How Much Would El Salvador’s $30 BTC Giveaway Be Worth Today?

Bitcoin El Salvador

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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June 26, 2023

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Salvadorans who heeded advice to HODL the Bitcoin (BTC) they were handed out as a “golden hello” for downloading the state-run Chivo app may be ruing their decision, a new report has claimed. But there could be a silver lining for late adopters – who may be in for a windfall.

One of the nation’s biggest newspapers, El Diario de Hoy, calculated the relative worth of the giveaway – which was launched along with Chivo almost exactly a year ago – in October 2022 BTC prices.

In a bid to boost adoption, the government offered new Chivo users based in El Salvador $30 worth of Bitcoin, hoping that this would encourage citizens to gain experience with the token. BTC was granted legal tender status in September 2021.

Per the newspaper’s calculations, the average new Chivo user could have expected to receive BTC 0.00053 if they registered in October 2021. But those who HODLed their tokens, instead of converting them to cash or spending them in stores, would be left with coins worth just around $10.30 at current prices.

However, Salvadorans who are yet to open a Chivo wallet could be set to benefit – if predictions of a BTC price recovery are to be believed. The “golden hello” offer is still open to those Salvadorans yet to download the app. $30 would currently buy you around BTC 0.0016 – so if BTC is to experience a recovery, late adopters could be set for gains.

But at the time of writing, things still look grim for the Salvadoran government: Chivo has undergone no shortage of problems, including allegations of opacity and identity theft. The app’s once-active Twitter account has fallen largely silent, and reports claim that public appetite for BTC and Chivo has dwindled since the initial fanfare of September 2021.

How Much Has the Government ‘Lost’ on BTC Buys?

President Nayib Bukele and his government’s BTC buying strategies have also been criticized. The same media outlet calculated that Bukele has suffered losses of $60.5 million on the BTC 2,381 he has bought so far – using public funds.

Bukele and his ministers have taken a stoical approach to the matter. In June, he told his Twitter followers:

“I see that some people are worried or anxious about the price of Bitcoin on the market. My advice is to stop looking at graphs and enjoy life. If [you] invested in BTC, [your] investment is safe and its value will grow tremendously after the bear market. Patience is the key.”