5 Bitcoin Predictions
On January 2, the President of El Salvador, Nayib Bukele, shared 5 predictions about Bitcoin (BTC) for the year 2022. As a reminder, El Salvador had adopted BTC as legal tender. Thus, all businesses in the country must accept BTC as a means of payment for goods and services.
President Bukele predicted that two more countries will adopt Bitcoin as legal tender in 2022. El Salvador was one of the few non-American nations to use the dollar as its official currency. Other countries are in this situation such as Panama, Ecuador or Somalia.
Nayib Bukele is also optimistic about El Salvador’s two initiatives: Bitcoin City and Volcano Bonds. According to him, “the construction of Bitcoin City” will begin this year. Indeed, the president envisions Bitcoin City becoming a fully functional city with residential areas, shopping malls, restaurants, a port, and “it will all revolve around Bitcoin.” The new city will be financed by bonds denominated in Bitvoin.
Bukele also predicts that Bitcoin will symbolically reach 6 digits exceeding the $ 100,000 mark and that the subject of cryptocurrencies will become a major electoral issue during the American elections and that the price
The IMF and JP Morgan do not share the same vision
Not everyone shares the same enthusiasm than Nayib Bukele. El Salvador’s adoption of Bitcoin as legal tender has sparked a lot of backlash. Gerry Rice, IMF spokesperson, expressed his distrust on the subject:
“The adoption of Bitcoin as a legal currency raises a number of macroeconomic, financial and legal issues which require a very thorough analysis. We are therefore monitoring developments closely, and we are continuing to consult the authorities. “
The IMF and even JP Morgan have spoken on the subject. The investment bank suggested that legal adoption of the currency could lead to bitcoin network overload.
? To read on the same subject: The Bank of England is worried about the adoption of Bitcoin (BTC) by El Salvador
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About the Author : Florent David
Engaged in the crypto ecosystem since 2017. I am particularly interested in decentralized finance (DeFi), Ethereum 2.0 and non-fungible tokens (NFTs).
All articles by Florent David.