Elon Musk recently gave El Salvador’s Bitcoin holdings a big thumbs-up. After President Nayib Bukele shared an update showing El Salvador’s Bitcoin wallet balance, Musk simply tweeted “Impressive.”
El Salvador’s Bitcoin Success Story
El Salvador made headlines in 2021 by becoming the first country to adopt Bitcoin as legal tender. Their Bitcoin investment has seen massive growth. Here’s the breakdown:
- Current Holdings: Around 6,000 Bitcoin, worth about $603 million.
- Year-to-Date Growth: A whopping 117.74%!
- Total Profit (Unrealized): $333.6 million. This is the potential profit if they sold their Bitcoin now. They haven’t sold any yet.
- Initial Investment: $269.7 million.
- Portfolio Volatility: The value of their holdings has swung wildly, from a high of $603.34 million to a low of just $24.77 million.
Musk’s Repeated Praise
This isn’t the first time Musk has praised Bukele’s Bitcoin strategy. Earlier, Bukele shared a list of positive economic developments in El Salvador, including growth in Bitcoin value and tourism. Musk responded with “Super impressive.”
El Salvador’s Bitcoin Goals
El Salvador’s aim in adopting Bitcoin was to reduce reliance on the International Monetary Fund (IMF) and attract foreign investment. The huge unrealized profits suggest this strategy might be working.
Tesla and Bitcoin: A Different Story
It’s interesting to compare El Salvador’s Bitcoin journey to Tesla’s. Tesla initially bought a significant amount of Bitcoin, but later sold off a large chunk. Even after the sale, Tesla still holds more Bitcoin than El Salvador. However, Musk hasn’t tweeted much about Bitcoin recently. His last significant tweet about Bitcoin, back in November 2022, predicted a long, tough period for the cryptocurrency.
Currently, Bitcoin is trading at around $102,000.
