El Salvador Plans to Buy More Bitcoin Every Day Despite Losing Millions Already

Nayib Bukele, the president of El Salvador, announced late Wednesday that his government plans to buy one Bitcoin every day starting on Thursday. Gizmodo reports: The current price of one Bitcoin is roughly $16,540, down 1.5% from a day earlier and down 73% from a year ago. Bitcoin was trading at an all-time high of over $68,000 in November 2021 when El Salvador was purchasing large quantities of Bitcoin. President Bukele has already lost El Salvador tens of millions of dollars, according to the latest calculations by Bloomberg News. El Salvador hasn't publicly confirmed how many bitcoin purchases the country has made, but based on Bukele's tweets we can determine he's purchased 2,381 Bitcoin since the start of his experiment. The price for all the country's Bitcoin holdings has totaled $105 million to purchase, according to Bloomberg, while the current worth is roughly $39.4 million. Bukele would've been smarter just holding U.S. dollars as cash, even with annual inflation at almost 8%. Despite declaring Bitcoin an official currency in El Salvador in late 2021, few people are actually using the crypto for purchases in the country. And one of the common reasons cited for declaring it a currency, sending remittances back to the country from abroad, has been a bust as well. Roughly $6.4 billion dollars was sent as remittances to El Salvador from September 2021 until June 2022, but less than 2% of those were in cryptocurrency, according to Reuters. The Bitcoin experiment has also caused El Salvador's credit rating to get knocked down repeatedly, with the country's rating currently sitting at CC, due to the likelihood it will default on bond obligations that are coming due in 2023, according to CoinDesk.

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