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El Salvador’s President Made Six Significant Bitcoin Predictions

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El Salvador became the world’s first government to recognise bitcoin as legal coinage. In 2021, bitcoin and cryptocurrency had its best year yet.

The price of bitcoin has risen from roughly $30,000 per bitcoin this time last year to around $50,000 today. Other prominent cryptocurrencies such as ethereum, Binance’s BNB, solana, and cardano have skyrocketed, with ethereum up about 400% since this time last year and ethereum rival solana skyrocketing a mind-boggling 10,000%.

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Now, El Salvador’s young president, Nayib Bukele, has issued a slew of bitcoin forecasts for 2022, including a prediction that the price of bitcoin will more than quadruple to $100,000.

Bukele teased a “big surprise” during this year’s Miami Bitcoin Conference in April, where El Salvador’s desire to embrace bitcoin as one of its official currencies alongside the US dollar was first announced last year. However, Bukele’s bitcoin price prediction pales in contrast to others.

In November, the bitcoin price peaked at a little over $69,000 per bitcoin before falling back to under $50,000. Following the latest China crypto crackdown and Tesla billionaire Elon Musk appearing to sour on bitcoin—and embracing the meme-based dogecoin as his pet project—the bitcoin price fell as low as $30,000 over the summer.

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Many projected that the price of bitcoin would reach $100,000 by the beginning of 2022, but bitcoin, ethereum, Binance’s BNB, Solana, Cardano, and XRP all suffered towards the end of the year. Since November, the overall bitcoin and crypto market value has lost roughly $800 billion, falling from a peak of around $3 trillion, as concerns about increasing inflation and the Federal Reserve’s 2022 prognosis have risen.

El Salvador formally declared bitcoin a national currency in September, following Bukele’s shocking declaration at the Miami Bitcoin Conference, and has progressively purchased a total of 1,141 bitcoins, according to Reuters calculations—regularly purchasing more.

El Salvador purchased another 21 bitcoins just last month to commemorate the 21st day of the 21st month of the 21st year of the 21st century, Bukele revealed on Twitter, where he labels himself as the CEO of El Salvador and briefly altered his Twitter bio to “dictator” last year. Because there will only ever be 21 million bitcoins, the number 21 is crucial to bitcoin.

Bukele’s bitcoin predictions for 2022 include: “[two] more countries will adopt it as legal tender, [bitcoin] will become a major electoral issue in U.S. elections this year, Bitcoin City will begin construction [and] volcano bonds will be oversubscribed”—a reference to the recently announced new low-tax city that will be built with money from a $1 billion bitcoin-backed bond and powered by geothermal energy from a nearby volcano.

Some of El Salvador’s regional neighbours, who rely on the US dollar as well, have stated they are keeping a careful eye on the country’s bitcoin experiment for signs of success. Some political officials have stated that they would be open to using bitcoin if it could lower remittance expenses, as Bukele claims.

Meanwhile, in the United States, the mayors of New York and Miami are advocating for their cities to become bitcoin and crypto centres, with both offering to accept bitcoin as payment and seeking investors. In 2021, bitcoin and crypto lobbyists emerged as a new power on Capitol Hill, attempting to change the regulations governing the crypto field in response to the technology’s growth.