On Tuesday, the Central African country El Salvador announced Bitcoin as the official currency of their country.
El Salvador becomes the first country in the world to adopt Bitcoin as their legal tender.
The President of El Salvador Nayib Bukele tweeted that the country has bought 200 Bitcoins worth $200 million.
After the announcement, the price of the cryptocurrency increased by 1.49% to $52,680.
"El Salvador just bought 200 new coins. We now hold 400 bitcoins," Bukele tweeted.
Businesses will be required to accept Bitcoin in exchange for goods and services and the government will accept it for tax payments.