Crypto News

El Salvadore President lost $12 million of public funds in Bitcoin

If recent calculations by Bloomberg are correct, El Salvadore’s bitcoin investment may have caused more financial losses than it originally intended to bring in.

According to information found on President Nayib Buke’s tweets, it is estimated that the country has around 1,391 bitcoins. The average bitcoin price was $51,056 per BTC. This would make the total holding worth $71 million.

The current total value of bitcoins owned by the Salvadorean government is $59 million. This is despite bitcoin’s brutal start to 2022. It touched new lows and registered a 17.5 percent decline over the past few weeks.

Bukele’s bitcoin purchases cost the country nearly $12 million in public money. These losses are not real if Bukele hasn’t sold or resold any bitcoin. This is the country’s legal tender and the largest cryptocurrency market capitalization.

Decrypt, an online news portal that covers cryptocurrency news, reported that Ricardo Castaneda (an economist at El Salvador’s Central America Fiscal Studies Institute) said that there is no official information on the amount of Bitcoin purchased by the government, the price paid, or how much is left in reserve.