El Salvador plans to transfer a significant amount of its Bitcoin assets to a cold storage wallet. The country’s actual vault will hold this wallet, President Nayib Bukele said on Friday.
As he put it in an X post, “You may call it our first Bitcoin piggy bank.” A safe method to save private keys offline is via a cold wallet, often known as a hardware wallet. Theft and fire are two physical threats that a cold wallet is better protected against by keeping it in a vault.
The estimated Thursday worth of El Salvador’s bitcoin assets was $407 million, according to Bukele’s statement.
His statement is timed to coincide with Bitcoin’s new weekly high of around $72,000. Several reasons have contributed to the current spike, one of which is the impending bitcoin halving in April and the other is the launch of Spot Bitcoin ETFs in the US.
Additionally, the returns on El Salvador’s Bitcoin investment have been phenomenal. When compared to its original investment, the nation has made a tidy return. The recent spike in Bitcoin’s value has caused its crypto treasury to rise to over $74 million in profit, according to the Bukele Tracker.
El Salvador is one of the most densely inhabited and smallest states in Central America, but industry analysts predict that its large Bitcoin holdings may make it one of the richest nations in the world.
When this nation became the first in history to recognise Bitcoin as legal money in September 2021, it was the beginning of its Bitcoin adventure. Bukele later said that the government will start purchasing 1 BTC every day on November 16, 2022.
In a recent prediction, venture entrepreneur Tim Draper said that El Salvador might transform from an impoverished and crime-ridden nation to one of the world’s wealthiest and most inventive nations within 30 or 40 years. The fact that they adopted Bitcoin is the only reason for this.
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