By Shelly Melancon (Switzerland)
Irrespective of the current decline in price rate, Nayib Bukele, El Salvadoran President, is still really optimistic about Bitcoin. As at when data was being compiled, Bitcoin was selling at $37,227, down 1.96% in the past 24 hours. In accordance with current prices, Bitcoin has declined by 45.89% from usual highs of $69,000.
In a recent Twitter feed, the President has said that an enormous increase in the price of Bitcoin is just time-dependent due to its 21 million capped supply. He further stated that the 21 million Bitcoin supply most likely won’t be sufficient for half of the over 50 million millionaires on the planet. This kind of points out that demand would most likely be more than supply, and as such, the prices are being pushed up.
Bukele seemed to have made this comment just after the International Monetary Fund(IMF) had prompted El Salvador to put an end to its acceptance of Bitcoin as a legal tender because of the risks that come with it in terms of financial stability and protection of customer’s interest. The IMF’s message was as a result of the intense Bitcoin price drop, in which BTC lost about $10,000 of its worth within January 20 to January 25.
Mike McGlone, the Senior Strategist at Bloomberg, envisages a rise in demand and decline in supply as well, which eventually will boost a tremendous increase in the price of Bitcoin and Ethereum soon enough.
President Nayib Bukele of El Salvador, at the beginning of the year, posted some predictions regarding Bitcoin on Twitter. Bukele has expectations that a minimum of about two other countries will take El Salvador’s step and make BTC legal tender while forecasting a price worth $100,000 for the high valued asset. In the midst of a recent price drop in January, El Salvador lately put in 410 Bitcoin for $15 million to its stash of about 1,801 BTC, holding a value of about $67 million at the present exchange rate.
The Bitcoin Journey of El Salvador
In September 2021, El Salvador was tagged the first country to acknowledge Bitcoin as a legal tender, with the introduction of Bitcoin ATMs and compelling companies to receive the cryptocurrency for payment. Despite making Bukele a crypto Icon, El Salvador’s adoption of Bitcoin as approved cash attracted major criticism.
As reported earlier, Nouriel Roubini, Nobel Prize laureate, decided to hold nothing back on his criticism of El Salvador’s President Nayib Bukele; he had insisted that the President was deserving of impeachment for making the country go bankrupt with his Bitcoin scheme.
Moody, a financial services country, had initially devalued El Salvador’s sovereign credit ranking as a result of varying concerns regarding the country’s daring Bitcoin bet that might hinder it from getting a significant $1.3 billion loan from the International Monetary Fund (IMF).
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