Nayib Bukele, president of El Salvador, which legalized bitcoin last year, has urged people to exercise restraint after the cryptocurrency with the largest market capitalization plunged in price. Bukele is considered one of the big proponents of bitcoin.
The price of bitcoin has dropped to around $20,000. According to a tracking site, the government of El Salvador has spent about $105 million on buying it since September last year, and per bitcoin The average price paid is about $46,000. This investment has now declined by more than 57 per cent. Bukele wrote on his Twitter account, “I see that some people are concerned about the price of bitcoin. My advice is to stop looking at the graph and have fun. If you have invested in it then your investment is safe and it The market will go up after the downturn. It is important to exercise restraint.”
Last week, a publication said El Salvador suffered a loss of about $40 million on this investment, the Associated Press reported. Taking a jibe at this, Bukele tweeted, “You telling me we should buy more bitcoins?” Bukele did this last month cryptocurrency Bought on a decline. However, since then its price has come down further.
Supporting the investment, El Salvador’s Finance Minister Alejandro Zelaya said in an interview to a local television channel that El Salvador had not sold any of its bitcoins and that it had not actually caused losses. Earlier this year the International Monetary Fund (IMF) advised El Salvador to terminate the legal status of bitcoin. Denying this, Zelaya said that no international organization can force his country to do anything. He called it an issue of sovereignty. The IMF had feared volatility in the price of this cryptocurrency and its use by criminals.