib Bukele announced the country's Bitcoin investment portfolio today, showing that the country's current Bitcoin holdings are worth $632.6 million, with unrealized gains of $362.2 million, and an astonishing return on investment of 133.95%. Are you also curious whether the local people also made a fortune?
As Bitcoin hits a new all-time high, this small Central American country has once again become the focus of global attention. This morning, the price of Bitcoin once broke through the $106,600 mark. Since the victory of the Republican presidential candidate Trump in the United States, Bitcoin has risen for seven consecutive weeks. Some institutions even predict that the price of Bitcoin is expected to reach $120,000 before Trump's inauguration in January.
Under the active promotion of Nayib Bukele, El Salvador officially listed Bitcoin as legal tender in September 2021 and launched a series of Bitcoin policies, including a daily investment of 1 Bitcoin. According to data platform Arkham, with unremitting efforts, El Salvador currently holds 5,966 Bitcoins, with a holding value of more than US$600 million.
However, although El Salvador is the first country in the world to list Bitcoin as legal tender, local people do not seem to hold Bitcoin for a long time. The Associated Press previously reported that although the Bugre government provided $30 in Bitcoin to those who registered for the country's digital wallet, many people quickly cashed out the Bitcoin. In response, Bugre criticized that this was the opposition making trouble.
So, have ordinary people in El Salvador really not benefited from Bitcoin? Not entirely. Although most people have not held Bitcoin for a long time, it is clear that some Salvadorans with economic resources have already invested in Bitcoin before, but they are a minority. Moreover, for the Salvadoran government, although the gains from holding Bitcoin have not yet been realized, they are already a considerable fortune.
However, it is worth noting that the Salvadoran government had previously hoped to obtain a credit line from the International Monetary Fund (IMF) to solve its fiscal problems, but the IMF asked El Salvador to amend its Bitcoin bill, saying that Bitcoin's legal status is the main obstacle to the country's access to credit support. The negotiations between the two sides have been deadlocked for two years. Recently, it was reported that El Salvador is negotiating with the IMF to cancel the legal requirement that forces companies to accept Bitcoin as a payment method in exchange for a $1.3 billion loan from the IMF.
This makes people wonder: Are there some unknown concerns behind the craze for Bitcoin investment in El Salvador? For ordinary investors, does the volatility of Bitcoin mean huge risks?
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