El Salvador Makes the Most Money from Bitcoin When BTC Price Reaches IDR 1 Billion

El Salvador, one of the countries that adopts Bitcoin as a domestic payment option. (Photo; Doc. CoinBulteni)

JAKARTA - El Salvador has recorded significant profits from Bitcoin's recent rise. The country led by President Nayib Bukele started collecting Bitcoin in September 2021. El Salvador is a pioneer country in making Bitcoin a means of payment.

President Nayib Bukele dares to implement a strategy of buying Bitcoin regularly despite facing pros and cons due to market fluctuations. With an initial purchase in September 2021 at a price of 51,769 US dollars (equivalent to IDR 738,000,000 in that year), El Salvador has now doubled its reserves to 5,689 BTC. This indicates El Salvador's confidence in cryptocurrencies.

When Bitcoin's value dropped from its peak of 69,000 US dollars in 2021, many people questioned Bukele's policies. However, with Bitcoin prices soaring again in February 2024, by passing the average purchase price of 42,600 US dollars (IDR 663 million), El Salvador is now enjoying significant profits. Based on the latest data, the country has achieved a 55% return on its initial investment.

El Salvador isn't just relying on direct purchases to increase its Bitcoin holdings. Revenue from the innovative citizenship passport program, Bitcoin mining proceeds, as well as other government services are all allocated to increase the country's Bitcoin holdings.

As reported by Cryptopotato, Bukele's government also issued the "Freedom VISA" initiative which was launched in December last year. This also shows El Salvador's commitment to attracting foreign investment through crypto, with a minimum investment requirement of 1 million US dollars (IDR 15.5 billion) in Bitcoin or Tether.

Recently, President Nayib Bukele announced the transfer of the country's Bitcoin assets to physical wallets or hard wallets. This storage place is usually called a cold wallet. El Salvador holds 5,689.68 BTC worth 406 million US dollars (IDR 6.3 trillion).