El Salvador’s 27% Bitcoin Return vs IMF Debt: Did Bukele Outplay the System?

I ran some tough calculations evaluating El Salvador’s present 27% return on their Bitcoin investments to what might need occurred if that they had adopted the IMF’s recommendation and brought a $1.4 billion mortgage.

Bitcoin holdings have gone up by about $27.4 million thus far, with no debt burden. Examine this to taking over an IMF mortgage, which might have price them round $35 million/yr in curiosity and a complete of $350 million over 10 years. Plus, inflation (at 5-6% yearly) would have additional eroded any actual good points from conventional financial measures.

Clearly, Bitcoin’s unstable, so this might nonetheless swing both approach, however as of now, it appears like El Salvador’s guess is paying off higher than being tied down with IMF debt.

Caveat: These are tough calcs, so don’t take them as gospel, however it’s an attention-grabbing comparability. Ideas?