El Salvador will be the richest country in the world in 8 years?

[Japinat]

I saw this post and what do you think? Is it possible for him to become that rich in such a short time?

look at the post here https://boletimbitcoin.com/2022/05/19/com-o-bitcoin-el-salvador-sera-o-pais-mais-rico-do-mundo-em-8-anos/

I doubt that El Salvador will be the richest country despite making BTC as their legal tender.

Remember that there are several factors that you must consider on how you define a country's richness. Just because they can potentially acquire tons of BTC does not entirely mean that they will be the richest country. Unfortunately, a country can be rich if they are placed geographically right on the Earth. With their tons of natural resources, they may capitalize this advantage and turn it into richness and money.

While BTC may be the future of currency, this fact alone cannot withstand the other factor that may make a country rich.

Yes and even if the El Salvador have accumulated most of the remaining bitcoin, that won't still make them the richest country in the world. Being dependent on the bitcoin alone won't be enough to at least be a part of the Top 5 richest country in God's green earth, they should have a lot more to offer that will make their country grown in the years to come, which they don't have. Also, 8 years is to short, I reckon it would be at least 2 decades from now to see their improvement.

[JayJuanGee]

I saw this post and what do you think? Is it possible for him to become that rich in such a short time?

look at the post here https://boletimbitcoin.com/2022/05/19/com-o-bitcoin-el-salvador-sera-o-pais-mais-rico-do-mundo-em-8-anos/

I doubt that El Salvador will be the richest country despite making BTC as their legal tender.

Remember that there are several factors that you must consider on how you define a country's richness. Just because they can potentially acquire tons of BTC does not entirely mean that they will be the richest country. Unfortunately, a country can be rich if they are placed geographically right on the Earth. With their tons of natural resources, they may capitalize this advantage and turn it into richness and money.

While BTC may be the future of currency, this fact alone cannot withstand the other factor that may make a country rich.

Yes and even if the El Salvador have accumulated most of the remaining bitcoin, that won't still make them the richest country in the world. Being dependent on the bitcoin alone won't be enough to at least be a part of the Top 5 richest country in God's green earth, they should have a lot more to offer that will make their country grown in the years to come, which they don't have. Also, 8 years is to short, I reckon it would be at least 2 decades from now to see their improvement.

Your hypothetical is internally contradictory Japinat, in terms of presuming futility involving acquiring most of the remaining bitcoin and also still agreeing that bitcoin has value that might take El Salvador longer to catch up or to surpass other countries in relative wealth.

I don't disagree with your other implied point regarding some kind of need for El Salvador to have something that they produce of value that contributes to their ability to be able to accumulate bitcoin, so of course, it remains a challenge for any country to figure out how they can increase their generation of value so that they might be able to accumulate more bitcoin..

So if we were to get into some kind of fantasy hypothetical and El Salvador were to be able to generate enough surplus income that they could purchase (or mine) all of the new bitcoins, then currently they would be acquiring about 900 bitcoins per day (that is 144 blocks per day x 6.25 BTC per block), but so even if they were to ONLY accumulate 10 bitcoin's per day for the next 8 years - that would be 29,200 bitcoins (10 per day x 365 days x 8 years).  Even acquiring 10 BTC per day, it seems that El Salvador would be sitting quite pretty in that kind of a hypothetical in which they ongoingly accumulated small amounts of bitcoin on a regular basis  

Maybe in such a hypothetical of accumulating 10 BTC per day, they would not be the richest of countries in the world, but they may have increased their wealth quite a bit relative to other countries who had not been following such a consistently ongoing BTC accumulation strategy...(assuming that they do not lose the bitcoin along the way).

Maybe this is a bit of a fantasy for a country the size of El Salvador to accumulate 10 BTC per day, but the scenario seems to be much more realistic than your opening assertion Japinat that it would even be possible for El Salvador to acquire "most of the remaining" bitcoin... something like that (such an aggressive approach that would accumulate so much of the new BTC supply on an ongoing basis) is just not doable, practical or reasonable based on bitcoin's game theory and incentives, even for countries with the deepest of pockets.

[Scaterbrainn]

That’s not convincing. Bitcoin is being called a risky asset at the moment and a country that has accepted it as a legal tender might face issues in establishing it in their country.

[JayJuanGee]

That’s not convincing. Bitcoin is being called a risky asset at the moment and a country that has accepted it as a legal tender might face issues in establishing it in their country.

Bitcoin need not be an all or nothing proposition for individuals, institutions or countries, including in El Salvador bitcoin has been adopted as one of the currency options.

