According to Pierre Rochard, senior executive at Riot Platforms, El Salvador has discovered gold deposits worth trillions of dollars. Bitcoin supporter President Nayib Bukele has sent bullish messages to the crypto community with his statement: “We will sell it all.”
Will El Salvador Use Its Gold Reserves for Bitcoin?
Pierre Rochard claims that El Salvador has discovered “trillions of dollars worth of gold deposits.” He emphasized that “when extracted, the gold reserves would significantly increase the supply of gold above ground.” According to Rochard, the size of these gold reserves could potentially impact gold prices by increasing its supply.
Riot Platforms’ executive further pointed out that a similar supply dilution isn’t possible with Bitcoin. He explained:
“This can’t happen with Bitcoin because its code is open source. Anyone can run a node and see that there will never be more than 21 million BTC. Production is halved every four years.”
“We Will Sell as if There Were No Tomorrow”
Responding to Rochard’s statement, President Nayib Bukele declared:
“We will sell these gold reserves as if there were no tomorrow.”
This remark officially confirmed the presence of a gold reserve in El Salvador. Bukele is well-known for his pro-Bitcoin stance, having adopted a Bitcoin purchasing strategy for his country in 2021. Despite the bear market in 2022, this strategy has continued. Since then, El Salvador has been purchasing 1 BTC every day.
Bukele’s Bitcoin strategy has attracted global attention. However, the strategy is beginning to bear fruit. With Bitcoin reaching $100,000, the country has secured significant financial gains. Bukele has shared the investment’s success on social media. El Salvador, which declared Bitcoin as legal tender in 2021, has accumulated 5,942 BTC since that time. This has translated to approximately $600 million at the current market value. Given that the initial investment was $269.7 million, this represents a 124% return. Cryptokoin.com has detailed the analysis in this article.
Bitcoin’s Rise and Political Reactions
On December 5, 2024, when BTC’s price hit $103,679, Bukele showcased El Salvador’s national crypto assets via his social media platform. Thanks to these investments, the country has recorded an unrealized profit of $333.6 million.
The news has received mixed responses. Influential figures like Elon Musk praised Bukele’s vision and highlighted the long-term benefits of this strategic move. However, the general public in El Salvador hasn’t shown the same level of excitement about the Bitcoin strategy.
The government initially distributed $30 worth of Bitcoin bonuses to its citizens, but many converted these funds into cash. While some citizens prioritized short-term cash needs, others neglected the potential long-term benefits of Bitcoin. This behavior has raised questions about how much benefit El Salvador’s population has gained from adopting Bitcoin.
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