Bitcoin ‘experiment’ is reportedly a bad deal for El Salvador. For the country’s treasury, this “experiment” cost it $22 million over four months. Furthermore, the adoption of this cryptocurrency as legal tender has led to a decline in El Salvador’s financial credibility, which also hurts the country’s interests. Citizens who heed the advice of El Salvador’s President Nayib Bukele to buy bitcoin or accept it in everyday transactions also suffered.
Bitcoin’s price is currently at its lowest point since El Salvador approved a bill to circulate Bitcoin as the country’s legal tender alongside the U.S. dollar in September 2021, the report said.
On September 7, 2021, the day the regulations establishing a new fiat currency landscape came into effect, Bitcoin was reportedly trading at around $46,000. By the end of October, it had risen to $60,000, but has since fallen all the way down to $35,000 over the weekend.
The report notes that the luck of the people of El Salvador depends on the price level on the day they buy and sell bitcoin, but as a long-term investment, it has so far proven to be a failure.