Dr. Saifedean Ammous, a renowned economist and author of “The Bitcoin Standard,” believes that El Salvador can become debt-free in the next five years if it accumulates Bitcoin. Here are the most important things to know about his prediction:
1. Bitcoin as a store of value: Dr. Ammous argues that Bitcoin is a superior store of value compared to fiat currencies like the US dollar. He believes that El Salvador can benefit from accumulating Bitcoin as a reserve asset, which can appreciate in value over time and help the country pay off its debts.
2. Bitcoin adoption in El Salvador: El Salvador recently became the first country to adopt Bitcoin as legal tender. Dr. Ammous believes that this move can attract more foreign investment and boost the country’s economy. He also thinks that El Salvador can leverage its Bitcoin holdings to negotiate better terms for its international loans.
3. Risks and challenges: While Dr. Ammous is optimistic about El Salvador’s potential to become debt-free with Bitcoin, he acknowledges that there are risks and challenges involved. For instance, Bitcoin’s price volatility can lead to significant losses if the country sells its holdings at the wrong time. Moreover, there may be regulatory hurdles and geopolitical tensions that could affect Bitcoin’s adoption and value.
In summary, Dr. Saifedean Ammous believes that El Salvador can become debt-free by accumulating Bitcoin over the next five years. However, this prediction is not without risks and challenges, and it remains to be seen how the country’s Bitcoin adoption will play out in practice.