It seems a lot like yesterday, when Nayib Bukele, the El Salvadoran president announced that the country was making Bitcoin legal tender.
The internet became abuzz almost instantly, with some praising El Salvador for its bold step as a Bitcoin pioneer, and others hurling criticism for such a "risky" experiment.
These criticisms became even worse in the thick of the previous bear market.
Fast forward to less than two years later, and the Central American nation is now enjoying a hefty $12.6 million in unrealized profit from its Bitcoin investments.
Here are all the details.
In September 2021, El Salvador made history by being the first country to formally acknowledge Bitcoin as legal tender, alongside the US dollar.
Its President, Nayib Bukele led the initiative, claiming that Bitcoin would bring in international investment, increase financial inclusion, and lower remittance costs for millions of Salvadorans.
Over two weeks, the El Salvadorian government bought as much as 700 units of Bitcoin at an average price of $50,000 each, and a total price of $35 million overall.
El Salvadorians as well as outsiders protested initially, kicking violently against Bukele's decision.
To add fuel to the fire, the Bitcoin bear market came along, slashing the price of Bitcoin from $50,000 to as low as $15,000 by the end of 2022.
Things looked very terrible for El Salvador at the time, with its Bitcoin holdings being worth only a fraction of their initial price.
Millions of dollars had gone down the drain. However, despite the setbacks, El Salvador did not give up. Instead, it kept on buying more Bitcoin units.
And by November 2022 when Bitcoin was at its lowest, the country had amassed 2,798 Bitcoin at an average price of $42,440 per unit.
At the time, its Bitcoin portfolio had a total estimated worth of $76.7 million.
Enter 2023.
Bitcoin returned to action and started to rally from January, until October. By October, Bitcoin's price explosion became even more pronounced, bringing Bitcoin from a yearly low of about $15,000 to a little under $45,000 in a 160% price increase.
In January 2024, Bitcoin first hit $47,000, a level not seen since May 2021, marking a 168% price increase from its lowest point in November 2022.
As it turns out, El Salvador's Bitcoin holdings have also increased significantly, hitting a total of about $126.3 million according to NayibTracker.
In essence, this means that Bukele and El Salvador's holdings now sit at a 6% increase, as well as an unrealized profit of $12.6 million.
The Bitcoin success story in El Salvador demonstrates the cryptocurrency's potential as a reliable medium of trade, store of value, and driver of economic growth.
The country's Bitcoin experiment has shown that countries all over the world can overcome the possible challenges that arise with the adoption of Bitcoin and that there are potential benefits for everyone.
The Bitcoin economy in El Salvador is still in its infancy. This means that there is still a lot of room for improvement.
The El Salvadorian government has also mentioned plans, according to Reuters, to build a geothermal Bitcoin mining project, increase the number of Bitcoin ATMs it has installed, and offer incentives to tourists and citizens who hold and transact with Bitcoin.
Overall, the future of Bitcoin and that of El Salvador appears bright, from whichever angle we choose to look from.
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