El Salvador's Bitcoin Bet Pays Off With 40% Profit, And They Don't Sell
Speaking at the Conservative Political Action Conference (CPAC) in Maryland this week, El Salvador President Nayib Bukele predicted the collapse of the US dollar. He warned that America's policy of money printing was unsustainable and would inevitably lead to a loss of confidence in the currency.
Bukele's comments come as the BRICS nations have been moving away from using the dollar in international trade. Meanwhile, El Salvador has been buying bitcoin since 2021 and Bukele says the country's holdings have increased in value by over 40%. If sold today, El Salvador would book a $41.6 million profit on its bitcoin purchases.
El Salvador was the first country to adopt bitcoin as legal tender. Bukele claims the cryptocurrency program has been a success, with bitcoin donations helping fund the country's citizenship program. El Salvador now holds 2,381 bitcoins, acquired at an average price of $44,292.
Beyond cryptocurrency, Bukele's tough policies against gangs and crime have made him popular in El Salvador. The country has gone from having one of the highest murder rates in the world to being one of the safest countries in Central America.
However, Bukele's methods have raised human rights concerns. Amnesty International has accused his government of replacing gang violence with state violence, as an estimated 75,000 people have been detained under his emergency anti-gang measures.
At CPAC, Bukele told the enthusiastic conservative crowd to "put up a fight" against oppressive "global elites" who he says control politics and media. He warned the US could decline like El Salvador once did, urging Americans to take their country back.
Bukele is a controversial but popular figure, winning re-election in a landslide this month. While criticized by some, his anti-crime policies and bitcoin program have improved El Salvador by some measures. However, his prediction of the dollar's demise reflects broader shifts as more nations look to reduce dependence on the US currency.
