TL;DR Breakdown
• The government of Nayib Bukele could be holding over 1,391 Bitcoin.
• El Salvador will recover from the economic crises after the BTC price rise.
El Salvador could be experiencing a serious economic crisis after adopting Bitcoin as legal tender. According to Bloomberg, the pro-cryptocurrency government of Nayib Bukele is losing around $12 million in public funds since adopting Bitcoin.
Cryptocurrency trading is identified as being very volatile, so taking accelerated measures could lead to economic failure. Since September 2021, El Salvador, supported by its president Nayib Bukele, accepted Bitcoin with an investment that has caused more losses than gains, according to reports.
Country in Central America is affected by the fall of Bitcoin
El Salvador became the main country to accept Bitcoin as legal tender. According to reports, Nayib Bukele used national funds to purchase some 1,391 BTC at a value of $51,056 in September 2021.
In months after the massive Bitcoin purchase, the country profited from the historic rise of the token registered in October when it reached almost $67,000. However, BTC fell to almost $40,000 per token in the first weeks of January 2022.
According to the figures shown by the financial advisor, after the purchase of Bitcoin in the Latin country, some $12 million in public financing have been lost. This could trigger another wave of protests among some Salvadoran citizens who disagreed with the Bitcoin adoption.
El Salvador could recover from losses
Although the crypto outlook in El Salvador looks bleak, some experts suggest that the country in Central America could recover. After spending the tensest weeks in the cryptocurrency market, it can be seen that Bitcoin has risen in price to over 2.83 percent in the last seven days. The crypto achieves a value of $43,437, which shows a slow, but safe recovery.
El Salvador has been criticized for accepting Bitcoin as a legal currency because a central authority does not regularize the virtual currency. Yet another group embraces Bitcoin trading, calling Bukele a visionary president.
In the coming months, the country could recover its financing after Bitcoin reaches new charts of ATH. The leading cryptocurrency has been present in several developments in the United States and some countries in the Middle East, so its price rise is inevitable. Just waiting for Bitcoin to show the progress that, according to speculators, will occur shortly.
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