El Salvador Discovers $3 Trillion Gold — Will It All Go Into Bitcoin?

El Salvador Discovers $3 Trillion Gold — Will It All Go Into Bitcoin?

Unlocking a Golden Opportunity

El Salvador’s recent discovery of an estimated $3 trillion in untapped gold reserves has ignited discussions about mining policies, sustainability, and the nation’s ongoing cryptocurrency experiment. President Nayib Bukele envisions using the potential wealth to drive economic growth and advance the country’s bitcoin ambitions.

$3 Trillion Gold Discovery: A Turning Point?

Salvadoran President Nayib Bukele announced that the country’s unexplored gold reserves, located within the Pacific Ring of Fire, could revolutionize the economy if responsibly mined. Current studies suggest that only 4% of the nation’s mining areas have been surveyed, revealing approximately 50 million ounces of gold worth $131 billion—380% of El Salvador’s GDP. Bukele estimates full exploration could value the reserves at $3 trillion, a staggering 8,800% of GDP.

Bukele proposed lifting the 2017 ban on metallic mining, calling it a barrier to economic progress. He stressed that sustainable mining practices could enable El Salvador to monetize its mineral wealth while safeguarding the environment.

From Gold to Bitcoin

As the first nation to adopt bitcoin as legal tender, El Salvador’s gold discovery has a unique cryptocurrency angle. Pierre Rochard, VP of Research at Riot Platforms, highlighted bitcoin’s advantage over gold, noting:

“El Salvador discovered $trillions of gold deposits that when mined will massively dilute the above-ground supply of gold. This can’t happen with bitcoin because the code is open source.”

President Bukele echoed this view, suggesting the newfound wealth could fund bitcoin investments. Prominent bitcoin advocate Max Keiser proposed selling convertible preferred shares based on the gold’s value to purchase large amounts of bitcoin. He argued:

“$300 billion in bitcoin now is better than a wasting asset like gold in the future.”

Balancing Wealth and Sustainability

While the discovery holds transformative potential, critics raise concerns about environmental impacts. Bukele has assured the public that sustainability will be a priority, emphasizing that responsible mining practices can coexist with ecological protection.

The debate over how to utilize the reserves—whether to mine for gold or pivot entirely to bitcoin investments—will shape El Salvador’s economic and technological future.