Journey with my thought
El Salvador's adoption of Bitcoin has been a bold and unique economic experiment, and its success or failure is heavily tied to the volatility of the cryptocurrency market. The country began its Bitcoin journey in 2021 under President Nayib Bukele, aiming to boost financial inclusion, reduce remittance costs, and attract investments.
After visiting about 5 site to get information I was able to conclude this
Though El Salvador made a bold decision to adopt bitcoin and it has really helped their economy, and their president Bukele want to use it to boost the country economy and we both know how it could go sideways, even though since 2021 we haven’t seen major challenges in that aspect for them.
Then I read about their plan for handling the bear market
So El Salvador adopted a "dollar-cost averaging" strategy, where the government purchased small amounts of Bitcoin regularly, instead of trying to time the market. This approach spread out the financial risk and allowed the country to accumulate Bitcoin steadily, even during market downturns​.
So When Bitcoin's price dropped as low as $16,000 during the bear market, El Salvador faced criticism, which is kinda to discourage it from investing .
But , Bukele remained optimistic, continuing to invest in Bitcoin despite the temporary losses. The government has positioned Bitcoin as part of its broader financial strategy, and Bukele has emphasized that the country's profits from Bitcoin are long-term, not tied to short-term market conditions​
They have been able to make over 400m$ and about 265m$ in profit , so what will they use this profit for ?
The profits are expected to help with infrastructure investments and social programs, although specific allocations haven't been fully detailed publicly yet, but I still want to know how they plan to allocate it, if the profit is around 265m$ now, how long do they plan to invest and when will they sell or witness profit for infrastructure sake .
But from all these, I don’t know if it will pay them on the long run, it will pay them but will it be before it wrecks them.
So those are my major concern. What’s your input ?