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El Salvador’s Bitcoin to Transform Country into World Super Power in 30 Years

Last Updated March 12, 2024 10:19 AM
Teuta Franjkovic
Last Updated March 12, 2024 10:19 AM

Key Takeaways

  • Tim Draper believes El Salvador’s decision to adopt Bitcoin will make it a wealthy country within decades.
  • Draper suggests BTC investments could help El Salvador pay off debts to the IMF and avoid future reliance on TradFi.
  • President Bukele highlighted potential profits from Bitcoin’s price rise but reaffirmed the country’s long-term strategy.

Venture capitalist Tim Draper, known for his bullish Bitcoin forecasts, has commended  El Salvador’s decision to adopt Bitcoin, discussing its potential benefits for the nation’s populace.

Draper believes the country could become one of the wealthiest nations within the next three decades as a result of its Bitcoin adoption.

Draper Foresees Bright Future for El Salvador with Bitcoin Adoption

Venture capitalists and financial experts are beginning to align with the early adopters of Bitcoin. Among them, investor Tim Draper,  has reflected on El Salvador’s move to embrace Bitcoin as legal tender.

Speaking on the Web3 Deep Dive podcast  with host Rachel Wolfson, Draper expressed his belief that Bitcoin is contributing to El Salvador’s development and improvement. He also predicted that the cryptocurrency will play a crucial role in shaping the nation’s future in the years ahead.

He said :

“They will have within maybe 30 or 40 years gone from the poorest most crime-ridden country to maybe one of the richest most innovative countries in the world just in that period of time and just because they embraced Bitcoin.”

Bitcoin to Empower El Salvador’s Financial Independence from IMF

Tim Draper argued that the Bitcoin investments made under President Nayib Bukele’s leadership could help El Salvador settle its debts with the International Monetary Fund (IMF) and sever future financial dependency. Draper, who forecasts Bitcoin’s value will surge to $250,000 within the year, also suggests that traditional currencies will lose their appeal.

President Bukele and his party, Nuevas Ideas, were instrumental in the adoption of the Bitcoin Law in 2022. This saw El Salvador pivot towards cryptocurrency. Despite this move, the IMF has been vocal in its criticism, urging El Salvador to abandon its Bitcoin strategy due to financial risks.

Bukele Touts Potential for Profit Amid Bitcoin Price Surge

Nayib Bukele recently addressed concerns about El Salvador’s Bitcoin investments, pointing out that despite past criticisms over market dips, the current higher market price could yield a profit exceeding 40% if sold now. However, Bukele clarified that El Salvador has no intention of liquidating its Bitcoin assets.

He detailed the nation’s approach to expanding its Bitcoin treasury through a citizenship program. This fast-tracks the citizenship process for people who make Bitcoin donations to the government.

The specifics of the donation amount remain undisclosed. El Salvador’s strategic acquisitions have resulted in a portfolio of 2,381 BTC, purchased at an average price of $44,292.

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