The president of El Salvador wants to be reassuring in the current bear market

Salvadoran president responds to ‘bear market’ concerns

While Bitcoin (BTC) has corrected sharply in recent weeks to pass below $20,000 for the first time in 18 months, the President of El Salvador, Nayib Bukeleis widely criticized for investing heavily in the highly speculative cryptocurrency market.

Today, the country’s bitcoin wallet suffers a multimillion-dollar loss, bringing it close to default. But the president of the country, still very “crypto-friendly”, wants to be reassuring about the growing concerns of investors about the future of Bitcoin.

As tensions and fears spread amid falling prices, Nayib Bukele has decided to give advices through a tweet to Bitcoin investors who may be concerned about the extended bear market:

The president advises everyone not to follow the Bitcoin charts and to “enjoy life”. According to him, “patience is the key”. And it’s true that historical data is guaranteed that after every dip in its history, the famous cryptocurrency has risen to even greater heights.

But this tweet received mixed reactions from the cryptosphere, with many users pointing out that the country had sourced bitcoin at a much higher price and that the market continued to fall. And like in every crisis, there are those who think Bitcoin is over, and those who think Bitcoin will come back even stronger.

Some cryptocurrency enthusiasts have proposed to the Salvadoran president to launch bonds in bitcoins.

👉 Find our guide – How to buy Bitcoin in 2022?

El Salvador’s loss in bitcoin investments

On September 7, 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender. At that time, the cryptocurrency was trading around $50,000.

To know how much the loss of the portfolio of the small country amounts to, a website nayibtracker.com makes it possible to follow in real time the quantity of Bitcoin possessed by El Salvador, as well as the capital gains or the capital losses ​of these investments.

It can thus be seen that El Salvador has 2,301 bitcoinsfor a single cost price of $45,908.42 per bitcoin (while Bitcoin is trading around $20,300 right now). Thus, the country’s investments in cryptocurrency are displayed a capital loss of 55%, or $58 million. It is of course a lower latent value.

Despite the many criticisms, Alexander ZelayaEl Salvador’s finance minister, dismissed accusations a few days ago that the country had lost more than $40 million, saying:

“I’ve said it many times: A supposed $40 million loss didn’t happen because we didn’t sell the bitcoins. »

Indeed, this loss is only temporary and there is no doubt that investments from El Salvador will return to positive territory when the market recovers.

👉 On the same subject – In El Salvador, the government’s Bitcoin (BTC) wallet is struggling to seduce

Source: Cointelegraph

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About the Author : Timothy Bernines

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Passionate about the world of investment, cryptocurrencies have been attracting my attention for a few years now. Having a major interest in the fields of new technologies and Web 3, this is why I naturally recommended promoting articles on Cryptoast, in order to contribute to the democratization of this universe in society.
All articles by Timothé Bernines.

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