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Nayib Bukele, the president of El Salvador, is a big fan of cryptocurrency and has invested heavily in Bitcoin. And when I say he invested in Bitcoin, I mean the El Salvadorian taxpayers have invested in Bitcoin because that’s whose money he’s used to buy Bitcoin.

When Buekele “bought the dip” and acquired 420 Bitcoins in October 2021, El Salvador paid over $60,300 per Bitcoin, the highest price per Bitcoin it ever paid. On May 9, Bukele once again “bought the dip” and purchased 500 Bitcoins at a price of more than $30,700 each, a record low.

Bitcoin’s price has dropped to around $23,000 and is expected to continue to do so. As a result, every purchase was a dud as of right now. A single item was not purchased for less than its current value.

At the time of this writing, El Salvador has 2,301 Bitcoin, which is worth an estimated $53 million. The $105.6 million invested by Bukele is roughly split half-and-half.

Coincidences like Terra’s demise and Celsius’s bankruptcy have contributed to a steep drop in crypto prices over the past month and a half. If you’ve been following Bitcoin for the past 18 months and decided to invest, you’re currently underwater.

Not good for El Salvador, which was already reeling from financial woes. With Bitcoin, Bukele decided to put all of his chips on the table, hedging his bets and even working toward making El Salvador the first country to accept Bitcoin as legal tender in September 2021.

Bukele hasn’t been swayed by the falling cryptocurrency market either. “Volcano bonds” were to be issued by Bukele in order to raise money for the construction of a “Bitcoin city.” However, the issuance of the bonds, which were originally scheduled to begin in March, has been delayed as a result of the current state of the crypto market.

It’s true that until Bukele sells, he won’t have lost anything. They may be able to recoup some of his lost funds if he continues to dither. El Salvador, on the other hand, does not have the benefit of time. El Salvador appears to be on the verge of default in part as a result of these failed Bitcoin experiments.

Shockingly, it appears that wasting money on highly speculative crypto investments is not a good way to run a country.

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