In the past few days, an article has been published on Forbes, the content of which is that a group of 50 cryptocurrency experts published that it is estimated that the price of bitcoin will reach 250,000 dollars by 2025 and 5 million dollars by 2030.
With more and more high-net-worth individuals, institutions and countries aware of the value of bitcoin, the demand for BTC value storage is increasing. Alexander Höptner, CEO of BitMEX, publicly pointed out that Hong Kong has always been one of the centers of blockchain and cryptocurrency development. He is very optimistic about bitcoin and other cryptocurrencies, and thinks that the adoption of mass market has really started, but it is now on Amazon's time. This is the turning point of the classic financial industry, and he thinks it may be a very, very positive movement.
With the acceptance of DeFi NFT Gamefi meta universe by mainstream institutions in the industry, cryptocurrencies other than BTC will find their own landing scenes. Although the increase of many tokens has been great in 2021, the bull market cycle may not be the same as the four-year cycle in 2013-2017, and the bull market cycle will be prolonged.
On the other hand, it is also very important whether countries in the world will adopt cryptocurrency as legal tender. In September 2021, El Salvador became the first country in the world to accept bitcoin as legal tender. Many cryptocurrency bulls are now seeing more countries take risks and accept bitcoin as legal tender in 2022, which provides interesting things for the new year, and the president of El Salvador also said that two other countries will join this line.
Some Latin American countries are also dealing with their own inflation problems. Using bitcoin as legal tender can help El Salvador's economic growth. In addition, the flow of US dollars is unstable, and the collapse of commodity prices led to a sudden reversal of the inflow of US dollars from countries such as Nigeria and Angola, forcing them to sell their US dollar reserves to maintain the exchange rate linked to the US dollar.
Actually, there are many countries like El Salvador that don't have their own legal tender. Many third world countries around the world are unable to print their own legal tender, so they all use US dollars as the hard currency of the country's circulation.
However, the Federal Reserve has no obligation to ensure the adequacy and liquidity of US dollars in third world countries like El Salvador, which use US dollars as legal tender, so there are many advantages for countries like El Salvador to use Bitcoin as legal tender. We should know that a large number of citizens like these third world countries don't even have bank accounts, which means they can't enjoy financial services. There are two advantages that using Bitcoin as legal tender can bring to them. First, it can reduce the transaction fee of exchange; second, it can reduce the risk of exploitation by third parties.
Then, in the next 2022, it is very likely that more third world countries will use Bitcoin as the legal tender of their countries, and it is even possible that some countries will use cryptocurrencies such as Bitcoin as their foreign exchange reserves or strategic reserves. This will be a prosperous scene!
Many are on the look out for who will be the next country to adopt Bitcoin and follow El Salvador’s footsteps? It should really have been Nigeria because of the huge number of youth population in it but the government is a pain in the ass.
Posted Using LeoFinance Beta
Yeah, many third world countries have faced many obstacles in accepting cryptocurrencies as legal tender, including issues of consensus among the majority.
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