El Salvador, the first country to adopt Bitcoin as legal tender, has been actively accumulating the cryptocurrency since March 16, 2024. A cold wallet believed to be owned by the Salvadoran government has been acquiring one Bitcoin every day, adding 162 Bitcoins to the country’s reserves, totaling 5,851 Bitcoins as of August 23, 2024. The current market value of these holdings is approximately $357.2 million. Interestingly, the wallet has shown a daily purchase pattern with most acquisitions being for one Bitcoin, although there were instances of smaller purchases as well.
Crypto analyst EmberCN estimates that the average cost per Bitcoin in El Salvador is around $44,835. This suggests a potential upside of $93.45 million based on current market prices, marking a 35% increase. El Salvador’s president, Nayib Bukele, initiated this daily buying program with the intention to continue until Bitcoin becomes unaffordable. Bukele has emphasized that the government has no plans to sell the country’s Bitcoin holdings, indicating a belief in BTC’s potential for significant economic growth. Experts predict that El Salvador could become one of the richest countries in the world if the price of Bitcoin continues to rise.
Beyond direct purchases, El Salvador has also utilized its geothermal energy to mine Bitcoin since 2021. The nation’s volcanic power has mined 474 BTC, valued at approximately $29 million. To further promote Bitcoin literacy within the public sector, El Salvador’s National Bitcoin Office is offering Bitcoin training and certification to 80,000 government employees. The goal is to provide the highest standard of instruction on Bitcoin to civil servants, ultimately fostering excellence and aiding in the development of new capital markets on Bitcoin.
To ensure transparency and inform citizens about 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. The government has been proactive in promoting Bitcoin education, with previous initiatives including Bitcoin training programs and integration of Bitcoin education in public schools. Since 2023, the “My First Bitcoin” project has been included in the school curriculum to educate the younger generation about the digital asset.
Bitcoin currently holds a market capitalization of over $1.2 trillion, representing more than half of the total cryptocurrency market. The price of Bitcoin has seen a slight increase of 5.7% over the past week. El Salvador’s innovative approach towards Bitcoin adoption and accumulation, coupled with efforts to increase public understanding and utilization of the cryptocurrency, positions the country as a trailblazer in the crypto space. With a continued focus on education, energy-efficient mining, and strategic investment in Bitcoin, El Salvador aims to leverage the potential economic benefits offered by the digital asset to secure a prosperous future.
