El Salvador was the first country to declare Bitcoin to be a legal tender. However, the decision has not been well received in the country. Then, the situation is expected to worsen in 2022 as the value of BTC plummets. Over the course of a few weeks, BTC has lost 17.5 percent of its value. The value of the bitcoins held by the Salvadoran government is $59 million.
According to a recent Bloomberg calculation, El Salvador’s BTC experiment has resulted in more monetary losses than gains.
The country has around 1,391 bitcoins, according to President Nayib Bukele’s Twitter tweets. The value of this total investment would be roughly $71 million at the current price of BTC. Of course, which is around $51,056 per BTC.
Given that Bitcoin prices have plummeted by 17.5 percent in the last few weeks. That’s, the total value of the bitcoins held by the Salvadoran government is now $59 million.
In other words, the value of the nation’s BTC reserve has declined by $12 million in public dollars. These figures, however, are only on paper if the country has not sold or given up any of its bitcoin. hich is both its legal tender and the world’s largest cryptocurrency by market capitalization.
Much of what has been said thus far is hypothetical. That’s, due to the lack of transparency surrounding bitcoin reserves, transactions, and policies.
The country, however, appears unfazed by the failures and is planning to issue $1 billion in Bitcoin bonds in any case. According to El Salvador’s finance minister, Alejandro Zelaya, the government has developed 20 laws to establish the legal and financial framework for these bonds.
El Salvador has put out the red carpet for Bitcoin, inviting the cryptocurrency to mine in the country’s enormous geothermal energy resources. BTC mining has recently come under fire due to its excessive energy consumption and carbon emissions. If accepted, the aforementioned offer will be beneficial to both BTC and El Salvador.