Despite the fall of Bitcoin, El Salvador wants to be reassuring about financial losses


No real losses! – The crash recent from Bitcoin (BTC)) makes people happy. Indeed, the situation suits investors taking advantage of this fall to buy cryptocurrency at lower prices. But Bitcoin critics are also reveling in the current situation.

Indifference for El Salvador

The Minister of Finance of El Salvador, Alejandro Zelayareacted recently to the umpteenth attacks related to the legalization of Bitcoin in the country. These reviews are recurring. The bearish backdrop, however, gives critics cryptocurrency a great opportunity to spit their venom.

Alejandro Zelaya replied on June 13, 2022, with a punchline, to the question of a journalist on the reaction of the government in the face of the significant drop in price bitcoin.

For the Minister of Finance, the criticisms clearly relate to the Bitcoin, and not on El Salvador’s strategy. Critics of cryptocurrency are not interested according to the minister, “ to what happens to our economy “. Nor would they be interested in the fate of Salvadorans or the evolution of inflation.

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Accounting and not real losses

Alejandro Zelaya further refuted the allegations on the supposed losses of approximately $40 million on the country’s budget.

The significant declines in the price of Bitcoin since November 2021 are believed to be behind these losses. For the Minister of Finance, the country has in fact only recorded no real lossbecause he didn’t sell any of his bitcoins.

These figures remain purely theoretical for the moment. The price of Bitcoin may or may not start a profitable bull rally in El Salvador in the coming months.

Some analysts, however, foresee the possibility of a return of the bitcoin price in the area of $8,000 – $10,000. With such a scenario, El Salvador risks suffering even more rounds of criticism which will not necessarily be justified.

the salvador currently holds 2,301 BTC. His last purchase of Bitcoin dates back to mid-May 2022. The price of the cryptocurrency was then around $30,000. Its price stands at $21,176 at the time of writing.

El Salvador may have to wait several more months before seeing a real bullish recovery in the price of Bitcoin. Based on historical data, the cryptocurrency would bottom out in Q4 2022.

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