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Cryptocurrency News Articles

Bitcoin has been a great move for El Salvador

May 20, 2025 at 03:08 am

The current value of the nation's Bitcoin is now $644,423,388, according to an update from President Nayib Bukele on X.

Bitcoin has been a great move for El Salvador

President Nayib Bukelle has provided an update on the current value of El Salvador's Bitcoin portfolio, revealing a total of $644,423,388 in crypto assets.

The Central American nation's president took to X, formerly Twitter, to share an optimistic view of the country's finances. According to Bukele's figures, there is a total profit of $357,239,575, which is 124% higher than the amount initially invested.

Since Bitcoin was made legal tender, El Salvador has spent $287,183,812 on the cryptocurrency which signifies their successful accumulation of Bitcoin during the latest rally.

The portfolio achieved a 12.15% return in 2025 which translated to adding $69,819,022 to its worth. At the moment, the country has not realized any profits from Bitcoin, as its unrealized profit is $357,239,575.

The update includes a chart that illustrates the value of the portfolio over different periods. Box office earnings dropped`h to $25.42 million in 2022, but then rose and reached $655.01 million before ending at $644.42 million.

A Sensible Strategy for the History of Crypto

It wasn’t until September 2021 that El Salvador officially accepted Bitcoin as legitimate currency.Just days before the law was passed, the government acquired 400 BTC for $20.9 million on September 6, 2021.

All businesses in the country are obligated to accept Bitcoin under the Bitcoin Law. There is no capital gains tax for Bitcoin transactions and investors who put more than 3 BTC in the country can get permanent residence status.

The method has been examined over time because of the instability in Bitcoin’s price. Consequently, critics have been hushed, as the portfolio has witnessed major growth in recent times. The decision by the government not to sell when the market drops has been successful.

The administration of President Bukele has looked into different Bitcoin projects. A planned orbiting metropolis at the base of the Con’volcanic mountain was announced in November 2021 and is called Bitcoin Metropolis.Furthermore, tax breaks would be available to locals, and electricity for bitcoin mining would come from geothermal sources.

To build Bitcoin City, the government suggested issuing $1 billion in Volcano Bonds. Half of the capital will go towards city development, but the rest will be spent buying Bitcoin and locking it away for five years.

Global Impact and Future Prospects

The world is paying attention to El Salvador’s adventure with Bitcoin. The country’s accomplishment comes during a larger cryptocurrency rally in 2025, when Bitcoin’s price has gone up a lot since it hit its lowest point in 2022. The portfolio chart shows a steep rise beginning in late 2024, which is when the global market starts to rise.

The strategy in the country has sparked similar discussions elsewhere. Specifically, the United States has considered saving Bitcoin in reserve and it is estimated that this could help eliminate a major part of the national debt by the year 2049.

In spite of the monetary benefits, Bitcoin has not yet gained widespread acceptance in El Salvador.A 2025 report noted that usage among citizens is below 2%, though the government continues to promote its use through various initiatives

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Other articles published on May 20, 2025