The fall in the price of Bitcoin has added a lot to the Bitcoin experiment of El Salvador.
The introduction of Bitcoin as legal tender in El Salvador was one of the most ambitious and interesting projects, although it took place in the bullrun 2021. During some corrections, the president of the country stated that the country has repeatedly re-bought BTC, which on average reduces its position costs. Nevertheless, it seems that it went wrong.
After Bitcoin slumped to $20,000, the country currently has a loss of about 50%, making BTC one of the worst investments the country could have made. In addition to poor portfolio and risk management, El Salvador has failed to implement BTC payments in the daily lives of its citizens.
As can be seen in the picture, %PNL indicates that El Salvador has decreased by 48% compared to its initial investment. The country has lost more than $ 30 million, in addition to problems with international investors.
The main intention of the country was to introduce an alternative to the US dollar for the citizens of El Salvador and at the same time implement its own Chiv crypto wallet, which would serve as the primary tool for paying taxes and making daily payments.
To a large extent, El Salvador-based companies accepted Bitcoin and other cryptocurrency payments, which attracted many crypto enthusiasts from all over the world. Over time, however, many companies had stopped supporting Bitcoin because of its strong volatility.
Most business owners in the country also expressed their criticism about the Chivo wallet, which is too complicated for older people who are not familiar with P2P payments and the use of decentralized technologies.