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- Tim Draper thinks that El Salvador will become one the most affluent nations.
- El Salvador accepted Bitcoin as their legal tender last year.
- Bitcoin was trading at the market price of $17,167.
Nayib Bukele’s Decision Will Pay-off
Since the heavy market turbulence in the cryptocurrency market, the sector has stirred doubt among the investors. Recently, the market started showing some stability after a period of heavy decline. Even after all this chaos, Tim Draper, a Venture Capitalist, holds a bullish perception on the crowned asset, Bitcoin. He thinks that the asset has the potential to turn El Salvador, a South American nation, one of the most affluent nations on the globe.
In September 2022, Nayib Bukele, President of El Salvador, announced that the country had officially accepted BTC as their official tender. Tim Draper said in an interview that his decision to accept the dominant crypto as their legal tender will “pay off over time”.
He said that “ There are just a few nations who have made similar moves as El Salvador. They are taking a step ahead to become the least affluent to one of the most affluent nations globally.” He mentioned the Central African Republic, Malta and Switzerland during the conversation. He added that “Switzerland is gaining benefits for their efforts to make Bitcoin a part of their economy.”
He is one of the early investors in Bitcoin and believes that virtual assets will experience a global mass adoption where the folks will utilize the assets for the basic life necessities. He stated that “Women are still an untapped demographic for BTC on a large scale.” Adding that “They control around 80% of the retail spending.”
Bitcoin is still the biggest cryptocurrency by market cap worth $330 Billion. The crypto asset tasted the all time high after in November 2021 where it changed hands at $69K. But the conditions became harsh, leading a bear run and shrinking its value by over 75%. Currently, BTC was trading at the market price of $17,167 at the publication time, down by 0.45% in a day.
The sector has witnessed the worst crypto winter since its inception, thanks to the events like LUNA collapse, followed by the liquidity events and the fall of FTX recently. The decline has affected the NFT sector too. Collections like Bored Ape Yacht Club (BAYC) have lost 90% in their value.
Metaverse tokens have managed to stay afloat in the unpredictable crypto waters this year. Tim Draper’s optimism may become a reality as companies around the globe are rapidly developing several aspects in the metaverse. Virtual assets will become an important element in digital economies as the people need different currency in this future realm.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
