El Salvador, known for being the first country to adopt bitcoin (BTC) as legal tender, is making waves in the cryptocurrency world with its strategic approach to accumulating the digital asset. Since March 16, 2024, a cold wallet linked to the Salvadoran government has been steadily acquiring one bitcoin each day, as reported by blockchain analytics platform Arkham Intelligence.
bitcoin-buys-boost-el-salvador-s-reserves">Daily bitcoin Buys Boost El Salvador’s Reserves
This consistent buying pattern has resulted in the addition of 162 Bitcoins to El Salvador’s reserves, bringing the total to 5,851 Bitcoins by August 23, 2024. The market value of these holdings currently stands at around $357.2 million. Data from Arkham Intelligence also sheds light on the daily purchasing behavior of the wallet, showcasing a trend where most transactions involve the acquisition of one bitcoin, with the occasional purchase of less than $1.
According to crypto analyst EmberCN's post on August 23, the average cost per bitcoin in El Salvador is estimated to be around $44,835. This suggests a potential upside of $93.45 million (+35%) based on current market prices.
bitcoin-strategy-more-than-just-buying">El Salvador’s bitcoin Strategy – more Than Just Buying
President Nayib Bukele initiated the daily buying program in March 2024 with the intention to continue until bitcoin becomes "unaffordable." The government transferred 5,689 Bitcoins to a cold storage wallet at the program's onset, valuing them at $386 million. Bukele affectionately referred to this wallet as the country's "first bitcoin piggy bank."
However, El Salvador’s ambitions go beyond financial gain, as Bukele has expressed no interest in selling the country's bitcoin reserves. This steadfast belief in bitcoin's potential for economic growth positions El Salvador on a trajectory to potentially become one of the wealthiest nations globally if BTC prices continue to appreciate.
To ensure transparency in its bitcoin transactions, El Salvador’s National bitcoin Office launched a website in May 2024 to track the Ministry of Finance’s coin holdings in collaboration with mempool.space, an entity that publishes bitcoin transaction data.
Additionally, El Salvador has leveraged its geothermal energy resources for bitcoin mining since 2021, resulting in the mining of 474 BTC, valued at approximately $29 million.
bitcoin-literacy">El Salvador to Boost bitcoin Literacy
In a bid to enhance public sector understanding of bitcoin, El Salvador's National bitcoin Office will provide bitcoin training and certification to 80,000 government employees. Stacy Herbert, Director of El Salvador’s bitcoin Office, emphasized the importance of educating civil servants on bitcoin to drive excellence in the country's burgeoning capital markets.
El Salvador has already introduced bitcoin education into public schools through the "My First bitcoin" project, integrated into the curriculum since 2023. This initiative aims to educate the younger generation about digital assets, paving the way for a more informed citizenry.
bitcoin continues to dominate the cryptocurrency market with a market capitalization exceeding $1.2 trillion, representing over half of the total cryptocurrency market. With a recent 5.7% increase in the price of BTC over the past week, El Salvador's strategic approach to bitcoin accumulation and education sets a precedent for other nations to follow suit.
