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El Salvador moves Bitcoin holdings to cold wallet - increased security in the physical vault
Learn more about El Salvador's plans to move much of its Bitcoin holdings to a cold wallet and store them in a physical vault in the country. Learn how cold wallets increase cryptocurrency security and how El Salvador's Bitcoin investment has resulted in impressive profits. Learn why experts expect El Salvador could become one of the world's wealthiest countries thanks to its Bitcoin holdings.
El Salvador moves Bitcoin holdings to cold wallet - increased security in the physical vault
El Salvador plans to transfer a significant portion of its Bitcoin holdings to a cold wallet. This wallet will be housed in a physical vault in the country, President Nayib Bukele announced on Friday. He described it as “our first Bitcoin piggy bank.”
Cold wallets or hardware wallets offer a secure way to store private keys offline. Placing a cold wallet in a physical vault increases security by protecting it from physical threats such as theft or fire.
According to Bukele's statement, El Salvador's Bitcoin holdings stood at about $407 million as of Thursday. This announcement comes as Bitcoin hit a new record high of over $72,000 this week. The recent rise is fueled by various factors such as the launch of spot Bitcoin ETFs in the US and the expected Bitcoin halving in April.
Additionally, El Salvador's Bitcoin investment is making impressive gains. The land has made significant profits compared to the original purchase price. His cryptocurrency treasure trove has risen to over $74 million following the recent surge in Bitcoin's value, according to the Bukele Tracker.
Industry experts see El Salvador as potentially one of the richest nations in the world due to its significant Bitcoin holdings, despite its small size and high population density. El Salvador's Bitcoin journey began in September 2021 when the country made history by adopting Bitcoin as legal tender. Later, on November 16, 2022, Bukele announced that the government would purchase 1 Bitcoin daily.
Venture capitalist Tim Draper recently predicted: "Within perhaps 30 or 40 years, El Salvador will have gone from being one of the poorest, most crime-ridden countries to one of the richest, most innovative countries in the world, just in that time period. And that's only because they accepted Bitcoin."
The following table provides an overview of El Salvador's Bitcoin holdings:
| Date | Bitcoin holdings (USD) |
|---|---|
| March 2024 | $407 million |