Held by the throat by debt, El Salvador made a strong choice by legalizing bitcoin on its territory. The main ambition of this decision is to free the State from the weight of the debt which weighs on it. Some believe that this goal will be achieved by the end of the decade.
BTC mining driving El Salvador’s financial freedom?
Will El Salvador one day put an end to the debt that weighs down its finances and potentially affects its growth? For Max Keiser, one of Salvadoran President Nayib Bukele’s advisers, the answer is yes.
The crypto-enthusiast and journalist by profession thinks it will happen by 2030. This, through bitcoin (BTC) whose use El Salvador legalized two years ago now. In a recent interview, the media man explained the dynamics around this prospect.
According Max Keizer explanations, these mainly concern activities related to bitcoin mining. It is essentially through the latter that the country intends to repay all of its debt.
To achieve this, El Salvador relies in particular on mining companies such as Volcano Energy. This company should make subsequent investments to produce the energy needed to mine BTC.
To this end, Volcano Energy intends to inject nearly a billion dollars over the period. Funds that will be used to produce energy from renewable sources such as solar and wind.
Enough to make El Salvador a global hub for BTC mining. A dynamic that will result in “to create jobs in the region, to increase the gross domestic product and to benefit the country”.
In this context, reinforced by the sustained adoption of bitcoin and the explosion of its price, Keiser sees El Salvador becoming rich. Maybe even one of the richest countries in the world.
All through bitcoin, whose price would be estimated at one million dollars, at the end of the decade. A prediction which is according to Max Kaiser a “mathematical certainty”, but which remains questionable. Although some investors like Cathie Wood and Arthur Hayes make similar projections.
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