In a bid to revitalize El Salvador's dollarized, remittance-reliant economy, President Nayib Bukele in 2021 made bitcoin legal tender alongside the US dollar, though studies show uptake of the cryptocurrency has been slow
Under Nayib Bukele, El Salvador adopted a Bitcoin strategy that is now worth over $500 million. AFP

KEY POINTS

  • Bitcoin has been setting new price records and is on the way to $90,000
  • The IMF previously warned El Salvador over its Bitcoin strategy
  • Many crypto users said Bukele deserved to 'gloat' about the developments

Bitcoin reached new all-time highs Monday night, going high as $89,500, and Nayib Bukele, the President of El Salvador, is celebrating the milestone.

Bukele is popular in the cryptocurrency industry for being a Bitcoin maximalist – an individual who strongly believes in BTC's superiority over other digital currencies and its path toward becoming the only cryptocurrency that the world will need in the future.

Bukele Claims Vindication After Years of Doubt

Bukele has long talked about Bitcoin's potential. Over the years, his statements have been met with skepticism, including from the International Monetary Fund.

"I told you so," Bukele wrote on X Monday, seemingly taunting the skeptics who didn't believe his decision to make the El Salvadoran government buy 1 BTC daily was a good gamble.

Crypto users flooded the comments section of his post, congratulating him and the "Bitcoin country" for the payoff of their Bitcoin strategy.

Memes abounded in the comments, with many showcasing how Bukele must feel now that BTC continues to surge and El Salvador is well on the way to acquiring 6,000 Bitcoins.

"You deserve this gloat," one user said, and crypto executive Wayne Vaughan said "the IMF will be so disappointed," referring to the time when the IMF warned El Salvador about the risks associated with its push for broader BTC adoption in the country.

Bitcoiner Lina Seiche pointed out how Bukele's Bitcoin strategy was criticized for years but said, "El Salvador never allocated more to Bitcoin than it could afford to lose." She explained that in BTC investments, there is no gamble. Instead, it's "applied game theory," wherein "the first mover is about to reap his rewards."

El Salvador – The Country That Bought When Everyone Sold

Data from El Salvador's Bitcoin Office reveals that the Bukele government has not missed its daily BTC purchases even through the times when Bitcoin prices plummeted, especially in August – when two weekend bloodbaths sent BTC prices crashing to $44,000.

El Salvador BTC Nov 12 2024
El Salvador's Bitcoin treasury is nearing the 6,000-mark. El Salvador Bitcoin Office Website/Screenshot

As of early Monday, El Salvador's Bitcoin treasury has reached 5,931 BTC, worth over $530.5 million. The country started purchasing Bitcoin late in 2022, over a year after it became the first nation to recognize BTC as a legal tender.

El Salvador vs Germany

Crypto content creator Vic Laranja highlighted how El Salvador compares to Germany in handling Bitcoins, pointing out how the latter lost "over $1 billion in potential gains."

While El Salvador was stacking up, Germany sold off all of its seized Bitcoins worth some $3 billion earlier this year. Laranja noted that with its BTC strategy, El Salvador "profited $116 million."

Bitcoin is challenging $90,000 and is expected to continue climbing in the coming weeks as Donald Trump completes his cabinet and prepares to re-enter the White House.

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