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What would the crypto crisis mean for El Salvador, the "bitcoin nation"?

 



El Salvador has made significant investments in bitcoin and related infrastructure as part of a daring strategy to develop its economy around the cryptocurrency, but its value has already collapsed.

Bitcoin's value has dropped by 22% in the last five days as investors race to sell the cryptocurrency amid concerns that an asset bubble is about to burst.

After the world's most popular cryptocurrency lost a trillion dollars in value in two months, the average bitcoin buyer is now in the red.

El Salvador, which gambled its economy on bitcoin's success when it became the first country to make cryptocurrency legal tender in September 2021, has lost more than half of its bitcoin assets, and the fall could spell the end of its national crypto experiment.

In addition, the Central American country invested an estimated $105.6 million of taxpayer funds on bitcoin in the belief that its value would climb. 

Bukele has purchased more each time its value has plummeted, live-tweeting the acquisitions.

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Image culled from Google search.








Read more: https://www.newscientist.com/article/2324810-what-will-the-crypto-crash-mean-for-bitcoin-nation-el-salvador/#ixzz7WVY91rmy

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