Salvadoran President Nayib Bukele, famous for his recent bitcoin manufacturing efforts (BTC-USD) widely adopted in El Salvador, took the collapse of FTX cryptocurrency exchange as an opportunity to defend bitcoin.
“FTX is the opposite of #Bitcoin,” Bukele wrote in a recent Twitter post. Publish. “The #Bitcoin protocol was created precisely to prevent Ponzi schemes, bank runs, Enron bailouts, WorldCom, Bernie Madoff, Sam Bankman-Fried and wealth reallocations. Some get it, some don’t. still. We’re still ahead.”
But with bitcoin (BTC-USD) on some 75% Since its November 2021 peak of $68.9,000, El Salvador, the first country to make BTC legal tender, has suffered significant paper losses. In early July, the Central American country BTC Wallet was valued at $46.6 million compared to a total investment of nearly $104 million.
Since then, however, the price of bitcoin (BTC-USD) dropped 17%, adding even more downward pressure on El Salvador’s holdings of digital tokens. Nonetheless, Bukele doesn’t seem bothered by the price drop as he continues to tout bitcoin’s long-term prospects.
Previously, (September 16) El Salvador Debt Rating cut again at Fitch.