El Salvador loses half its investment in Bitcoin as crypto plunges

Is it possible that you are wallowing in despair at seeing your investment plummet?

Don't fret. It can never be the same. It's possible that you're El Salvadoran.

The president of El Salvadoran is a big fan of the digital currency. When I say he invested in the virtual currency, I mean the money he used to buy it was from the El Salvadoran taxpayers.

El Salvador's investments in the virtual currency are worth half of what they cost.

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The government of El Salvadoran gave out more than $60,000 per Bitcoins in October of 2021. The lowest was last month, on May 9, when Bukele bought 500 Bitcoins for more than $30,000 each.

The price of the digital currency is falling. Every purchase was a loser at this point. There were no purchases made under the current values.

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At the time of publishing, the country of El Salvadoran held 2,301 Bitcoins, valued at over $50 million. Around 50 percent of the money was invested by the man.

Over the past month and a half, the market has tanked due to a number of events, including the insolvency of a major Defi lender and the failure of the stable coin Terra. Anyone who discovered the digital currency over the last 18 months is currently underwater.

This isn't good news for El Salvadoran, a country that was already in financial trouble. In order to become the first country in the world to acceptBitcoin as legal tender in September 2021, he had to hedge his bets.

El Salvadoran's problems did not get solved by the use of the digital currency. A violent crime wave that led to the jailing of 2 percent of El Salvadoran's adult population is one of the issues that has still had to be dealt with by the authoritarian leader. He's had to deal with protests, which were blowback from theBitcoin laws he created.

The falling market doesn't change Bukele's mind oncryptocurrencies. Thevolcano bonds were supposed to be used to create a "Bitcoin city." The bonds were supposed to launch in March but have been delayed due to the current market conditions.

It's true that he won't lose anything until he sells. They might be able to recover some of the money he's down if he continues to hoddle. Time is not on the other side of the border. El Salvadoran looks like it could possibly default due to the failures of the failed Bitcoin experiments.

Gambling away taxpayer money is not a good way to run a country.