El Salvador's Bitcoin Gamble Pays Off, Standard Chartered Predicts a Massive Surge in the Digital Assets Market
- DDDOriginal
- 2024-11-11 01:30:13688browse
The week has been a whirlwind of cryptocurrency news, with El Salvador's Bitcoin gamble paying off and Standard Chartered predicting a massive surge in the digital assets market.
El Salvador's government has reportedly made a profit of 81% on its Bitcoin (CRYPTO: BTC) investment, with the country's holdings now valued at $92.44 million.
El Salvador began accepting Bitcoin as a legal tender alongside the U.S. dollar in September 2021. Despite the country's adoption of the apex cryptocurrency, the initiative has been met with mixed reactions and skepticism from some quarters.
However, the country's government has remained steadfast in its pro-Bitcoin stance, continuing to add to its holdings.
According to data from Spotonchain, El Salvador's government has been purchasing one Bitcoin ( BTC ) daily since mid-November last year, with the country's average acquisition price for the year to date at around $42,000.
With Bitcoin trading above $48,000 at the time of writing, El Salvador's governmentが一btc holdings are now valued at around $48,200 each, up from an average acquisition price of around $42,000 at the beginning of 2023.
The country's government began making smaller-scale purchases of Bitcoin in 2021, acquiring 550 BTC in total. However, the country's government shifted to acquiring one Bitcoin daily following the cryptocurrency's decline below $42,000 in November.
El Salvador's government has not disclosed the total amount of money spent on acquiring Bitcoin, but the country's government officials have stated that the initiative has not utilized any public funds.
Instead, the country's government has claimed that the initiative has been financed entirely by the country's trust, which was established to hold profits from state-owned Bitcoin wallets.
Despite El Salvador's government upbeat assessment of the country's Bitcoin strategy, the country's adoption of the cryptocurrency has been met with skepticism from some quarters.
The country's initiative has also faced legal challenges, with the country's Supreme Court temporarily suspending a government decree that mandated businesses to accept Bitcoin in April 2022.
Furthermore, the country's Bitcoin strategy has come under fire from the International Monetary Fund (IMF), which has urged El Salvador's government to reconsider the country's legal status for Bitcoin.
However, El Salvador's government has largely ignored the IMF's pleas, continuing to promote the country's adoption of Bitcoin and other cryptocurrencies.
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