Friday, July 1

How the bitcoin crash has hit El Salvador | Digital Trends Spanish


A real headache has been for the president of The SaviorNayib Bukele, the bitcoin crashsince with this the main economic bet of the country has lost almost 50% of its value.

As confirmed by Bloomberg, “in the year since El Salvador approved Bitcoin as legal tender, the nation has lost nearly $56 million by betting on the digital asset, according to calculations by Bloomberg. It may not sound like much, but for a financially troubled country like El Salvador, every bit counts.”

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The losses now represent more than half of what President Nayib Bukele’s government spent to buy the 2,301 Bitcoin revealed through Twitter announcements.

In any case, the president of El Salvador is not pessimistic, because he believes that this could be a buying opportunity.

You’re telling me we should buy more #BTC? https://t.co/jwvn0A1kTb

— Nayib Bukele (@nayibbukele) June 14, 2022

Bloomberg adds that this bet by the Central American country “highlights a significant risk for investors in the debt of the cash-strapped Central American nation, which has been dragged down by concerns around wide fiscal deficits and a bond of $800 million due in January. El Salvador’s dollar debt is the worst performer in Latin America this year as it struggles to secure new financing via a stalled Bitcoin-linked bond.

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