Volcanoes Could Push Bitcoin To $ 1 Million In Five Years, Leaving Ethereum, BNB, Solana, Cardano, XRP And Cro In The Dust

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Bitcoin and cryptocurrency prices have returned to shape in recent months after a summer lull in the markets, and despite some serious warnings.

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The price of bitcoin hit an all-time high of nearly $ 69,000 per bitcoin in November before falling again. Meanwhile, other major cryptocurrencies have made much larger gains than bitcoin over the past year, including Ethereum, Binance’s BNB, Solana, Cardano, and Ripple’s XRP, pushing the Crypto’s combined market capitalization at highs of $ 3 trillion.

Now, Samson Mow, chief strategy officer for blockchain technology provider Blockstream, has said he expects volcano-fueled bonds from El Salvador and bitcoin back to help the price of bitcoin climb to 1 million. dollars per bitcoin in just five years.

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The price of bitcoin has jumped this year, exploding by hundreds of percent, but the likes of Ethereum, … [+] BNB, Solana, Binance Cardano, Ripple’s XRP, and Crypto.com’s cro made much bigger gains.

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“If bitcoin hits the five-year mark, which I think hits $ 1 million, [El Salvador] will sell bitcoin in two quarters and get that $ 500 million back, ”Mow said, speaking alongside Salvadoran President Nayib Bukele over the weekend and explaining how the country could fund its bitcoin bonds, Reuters reported.

“If you get 100 more countries to do these bonds, that’s half the market cap of bitcoin there,” Mow said, adding that the “game theory” on bonds gave the former an advantage. issuer El Salvador and once 10 of those bonds were issued, $ 5 billion bitcoins would be taken off the market for several years.

“This will make El Salvador the financial center of the world,” Mow added.

El Salvador’s so-called “volcanic bonds”, designed to finance the construction of a new low-tax “bitcoin city”, powered by geothermal energy from a nearby volcano, will be bonds at 10. years denominated in US dollars and will bear a coupon of 6.5%.

“Invest here and earn all the money you want,” Bukele reportedly told attendees of an event closing a week of bitcoin promotion in El Salvador and comparing his plan to the cities founded by Alexander the Great.

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The price of bitcoin has skyrocketed over the past year, but its huge rally has topped below $ 70,000 … [+] Even as some smaller cryptocurrencies, including Ethereum, BNB, solana, cardano, XRP, and Crypto.com, have exploded and found new ground.

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However, the world of mainstream finance seems to have frowned on El Salvador’s volcanic-fueled bitcoin bonds, with prominent investors telling the Financial Times the program could mean the country has less access to traditional debt markets. .

“I don’t know who is going to buy these bonds, but it certainly won’t be us,” Kevin Daly, fund manager at Aberdeen Standard Investments, told FT.

Elsewhere, the International Monetary Fund (IMF), which is reportedly engaged in talks over a $ 1.3 billion loan deal with the country, has warned El Salvador that its adoption of bitcoin as legal tender would increase financial and risk risks. consumption.

“Given the high price volatility of bitcoin, its use as legal tender carries significant risks for consumer protection, financial integrity and financial stability,” IMF staff wrote in a mission statement. in this Central American country.

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