Known For Poor And Criminal Nests, El Salvador Will Become A Rich Country Because Of Bitcoin

A country rich in Bitcoin (Freepic)

YOGYAKARTA - El Salvador is predicted to become the richest country in the world because of Bitcoin ownership. This conversation certainly shocked the world's public considering that El Salvador is a small, dense and slum country. But behind that, this Central American hemisphere is said to have a very large cryptocurrency.

El Salvador became the first country in the world to legally use Bitcoin as a means of payment in September 2021. Since November 16, 2022, El Salvador President Nayib Bukele announced that the government will buy 1 Bitcoin per day.

President Nayib Bukele's decision drew a lot of criticism and sparked controversy. However, the country managed to hold Bitcoin which consists of more than 2,000 BTC. The Bitcoin asset is now worth more than USD 150 million or equivalent to IDR 2.3 trillion, assuming an exchange rate of IDR 15,518 per US dollar.

The abundant Bitcoin ownership from El Salvador is predicted to be able to lift poverty and slump in the country. It's interesting to listen to what the phenomenon of El Salvador is like, a rich country due to Bitcoin.

The value of cryptocurrencies, Bitcoin, continues to creep up. As a digital asset, Bitcoin has reached its new all-time high or new all-time high (ATH) above US$70,000. This value is equivalent to Rp1.08 billion if the exchange rate assumption is Rp15,570.

The soaring value of the Bitcoin currency is certainly very profitable for investors holding this digital asset. One of them is the country of El Salvador which has invested and accepted BTC as legal tender since several years ago.

The use of cryptocurrencies as a transaction tool began when President Nayib Bukele's administration issued the Bitcoin Act in September 2021. Since the implementation of the policy, El Salvadorans can use Bitcoin to pay for goods, services, and taxes.

The breakthrough made by the country of El Salvador regarding digital currencies is indeed very surprising. Experts estimate El Salvador is capable of becoming one of the richest countries in the world thanks to its Bitcoin asset holdings.

Silicon Valley-based Venturan capitalis, Tim Draper, said El Salvador is developing into an innovative country. He assessed that the region could transform into one of the most interesting places in the world. However, the development process takes time that is not instant.

Maybe within 30 or 40 years, El Salvador will change from the poorest and most crimes countries, to one of the richest and most innovative countries in the world, in just that period of time. This is just because they use Bitcoin," said the Draper Team.

El Salvador is often referred to as a pilot country for other countries that want to penetrate digital assets. The Draper team said that if Bitcoin penetrated USD 100,000 or the equivalent of IDR 1.5 billion, then El Salvador might be able to pay off loans to the International Monetary Fund (IMF).

A similar opinion has also come out of the mouths of Alexander Mamasidikov, the founder and CEO of CrossFi, a platform to connect traditional banking with blockchain. He is a poor El Salvadoran country that can be financially independent immediately.

Mamasidikov assesses that when El Salvador becomes an independent country, it can fully focus on overcoming internal problems. Countries can carry out important internal tasks in the development of the modern world.

That's a review of El Salvador which is predicted to be a rich country due to Bitcoin. But so far President Bukele still doesn't want to sell government Bitcoin ownership. Also read

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