El Salvador’s Bitcoin Purchase: Price and Details

In September 2021, El Salvador became the first country to adopt Bitcoin as legal tender. The government, led by President Nayib Bukele, made significant investments in Bitcoin, purchasing 400 BTC at an average price of approximately $53,000 per Bitcoin. This move was part of a broader strategy to integrate Bitcoin into the national economy and to boost financial inclusion in the country. As of August 2024, the value of Bitcoin has experienced considerable volatility, reflecting the high-risk, high-reward nature of cryptocurrency investments. The price at which El Salvador acquired Bitcoin has had a profound impact on its financial landscape, shaping its economic policies and international relations. The government's strategy includes using Bitcoin to attract investment and facilitate remittances, which are a significant source of income for many Salvadorans. Despite the initial enthusiasm, the Bitcoin experiment has faced challenges, including fluctuating market prices and concerns about its impact on the country's fiscal health. This article explores the details of El Salvador's Bitcoin purchase, the rationale behind it, and the outcomes of this bold economic experiment.