2 years ago
298 El Salvador President Nayib Bukele continues to become the most popular president within the crypto sphere. This time, the Bitcoin enthusiast has predicted that the world’s most valuable cryptocurrency will reach the long-elusive six-digit price this year as it sees increased adoption.
“In 2022, bitcoin will reach $100,000 and two more countries will adopt the digital asset as legal tender, he tweeted. Bukele also stated that Bitcoin will be a major factor in the upcoming midterm elections that will be held in the U.S. on November 8.
El Salvador Sets Sight On Building “Bitcoin City”
Bitcoin became a legal tender in El Salvador in September last year. This attracted the interest of the crypto community and drew criticism from the International Monetary Fund (IMF). As if that was not enough, a month later Bukele issued a $1 billion “Bitcoin Bond” with a 10-year maturity.
The IMF said the decision to take Bitcoin as a legal tender could lead to serious negative economic implications in the country. But Bukele has a different opinion, saying the adoption of Bitcoin could boost the economy instead.
The country wants to use half of the proceeds from the fund to build what it calls a “Bitcoin City” along the Gulf of Fonseca.
While Bukele believes that Bitcoin will surge more in value this year, some industry observers think it will perform lower than altcoins associated with layer 1 blockchains like Solana, Ethereum, Avalanche, and Fantom.
El Salvador Shows Confidence In Bitcoin’s Long-Term Prospect
In December 2021, El Salvador bought more Bitcoins to expand its holdings on cryptocurrency. Shortly after the Sout American nation became the first nation to take Bitcoin as a legal tender, it announced that investors are exempted from tax on BTC profits. The move was made to encourage more investors to look towards Bitcoin investment in the country.
Bitcoin saw major price volatility in the second half of 2021, but it started the year with stability. It has been trading between $46,000 and $47,000 with a market cap of around $900 billion since the beginning of the year.
El Salvador has remained consistent in buying the Bitcoin dip, which is a show of strong confidence in the long-term price prospects of the token.
