24.11.2021 08:33 PM
El Salvador's Volcanic Bitcoin Bonds Will Catalyze Digital Gold Growth Up To $1,000,000 Over 5 Years

This image is no longer relevant

Samson Mow, chief strategy officer of blockchain technology provider Blockstream, is confident that El Salvador's bonds will be a catalyst for the growth of digital gold up to $1,000,000 over 5 years.

Despite the current correction and the fall up to $58,000, Bitcoin still rose to its historical level, breaking through the milestone of almost $69,000. The capitalization of Bitcoin amounted to more than $1 trillion, and the entire cryptocurrency market is more than $3 trillion.

Mow is convinced that thanks to the introduction of Bitcoin into the financial system of El Salvador, as well as its volcanic bonds, the cryptocurrency will grow to $1,000,000 within 5 years.

El Salvador will competently finance its Bitcoins from its Federal Portfolio. The country's president, Nayib Bukele, will sell half a billion dollars worth of Bitcoins in 2 quarters. Now there are more than 1,100 Bitcoins on the account of El Salvador.

Bukele wants to build a Bitcoin City with low taxes for its citizens, which will run on the geothermal energy of the Conchagua volcano. El Salvador has a Bitcoin bond worth $1 billion, where half of this amount will be spent on the construction of Bitcoin City, and the rest will go to investing in Bitcoin.

Mow is also confident that if a dozen more countries issue such Bitcoin bonds, it will be a real sensation, and is at least half of the market capitalization of digital gold.

He also stressed that if at least ten more such bonds are issued, at least 5 billion U.S. dollars in BTC will be withdrawn in a few years, and El Salvador will be a digitalized mecca.

Volcanic bonds will be for a period of 10 years, denominated in U.S. dollars, and the interest rate will reach 6.5 percent. President Bukele urged his citizens to invest in these bonds if they want to earn as much as they wish.

However, some investors were skeptical of such an idea. This scheme may mean that the country will have little access to the traditional debt market.

The IMF also warns that Bitcoin can be dangerous for consumers and carry financial risks. At the moment, El Salvador wants to receive a loan of $1.3 billion from the IMF, this money should go to the construction of a new railway line, as well as a modern airport.

Vitaly Kolesnikov,
Analytical expert of InstaForex
© 2007-2023
Euro vs US Dollar
Select timeframe
Start trade
Start trade
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex always strives to help you
    fulfill your biggest dreams.
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
  • 30% Bonus
    Receive a 30% bonus every time you top up your account

Recommended Stories

Bitcoin: new bullish formation

Bitcoin is bullish and seems determined to approach and reach new highs. It's trading at 28,287 at the time of writing. In the last 24 hours, BTC/USD

Ralph Shedler 14:00 2023-03-22 UTC+2

XRPUSD breaks above January highs.

XRPUSD is trading above $0.44 while yesterday it was trading as high as $0.49. Short-term trend remains bullish. Price is making higher highs and higher lows. Momentum is bullish

Alexandros Yfantis 13:55 2023-03-22 UTC+2

Bitcoin consolidates around $28k ahead of Fed meeting: what to expect next?

As expected, the cryptocurrency market slowed its trading activity and began to consolidate near the $28k level. Bitcoin's trading activity also continues to decline, which is typical for intermediate periods

Artem Petrenko 12:15 2023-03-22 UTC+2

BTC update for March 22,.2023 - Tight range and potential for the breakout

Technical analysis: BTC/USD has been trading sideways at the price of $28.460 and I see potential for the breakout mode. Due to the strong upside trend in the background

Petar Jacimovic 09:17 2023-03-22 UTC+2

Technical Analysis of ETH/USD for March 22, 2023

Crypto Industry News: The administration of President Joe Biden published an economic report in which it was critical of cryptocurrencies. According to him, these are not an effective alternative

Sebastian Seliga 08:20 2023-03-22 UTC+2

Technical Analysis of BTC/USD for March 22, 2023

Crypto Industry News: Circle, the company responsible for issuing USD Coin (USDC) and Euro Coin (EUROC) stablecoins, has announced that it intends to expand its operations into France. It applied

Sebastian Seliga 08:19 2023-03-22 UTC+2

ETH/USD: upside continuation pattern

ETH/USD is trading at 1,795 at the time of writing. It seems undecided in the short term but the bias remains bullish. Temporary retreats or sideways movements could bring

Ralph Shedler 22:01 2023-03-21 UTC+2

Fed cancels its own efforts to raise rates

The price of the bitcoin cryptocurrency has increased over the last few days and is currently at the $29,000 level. The flat on the 24-hour TF can now be viewed

Paolo Greco 17:36 2023-03-21 UTC+2

Charles Edwards: Bitcoin is preparing to hit $100,000

On the 4-hour TF, the image is much more expressive. Over the past ten days, the price of bitcoin has increased significantly and has easily surpassed the level of $25,211

Paolo Greco 17:22 2023-03-21 UTC+2

Bullish break out in XRPUSD

XRPUSD is trading around $0.42. Price has now broken above the multi week downward sloping trend line resistance. Price has been respecting the key support at $0.30 for the past

Alexandros Yfantis 15:43 2023-03-21 UTC+2
Can't speak right now?
Ask your question in the chat.