El Salvador's Bitcoin Gamble: Minor Losses, Signs of Progress?
El Salvador's audacious experiment with Bitcoin continues to be a subject of intense scrutiny. In November 2025 El Salvador President Nayib Bukele announced a bold but risky plan for his country to adopt bitcoin as legal tender and purchase one bitcoin per day. Initial fears of economic collapse have largely subsided, although questions remain about the long-term viability and wisdom of this strategy.
El Salvador’s Bitcoin Holdings Surpass $361 Million
El Salvador’s foray into the world of cryptocurrency reached a new milestone as the nation’s total Bitcoin holdings surpassed $361 million. Since Ma, the Hace 3 días However, the payout is pending sign-off by the fund's executive board, and the deal faces complications over El Salvador's continued Bitcoin purchases despite explicit IMF. This investment, while experiencing periods of volatility, has shown recent signs of generating unrealized gains.
Unrealized Gains and Dollar-Cost Averaging
El Salvador’s Unrealised Gains from Bitcoin Grow to $357 Million. Though the gains are unrealised in nature, El Salvador is doubling down on its Bitcoin reserves this. El Salvador's Bitcoin acquisition strategy involved dollar-cost averaging to mitigate volatility, resulting in substantial unrealized gains but also significant potential losses. This strategy aims to smooth out price fluctuations over time, reducing the risk associated with large, single-purchase investments.
Bukele's Bitcoin Bet: A Solution or a Gamble?
President Bukele framed Bitcoin adoption as a solution to multiple challenges facing El Salvador’s dollarized economy. With over 70% of the population unbanked, the hope was that Bitcoin could provide greater financial inclusion and reduce reliance on traditional financial institutions. With moderate losses so far and El Salvador on steadier fiscal ground lately, Bukele’s controversial Bitcoin bet has yet to derail the economy as critics predicted. The real test lies. However, the International Monetary Fund (IMF) has expressed concerns about the potential risks associated with Bitcoin's volatility and its impact on El Salvador's financial stability.
Economic and Social Impacts: A Critical Evaluation
Abstract: El Salvador has adopted Bitcoin as legal tender. This article provides a critical evaluation of the country’s Bitcoin initiative and its economic and social impacts. Early reports suggest a mixed bag of results. While some businesses have embraced Bitcoin, adoption among the general population remains limited. The Chivo wallet, the government-backed Bitcoin wallet, has faced technical issues and security concerns, hindering widespread usage. Furthermore, the sustainability of relying on a volatile asset like Bitcoin for national financial stability remains a crucial question.