El Salvadoran is holding a lot of losses on its investments inBitcoin because of the ongoing market slump.
The exact amount is not known, because the buying process and wallets are undisclosed. Estimates put the loss between $10 million and $12 million.
El Salvadoran's Bitcoin experiment was hailed as pioneering in so far as leading the way for other nation-states to follow.
The losses highlight the risks involved with investing in criptocurrencies. More so given the volumes involved and the public manner in which El Salvador has gone about its business.
Is there any reason why other countries are not usingBitcoin as legal tender?
The dip keeps dipping when it keeps dipping.
El Salvadoran made history on September 7 by becoming the first nation to adoptBitcoin as a legal tender.
The move has been vehemently opposed in the run up to going live, and has been vehemently opposed by some quarters. International agencies, such as the IMF, warned that it would interfere with funding negotiations. Private companies, including S&P Global and Moody s, spoke of negative consequences for its credit rating.
This isn't helped by teething problems with the Chivo Wallet. President Bukele remains unaffected by all of the above, despite all of the above.
President Bukele has had instances of buying the dip since September. According to it, El Salvadoran has 1,391 BTC, which cost $73.2 million to acquire.
The holdings' value is $59 million, making a $14 million loss over previous estimates due to the decline of the digital currency.
Finance Minister Alejandro Zelaya said last week that El Salvadoran had sold Bitcoins, but when and how much is unknown.
Before the current downturn, President Bukele said thatBitcoin would hit $100,000 this year. He said two other nation-states will adopt BTC as legal tender in 2022. He remained tight-lipped about which countries will be.
A report on future trends was released by investment managers Fidelity last week. They mentioned El Salvadoran approach toBitcoin, which they say represents an opportunity for wealth and prosperity.
The asset managers call this form of insurance a form of insurance. The reverse must also be true. Whereas poor performance will dissuade nations from coming on board.