Home » Nayib Bukele announces Bitcoin prescription for El Salvador: 1 BTC a day

Nayib Bukele announces Bitcoin prescription for El Salvador: 1 BTC a day

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As the first country in the world to adopt Bitcoin (Bitcoin) As legal tender in September 2021, El Salvador will return to buying BTC in a few days after a months-long pause. bear market conditions.

El Salvador President Nayib Bukele announced on November 16th that the Central American country will start buying BTC daily from November 17th. The announcement comes almost three months after the country made its last BTC purchase in July 2022.

El Salvador began buying BTC in September 2021, shortly after making it legal tender. At the time, BTC was in the midst of a bull market, with prices hitting all-time highs every other week, so all the purchases made by the country looked lucrative. However, with the arrival of a bear market by the second quarter of 2022, his BTC purchases in the early days of El Salvador began to look like a gamble and suffered heavy losses.

According to public records, El Salvador currently holds 2,381 BTC with an average purchase price of $43,357. So the country has spent about $103.23 million on buying BTC, and the same BTC is currently worth $39.4 million.

El Salvador Total BTC Purchase History

The announcement of a new BTC buying routine could help El Salvador offset some of its losses in the coming months at a time when the best cryptocurrencies are trading at new cycle lows.

Looking beyond the losses small nations have incurred in buying BTC, the top cryptocurrency has helped significantly reduce cross-border transfer costs, giving a boost to the tourism sector as well.

Related: Bitcoin Decision in El Salvador: Tracking Adoption After One Year

Cointelegraph reporter Joe Hall is currently on the ground in El Salvador, surviving on Bitcoin alone. According to an early update from Hall, BTC is being accepted in most tourist attractions, but his mobile applications and services need further refinement.

BTC adoption in El Salvador may not look very promising at the moment due to the harsh crypto winter. However, if we look at Bitcoin’s price cycle history, countries can easily offset their losses in the next bull cycle simply by maintaining Bitcoin purchases.