Benzinga - The country of El Salvador has been among the most pro-cryptocurrency countries thanks to legally adopting Bitcoin (CRYPTO: BTC) as legal tender back in 2021. With pro-Bitcoin President Nayib Bukele winning re-election, the crypto and country could be back in the spotlight.
What Happened: El Salvador became the first country in the world to accept Bitcoin as legal tender, with the approval of the "Bitcoin Law" on June 9, 2021. The law led to the country buying Bitcoin and also made it so that residents could pay taxes in Bitcoin and would not be subject to capital gains tax on Bitcoin transactions.
Bukele called the passage of the Bitcoin Law as "History!" in a tweet on the day of approval.
The country went on to buy Bitcoin and also bought additional Bitcoin on June 30, 2022, with a $1.5 million purchase grabbing Bitcoin at an average price point of $19,000.
"Thanks for selling cheap," Bukele said of the June 2022 purchase by the country.
Bukele is declaring victory in the presidential election of El Salvador held Sunday, Feb. 4 in the country of around six million people.
The president claims to have gotten around 85% of the vote in a potential landslide victory. The country has posted a reduction in crime, which has generated Bukele-wide support.
"El Salvador went from being the most unsafe (country) to the safest. Now in these next five years, wait to see what we are going to do," Bukele said, as reported by Reuters.
A constitutional court approved Bukele's re-election bid, but his potential win has been met with worldwide criticism due to a past ban on consecutive terms for presidents in the country.
Bukele has been the president of El Salvador since June 1, 2019.
Here's a look back at how Bitcoin has performed since it was adopted as legal tender in the country.
Related Link: El Salvador’s Bitcoin Success: President Bukele Weighs Next Steps After $3.6 Million Profit
If You Invested $1,000 in Bitcoin: An investor could have purchased 0.0299 Bitcoin on June 9, 2021, based on a price of $33,416.98.
The $1,000 investment would be worth $1,285.09 today, based on a price of $42,979.64 for Bitcoin at the time of writing. The investment would be up 28.5% over the past two-plus years.
For comparison, the same $1,000 invested in the SPDR S&P 500 ETF Trust (NYSE:SPY), which tracks the S&P 500 market index, would be worth less than the Bitcoin investment. A $1,000 investment in SPY on June 9, 2021, could have bought 2.36 shares. The investment would be worth $1,159.23 today, up 15.9% over the same time period.
Bitcoin hit all-time highs of $68,789.63 in November 2021, months after El Salvador made its purchase of the cryptocurrency. The $1,000 investment at the time of the country's legal tender announcement would have been worth $2,056.81 at all-time highs and up 105.7%.
Investors also would have done well if they bought the dip in Bitcoin in June 2022 as El Salvador did. A $1,000 purchase of Bitcoin at a price point of $19,000 would be worth $2,260.73 today, up 126.1%.
Read Next: Want A Second Passport? El Salvador Is Now Offering Citizenship For Bitcoin Donations
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