Introduction
While many world governments are busy fighting Bitcoin and crypto in general, one particular country is showing the wisdom in early adoption. El Salvador is the country that created history 3 years ago with their stance on crypto. And when we talk about institutional adoption of cryptocurrency, that country is an not just an early bird, they are a shinning example.
The truth remains that cryptocurrency has a lot of good for humanity in general. It strikes as odd that as late as 2024, some governments are still busy taking crypto companies to court instead of regretting they joined the crypto party late. When we look at El Salvador, we can see that crypto can do one outstanding thing for any government that adopts it - generate revenue.
In this discussion, we look at how far El Salvador has come since the first time that country officially purchased Bitcoin. Then, it will be obvious that technologies like blockchain have a huge role to play in growing any economy.
El Salvador - huge profits for early adoption
The president of El Salvador Nayib Bukele will go down in history as one of the forward-thinking leader the world ever witnessed. Even when the adoption of blockchain and subsequent purchase of bitcoin did not receive many admirers, that man stuck with his vision. Today, that vision has shown that success could be achieved even when all that everyone sees is adversity.
El Salvador added Bitcoin to their national treasury and that was back then in 2021. Naturally, one might not consider 3 years such a long time. But everyone in the crypto space knows that in a matter of seconds, the market could move significantly either ways. It was exactly today, 3 years ago that El Salvador purchased its first Bitcoin. From then till now, the country continued to buy and store more Bitcoin, leveraging Dollar Cost Averaging as a strategy. As they celebrate this 3rd anniversary of their journey in BTC investment, its all profit for now.
El Salvador currently owns 5,865 BTC which is worth $310 865 875 as at the time of writing this publication. This value is picked from the president's BTC portfolio tracker. Having purchased BTC throughout the last 3 years, the average cost of each BTC already purchased is $43 877. Currently, the price of BTC has gone up way above the average purchase price, putting the country firmly in the profit zone. In fact, the portfolio tracker displays the current profit of all BTC assets at $32 728 200. That is how much revenue BTC has currently generated for El Salvador. Is that a small amount?
$32m for strong vision
Many countries especially developing ones are not just in debt, they continue to borrow money. The circle of debt is seemly endless. But then, we see a country that saw the future of money and adopted it. Today El Salvador is sitting on a huge profit of $32m. Mind you, BTC experienced massive price reduction as a result of the bear market for some time now. There are still strong quarters that suggest the price of BTC might go as high as $100k by December 2025. However it goes, there is still huge potential for more profit for El Salvador should there be a future bull market.
By now other countries that observe El Salvador should have learnt their lessons except they have not. In fact, the world leaders like US are busy taking crypto CEO's to court and putting them in jail. Prominently, the SEC is making sure that crypto does not find a good ground in the US. But then, what shall we say to any smart leader of the free world? Just look at El Salvador.
Its Still early days
While El Salvador is 3 years smarter than every institution and government, crypto is still at its infancy stages. Mass adoption is still a far cry. So every government, institution and person that joins the crypto movement now is still relatively early in the sector. A small number of the worlds population are in the crypto space compared to those that are not. Talking about governments, the opportunity to generate revenue from this sector is just massive.
To begin with with El Salvador did, every government should thing about adding digital assets like BTC to the national treasury. Bitcoin will continue to grow and over time, its value will always appreciate. It might not require a whole plunge to begin, just a dip of the toe. They could bring out a small amount of the national wealth and put them in crypto. Dollar cost averaging will ensure a very fair prize over time. When the market does well, the government has more money that is making money.
Beyond the financial investment, crypto as a sector is creating jobs. The thousands of crypto traders in the space have find permanent employment in the sector. Besides, there are crypto platform developers, investors, speculators, and airtime hunters. The growing popularity of Telegram play-to-earn games point to the potential of crypto to create jobs, revenue and opportunities. These are vital elements for national growth of every economy which is why all governments should seriously consider crypto official adoption.
Finally
Even if a government does not feel like getting personally involved, they should create a good atmosphere for crypto to thrive. Crypto should not be criminalized. Just as every sector is doing, the crypto sector could even generate taxes. So instead of being hostile, governments could begin to integrate crypto into the national economy. Just like El Salvador, there will be no regrets for any governments that decides to adopt crypto and even make it a national movement.
Note: Thumbnail is from pixabay
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