While larger economies are either trying to suppress or rule the market of cryptocurrencies, the smaller and developing economies have found a way to get their countries back on track on the global stage. El Salvador is one of the few countries that went against the grain and established a healthy legal framework for cryptocurrencies, especially Bitcoins. Moreover, El Salvador is also one of the largest holders of Bitcoins, with around 1800 Bitcoins in their central reserve. This Bitcoin-friendly Central American country has yet again made the headlines for its recent purchase of 410 Bitcoins.
Bitcoin has experienced a deep plunge after reaching the $50,000 mark, just as last year was about to close. Despite positive predictions, the crypto has not taken off just yet, and the currencies slowly plunged way below their values in 2021. Bitcoin’s fall from $50,000 came down to $36,000 last Friday. This is the lowest Bitcoin has come down since the $37,000 in July of 2021. The announcement about the purchase of 410 Bitcoins came from the president of El Salvador promptly following this fall. This purchase by President Nayib Bukele was reported to have spent about 15 million dollars to acquire a total of 410 Bitcoins. These Bitcoins were bought at the average price of $36,585. Bitcoin price prediction experts anticipates promising future for the coin.
El Salvador joined the small list of countries that legalized Bitcoins in September 2021. The country adopted Bitcoins to conquer the alarming inflationary rates and the declining spending power of the nations. Within months from this announcement, Bitcoins have now become a significant part of the central reserves of the country. The country has so far acquired as many as 1800 Bitcoin and biding its time for another significant dip to increase this number. The bulk acquisition by El Salvador is, so far, its cheapest purchase of Bitcoin.
As for Bitcoin, the new year has not been profiting well. Thanks to the market push last July, Bitcoin was able to reach its all-time high of $69,000 in November 2021. However, it was met with a steady decline afterward which brought it to half the value of its all-time high in just a couple of months. The new reports, nevertheless, state that the number of users is likely to reach 1 billion by the end of 2022. This speculated event might owe a big thanks to countries like El Salvador that took and are actively taking a progressive legal stance towards Bitcoin. The friendly stance of these nations is expected to push Bitcoin towards the populations of these countries.