El Salvador’s President Tweets Benefits of Bitcoin Over Gold
As the Cryptocurrency market is witnessing a fall in its value, Nayib Bukele has expressed his confidence in investing in Bitcoin.
The president of El Salvador, Nayib Bukele, revealed that the country has 44,106 oz of gold reserves. He said that the gold reserves lost 0.37% value from what it was a year ago.
Nayib Bukele emphasized that replacing the gold reserves with Bitcoin would have yielded a better return of $125 million more than the current value of its gold reserves.
This was a part of the conversation that he was having with Peter Schiff, a veteran gold investor, on Twitter.
The gold reserves of El Salvador are worth $79 million. The valuation is down by 0.37% from what it was in the previous year. Had the country sold its gold reserves to invest in Bitcoin, the valuation of the investment would have been $204 million.
The conversation started when Nayib Bukele published a tweet informing everyone that El Salvador had bought 100 Bitcoins during the period when the Cryptocurrency market was witnessing a decline in valuation.
Peter Schiff replied with a comment to inform that more dips were on the way. He further asked how much more taxpayers’ money did he want to waste.
In reply to this comment, Nayib Bukele highlighted that the investment in Bitcoin was already greener within 24 hours.
The head of El Salvador has a voice that supports his move.
Michael Sayler commented in September 2021, saying that had he invested in gold instead of Bitcoin then it would have been a mistake worth multi-billion dollars.
The Chief Executive Officer of Microstrategy, Michael Sayler, increased his holding of the number Bitcoin. In November end, he bought 7,002 more Bitcoins. His holdings now stand at a total of 121,044 Bitcoins.
Bitcoin made its way into the market of El Salvador after the country made it a legal currency along with the US dollar in September 2021. The move was not taken well by the International Monetary Fund and the Bank of England.
The International Monetary Fund had issued a warning of legalizing Bitcoin as a legal tender in El Salvador. Andrew Bailey, the Governor of the Bank of England, had also expressed his concern over the move.
The opposing views had emerged majorly due to the volatile nature of Cryptocurrency. The IMF and Andrew Bailey had asked Nayib Bukele to consider the interest of all the investors before proceeding with legalizing Bitcoin as a legal tender.