Nayib Bukele announces Bitcoin prescription for El Salvador: 1 BTC per day

As the first country in the world to adopt Bitcoin (bitcoin) as fiat currency in September 2021, El Salvador will resume its BTC purchase day after months of suspension bear market condition.

President Nayib Bukele of El Salvador announced on Nov. 16 that the Central American country will start buying BTC daily on Nov. 17. The announcement comes nearly three months after the country last bought BTC in July 2022.

El Salvador began buying bitcoin in September 2021, when it became legal tender. At the time, BTC was in the middle of a bull market, and every purchase across the country looked profitable as prices hit new all-time highs every other week. However, with the bear market looming in the second quarter of 2022, El Salvador’s early BTC purchases are starting to look like a disastrous gamble.

According to public records, El Salvador currently holds 2,381 BTC with an average purchase price of $43,357. As a result, the country has spent nearly $103.23 million in BTC, while the value of the same BTC is currently $39.4 million.

BTC Total Purchase History for El Salvador

Announcing a new BTC buying program at a time when the top cryptocurrency is at a new cycle low could help El Salvador offset some of its losses in the coming months.

In addition to the losses small countries suffer when buying BTC, the top cryptocurrency has played a major role in helping to significantly reduce the cost of sending money across borders, while also boosting tourism.

related: El Salvador’s Bitcoin decision: Tracking adoption a year later

Cointelegraph reporter Joe Hall is currently on the ground in El Salvador, surviving on BTC alone. Some early updates from Hall indicate that most tourist attractions accept BTC, but the mobile app and services need more improvement.

The prospects for BTC adoption in El Salvador may be less optimistic due to the severe winter. However, looking at the history of Bitcoin price cycles, the country can easily offset the losses of the next bull cycle by simply holding Bitcoin to buy.