At last, Bitcoin has been officially becoming El-Salvador’s official currency along with US Dollar. The most fascinating event of the century, especially in the history of El-Salvador, took place on 7th September 2021 eventually wherein Bitcoin is now available to El-Salvadorans like they are using US Dollar as their national currency. Interestingly, when El-Salvador’s Bitcoin tender became effective, the country was able to buy its first Bitcoin dip fortunately which resultantly increased the value of its Bitcoin holding drastically.
The most anticipated global event finally took place successfully on 7th September 2021, when El-Salvador implemented the Bitcoin legal tender. Now there are two national currencies available to El-Salvadorans. The first one is US Dollar, which is a fiat currency, and Bitcoin (BTC), which is the first virtual currency of the world. Bitcoin’s adoption does not mean that the earlier currency i.e. the USD has been suspended. In fact, both currencies are going to work simultaneously.
Adopting BTC as an official currency in the country, was the idea of the country’s premier, Nayib Okele. It was supported by the Government, however, less than half of the country’s population didn’t like the idea. But the Bitcoin law has come into being and is fully implemented now since 7th September 2021.
El-Salvador’s Government under the leadership of President Okele started to purchase Bitcoins before the law could have been implemented. The acquisition of Bitcoin before the implementation of the law became evidently very fruitful to the country. Unknowingly, El-Salvadoran Government was buying the dip and when the dip was over, the price of BTC skyrocketed. Before the price hike, the Government bought BTCs twice. In the first purchase, the Government purchased 200 units of BTCs. Thereafter, in the second purchase, a further 200 units of BTCs were purchased by the Government.
Unexpectedly before the two purchases, Bitcoin’s price index showed negative performance. Resultantly, there was a major dip which caused a loss of US$ 8,000 in BTC’s value. This means that El-Salvador paid US$ 41,000 approximately against each unit of Bitcoin. However, the value of BTC was around 51,000 when the value decreased surreptitiously.
However, the acquisition of BTCs did not end up there. In fact, there was a further 150 BTCs purchase made by El-Salvadoran Government. This was duly informed beforehand by none other than the country’s premier who tweeted that he was going to purchase 150 coins more.
Currently, El-Salvador’s BTC stash is consisting of a total of 550 Bitcoins. For the time being, BTC value is approximately US$ 47,000. This means that El-Salvador spent approximately US$ 22,550,000/- against 550 BTC acquisition. However, at the present moment, the value of 550 BTCs, under the ownership of El-Salvador, is US$ 25,850,000. The President was even quick to get back on to Twitter and informing the public that the Government had earned profits against Bitcoin purchase.
President Bukele is highly optimistic that Bitcoin will change the country’s future.