10.12.2024 14:31
Since 2021, the President of El Salvador, Nayib Bukele, who has been purchasing Bitcoin, announced that they have discovered a gold deposit worth 3 trillion dollars in the country.
Recently in the spotlight due to Bitcoin investments, El Salvador has launched a mobilization to benefit from its underground resources.
El Salvador's President Nayib Bukele announced that the country has unextracted gold reserves worth 3 trillion dollars, stating, "This amount is more than 8000% of our GDP. In addition, we have identified minerals such as cobalt, nickel, and lithium, which are used in the fourth industrial revolution, in our country."
HOW WAS IT CALCULATED?
Bukele's estimate of 3 trillion dollars is based on the latest studies conducted in the country. Accordingly, gold reserves of 50 million ounces have been identified in 4% of the areas with potential for gold discovery. The El Salvador government has projected that the total value of reserves in the country is 3 trillion dollars based on this.
"WE ARE AWARE THAT NATURE NEEDS TO BE PROTECTED"
During the rally, Bukele reminded that mining has been banned in El Salvador until now, saying, "We are aware that nature needs to be protected. However, some processes can be carried out without destroying nature. We are the only country in the world that bans mining and excavation. We must develop our country. Mining will only take place in 1% of the country. There will be no mines near our homes. Mines will not disturb anyone."
Meanwhile, Bukele also gave a notable response to a user who commented on the issue on X.
"WE WILL DILUTE AS IF THERE ARE NO TOMORROWS"
The user in question commented, "El Salvador has discovered trillions of dollars worth of gold deposits that will greatly 'dilute' the gold supply on Earth when extracted. This cannot happen with Bitcoin because its code is open source, and everyone can see that there will never be more than 21 million BTC, and new supply is halved approximately every four years." Bukele's response was as follows:
"WE WILL DILUTE AS IF THERE ARE NO TOMORROWS"
Here, the dilution refers to the significant increase in supply leading to a decrease in the unit price of gold. Currently, the total market value of gold in circulation is estimated to be 18 trillion dollars globally. If El Salvador's estimates prove to be correct, this would mean an increase of approximately 16.6% in the total supply.