El Salvador’s biting bitcoin
El Salvador’s president has asked the country’s citizens to exercise patience in the face of the cryptocurrency market’s unending slide.
What’s patience got to do with the slide?
After the price of Bitcoin fell below $20,000 — less than half the price the government paid while acquiring the cryptocurrency, President Nayib Bukele, via his Twitter handle, reassured those who invested in the market that their investment was safe, urging them to ignore the slide and ‘enjoy life’. “Patience is the key,” he said in a tweet on Saturday.
How is their investment safe?
The president based his reassurance on the widely held notion that after the dip, prices are expected to rise, even beyond previous highs. “I see that some people are worried or anxious about the #Bitcoin market price,” Bukele tweeted. “My advice: stop looking at the graph and enjoy life. If you invested in #BTC your investment is safe and its value will immensely grow after the bear market”, he added.
How much has the government lost so far?
Bukele’s administration has reportedly spent about $105m on Bitcoin, starting in September 2021, and paid an average of about $46,000 per coin. About 57%, around $61m, of the value of that investment has now been lost. While most governments showed restraint, Bukele displayed unrivaled faith in the cryptocurrency by making Bitcoin legal tender, becoming the first leader to do so.