If Bitcoin Collapses, El Salvador Will Be Completely Destroyed

El Salvador’s economy is directly proportional to the price fluctuation of Bitcoin.

With the continuous fluctuation of popular cryptocurrency, the cryptocurrency market has begun to disappoint cryptocurrency investors all over the world. The prices of TRA, Cardano, and more cryptocurrencies are experiencing a sharp decline. Meanwhile, cryptocurrency investors began to pay attention to the investment of the new Bitcoin paradise El Salvador and its Bitcoin. The emerging fear is that if Bitcoin collapses, there will be any drastic impact on El Salvador. In the highly volatile cryptocurrency market, the two are directly proportional.

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El Salvador is a Paradise for Bitcoin

Investing millions of dollars in Bitcoin can promote the economy of Bitcoin paradise. However, there are some disadvantages in investing such a huge amount in a highly volatile enterprise. If Bitcoin collapses at any time, El Salvador will focus on bringing new projects. El Salvador President nayib bukele has failed and brought controversy in converting the top cryptocurrency into the country’s official currency like the US dollar.

The volcano is inclined to issue $1 billion in bonds in 2022. These 10-year volcanic bonds will pay an annual interest rate of 6.5%, of which $500 million will be used to buy Bitcoin in El Salvador.
Concerns about the decline in Bitcoin prices are related to cryptocurrency mining. It has no economic profit because the average price of Bitcoin mining is 5 cents per kilowatt hour, while El Salvador’s production per kilowatt hour is 13-15%. Cryptocurrency investors believe that if the president promotes any Bitcoin related projects, it will be a disaster for El Salvador.

As one of the first countries to adopt the top cryptocurrency, Bitcoin paradise focuses on promoting the use of cryptocurrency in cities. Citizens are not keen to use Bitcoin as legal tender because they are used to the traditional financial system and are not keen on high-tech and Internet-based transactions. In addition, the dollar is stable, unlike Bitcoin, which can fall or impact its price at any point in time.

At present, the price of Bitcoin is $29811.34 and the market value is $568.56 billion. El Salvador seized the opportunity of low price and bought 500 BTCs at an average price of $30744. But the real concern is whether the first country to hold more than 2300 BTCs can prevent its serious consequences in the near future if Bitcoin falls more and more. It needs to plan more strategies to prevent any disaster from happening in Bitcoin’s paradise.