Following a dip in bitcoin and other crypto assets, the global crypto market has decreased to $1.67 trillion. Bitcoin fans are optimistic about the future, despite the fact that the slump has not yet ended. El Salvador’s president, Nayib Bukele, recently took to Twitter to explain why the country’s flagship cryptocurrency is about to see a massive price spike.
Bukele pointed out that there are more than 50 million millionaires in the globe, but only 21 million Bitcoins. If every rich opted to possess at least one bitcoin, there would be insufficient coins to go around. As a result, a parabolic price increase would occur.
In recent weeks and months, Bukele’s bitcoin enterprise has been dogged by criticism. The IMF, for example, believes that El Salvador’s adoption of the benchmark cryptocurrency is a major issue since it “involves significant risks for financial and market integrity, financial stability, and consumer protection.” The IMF has issued a new caution to the Central American country, urging it to abandon bitcoin as legal cash.
But, based on a recent tweet from Bukele, it’s evident that, despite repeated warnings from the IMF and other parties, he has no intention of abandoning his huge bitcoin experiment.
Bukele, in particular, has prompted other countries to consider adopting bitcoin as their official currency.
Arizona has also introduced legislation that would make bitcoin legal tender in the state. Though it is not expected to be easy, crypto experts believe that if the bill passes, it will be a significant deal for the leading cryptocurrency. This is due to the fact that Arizona has the same population as El Salvador but has a gross domestic output that is over 10 times higher (GDP). Furthermore, the legalization of bitcoin in a US state would be a watershed moment.
Bitcoin experienced a massive surge in 2021, reaching a high of $69,500 in November. However, the cryptocurrency’s bull run has come to an end, as it just took a dramatic plunge in the wake of a spectacular rollercoaster ride in traditional financial markets.
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