NOIDA (CoinChapter.com) — El Salvador’s Bitcoin purchases are now in the black, President Nayib Bukele boasted in a social media post this Wednesday.
El Salvador’s foray into Bitcoin in 2021 represented a bold divergence from the norm. Under President Nayib Bukele’s leadership, the Central American nation took a step no other country dared — adopting Bitcoin as legal tender.
President Bukele’s decision was not just a policy shift but a statement challenging conventional economic wisdom and the status quo of Western capitalism. However, the decision attracted a lot of criticism from different analysts, organizations, and journalists.
El Salvador’s Bitcoin Profits
El Salvador’s venture into Bitcoin started amidst much skepticism from the international community. Critics warned of volatility and potential financial instability. However, El Salvador’s recent announcement of profits from its Bitcoin investments paints a different picture.
The country reported a net profit of $41.6 million from its Bitcoin holdings, showcasing a more than 40% gain. President Bukele strutted on social media about the development. He challenged critics who had questioned the government’s decision to buy Bitcoins for its reserves.
The turnaround came after the recent Bitcoin price rally, validating Bukele’s strategy of holding onto the digital currency through its fluctuations. Although modest in the grand scheme of global finance, this profit is significant for El Salvador.
It’s very telling that the authors of those hit pieces, the “analysts”, the “experts”, the “journalists”, are totally silent now. Remember this, next time they spill lies again about El Salvador.
President Nayib Bukele said
The gains demonstrate the potential for cryptocurrencies to contribute positively to national economies, especially when traditional financial systems offer limited options for growth and innovation.
“Cry Harder,” President Bukele To Schiff
Despite positively demonstrating that Bitcoin can be a store of value for countries even, Bitcoin critics continued to criticize President Bukele.
As the Salvadorian President celebrated his country’s crypto gains on Twitter, noted gold bug and Bitcoin critic Peter Schiff challenged his claims. Schiff suggested that President Bukele sell El Salvador’s Bitcoin holdings and realize the profits before talking about them.
The El Salvador President replied, advising Schiff to “cry harder.”
Since El Salvador adopted Bitcoin as legal tender, Schiff and Bukele have taken several jibes at each other. For instance, in Jan. 2022, Schiff shared another social media post, claiming something on the lines of “Bitcoin bad, Gold good, Nobody loves BTC”— the gold bug’s usual rant.
Later that year, a bank that Peter Schiff owned was shut down by Puerto Rican authorities. President Bukele took the opportunity to reply to Schiff’s 6-month-old post with a cheeky, “How’s your bank going?“
Criticism of the Nayib Bukele’s Bitcoin Decision
The Salvadoran government’s decision to invest in and adopt Bitcoin as legal tender was met with substantial criticism. International bodies like the International Monetary Fund (IMF) expressed concerns over the move’s macroeconomic, financial, and legal implications.
Adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis
Gerry Rice, an IMF spokesman, had said.
Economists and financial analysts pointed out the risks associated with cryptocurrency’s volatility. Furthermore, the practical adoption of Bitcoin faced hurdles, with reports indicating that a significant portion of the population and businesses hesitated to embrace cryptocurrency for daily transactions.
Critics also highlighted the broader challenges of integrating a digital currency into a nation’s economy, questioning the long-term viability and impact on financial stability. The recent profits from Bitcoin investments counter the criticism and skepticism from Western financial institutions and economies.
However, the true measure of success will depend on the long-term impact of this initiative on El Salvador’s economic stability, financial inclusion, and the broader acceptance of cryptocurrencies.
