The first country to adopt bitcoin as a legal tender has become a victim of ridicule from the crypto-critical community and some influencers.
This is after Bitcoin dropped to the $42,000 level, putting El Salvador, which is the first country ever to buy bitcoin, officially in a losing position.
El Salvador and the average purchase price of Bitcoin:
The country bought bitcoin over multiple periods of the correction.
The last purchase was made when Bitcoin reached $50,000.
According to the head of state’s Twitter account, the average income for El Salvador remains at around $49,000.
It is important to note that the bitcoin buying spree in the country may experience a slowdown, as the recent purchase order volume was around $1 million with an average of 100-150 bitcoin purchase orders.
How much does El Salvador earn from trading bitcoin?
While the buy on dip strategy can be profitable and easy to use at times, in the case of El Salvador it has not done well in the medium term.
If we take into account that the average income for the country is about $50,000, the country’s portfolio of cryptocurrencies is currently in a loss position of about 15%.
Famous Bitcoin critic Peter Schiff has joined the crypto-critic community by calling on El Salvador’s President Nayib Bukele to stop forcing the country’s citizens to participate in a pyramid scheme instead of giving them more financial freedom.
At press time, Bitcoin is trading at $42,500 and a 1% loss in the last 24 hours.
The previous day’s biggest drop was caused by many factors, including political instability in one of the world’s largest retail providers, Kazakhstan, and tougher rhetoric from the US Federal Reserve, which wants to act tough to accelerate de-inflation in the country.
$810 million long positions liquidated as Bitcoin price drops to $42,000
Dogecoin co-founder slams Mozilla for reversing accepting crypto donations