With Bitcoin surpassing $72,000, El Salvador’s Bitcoin holdings have gained $83 million. Tim Draper, a well-known venture capitalist in Silicon Valley, recently boldly predicted that El Salvador will become one of the wealthiest countries in the world by embracing Bitcoin.
El Salvador became the first country to recognize Bitcoin as legal tender in 2021 and has been buying Bitcoin since September 2021. According to NayibTracker data, with Bitcoin reaching new highs, El Salvador’s current holdings are worth $2.05 billion, with a floating profit of $83.18 million and an unrealized profit of 68.25%.
El Salvador currently holds 2,681 Bitcoins, with a purchase cost of $121,878,278, and an average purchase price of $42,599.89. The last time El Salvador purchased Bitcoin was in November 2022 at an average price of $30,643, purchasing 481 Bitcoins.
President Nayib Bukele, who strongly advocates for Bitcoin policies and was successfully reelected in February, also stated today that El Salvador has received more Bitcoin-related income from other government services, including income from the citizen passport program, income from providing Bitcoin-to-dollar conversion services for local businesses, mining income, and income from other government services.
El Salvador’s embrace of Bitcoin policies
The Salvadoran government has been actively promoting its Bitcoin policies, including the launch of the investment citizenship program in December of last year. By investing $1 million in Bitcoin or USDT, one can obtain residency visas and citizenship. In addition, the $1 billion Bitcoin volcano bond advocated by Bukele has obtained regulatory approval from the CNAD (Digital Assets Committee) and is expected to be issued in the first quarter of 2024.
The volcano bond will be issued through the Bitfinex platform, raising $1 billion in digital token form, aiming to help El Salvador repay its sovereign debt and be used for Bitcoin mining operations, the construction of Bitcoin cities, and other purposes.
Further reading:
El Salvador’s “1 Billion Bitcoin Volcano Bond” to be launched in early 2024! Will be issued through Bitfinex
Tim Draper predicts El Salvador will become the wealthiest country
In this regard, Tim Draper, the founder of Draper Associates and a well-known venture capitalist in Silicon Valley, recently attended a podcast program Web3 Deep Dive hosted by cryptocurrency journalist Rachel Wolfson. He praised El Salvador’s embrace of Bitcoin, stating that Bitcoin is helping El Salvador grow and become a better country, and will determine the country’s fate in the coming years. Tim Draper predicts that if the price of Bitcoin reaches $100,000, El Salvador will be able to repay its debt to the International Monetary Fund (IMF) and no longer need to deal with the IMF. He previously predicted that Bitcoin would reach $250,000 this year and predicted a future bank run, when people will no longer need the US dollar.
Related reports:
El Salvador: Bitcoin “immigration visas” to be sold out by the end of the year, $1 million price is “fair”
El Salvador: Invest $1 million in Bitcoin or USDT for citizenship