Another thing is that when any of us is engaged in the process of measuring risk, we are likely going to be better served if we consider such risk ideas in broader ways that help us attempt to establish which aspect of something that we consider to be risky.. is it the price volatility?  Is it the possibility that it could go to zero, and what are we measuring it against and are there ways that we can engage in investment and allocation tactics that mitigate risks that we perceive to exist, and even some unknown risks that might exist as well, which unknown risks exist with a lot of asset classes and currencies, so sometimes we will deal with various kinds of risks by attempting to figure out some balancing strategies in regards to whether and how we allocate and then if we might attempt to maintain our balancing of options based on a variety of individual psychological and financial considerations.

Governments, institutions and individuals will share some considerations, but of course, with something like bitcoin there will be some differences too.

[Cryptmuster]

Bitcoin need not be an all or nothing proposition for individuals, institutions or countries, including in El Salvador bitcoin has been adopted as one of the currency options.

Yes it's another payment method that is legalized by the state, but how convenient is it for the population, namely for small and possibly medium-sized businesses? After all, now for them, payment for goods and services must be offered without fail to the consumer, since this is provided for by law. In this sense, everything was done a little wrong, because they don't do it by choice, but in a sense it is a mandatory measure. The business gets paid in bitcoin but the price of bitcoin is falling and this can be a problem for small businesses, this is an increase in risks...

[JayJuanGee]

Bitcoin need not be an all or nothing proposition for individuals, institutions or countries, including in El Salvador bitcoin has been adopted as one of the currency options.

Yes it's another payment method that is legalized by the state, but how convenient is it for the population, namely for small and possibly medium-sized businesses? After all, now for them, payment for goods and services must be offered without fail to the consumer, since this is provided for by law. In this sense, everything was done a little wrong, because they don't do it by choice, but in a sense it is a mandatory measure. The business gets paid in bitcoin but the price of bitcoin is falling and this can be a problem for small businesses, this is an increase in risks...

You are talking gobbledy gook Cryptmuster.

No company in El Salvador is forced to hold bitcoin, and the law does not even contemplate such "forced" holding of bitcoin, even if they are big enough to be able to process payments (including bitcoin payments), then they need to be able to accept bitcoin as part of those payment services, but they need not hold bitcoin any bitcoin at all beyond the transaction..  They can convert whatever bitcoin that they receive to dollars or they can do whatever they like with such received bitcoin.

The purported concern that you are raising about poor widdo businesses being forced to accept bitcoin (and your false assertion that they have to expose themselves to bitcoin's volatility), is largely a nothing burger... so let's see how these matters play out for the country, for the people and for the various institutions who choose to operate in bitcoin... and who choose to figure out some various ways to get involved in bitcoin and perhaps even to retain some of their value in bitcoin.  

For sure, one of the great things about El Salvador in terms of being a sovereign nation is that they are providing options for their citizens that seem to NOT be available in a lot of other locations (or at least not so clearly asserted as being options) - even thought it is also likely that some countries (and even smaller subnational locations) are opening themselves to bitcoin and using aspects of El Salvador as a model regarding various bitcoin-related programs that they might implement and various kinds of bitcoin-related transactional options that they may well be opening up to their citizens and businesses that operate therein.  I have not heard of any location making it mandatory to have to hold bitcoin, and surely there might be more and more forcing of businesses in the future in terms of making sure that they retain and maintain options for customers to send them bitcoin.. but again, those kinds of measures still seem to be early and so far not really being enforced, even though some enforcement in that direction would be potentially within options that governmental institutions would have... and hardly seems oppressive in the whole scheme of current status of bitcoin in terms of its so far relatively low adoption levels, even while awareness of bitcoin continues to grow.

[Aanuoluwatofunmi]

Bitcoin need not be an all or nothing proposition for individuals, institutions or countries, including in El Salvador bitcoin has been adopted as one of the currency options.

Yes it's another payment method that is legalized by the state, but how convenient is it for the population, namely for small and possibly medium-sized businesses? After all, now for them, payment for goods and services must be offered without fail to the consumer, since this is provided for by law. In this sense, everything was done a little wrong, because they don't do it by choice, but in a sense it is a mandatory measure. The business gets paid in bitcoin but the price of bitcoin is falling and this can be a problem for small businesses, this is an increase in risks...

Sorry that you got the whole concept wrong about El-Savador @cryptmustser, Nayib Bukele government does not enforces, mandated or make a compulsory for every El-Savadoran to make use of bitcoin for their daily transactions, as far as i know the two currencies were acceptable which is the USD and Bitcoin, he considers every potential citizens that will rise through the impact of bitcoin in the economy, he also work in providing freedom that has hold alot of the people down to being limited to a certain level of standard in the country, the bitcoin adoption just didn't come in place like that, it has also brought in divers opportunity in which the main target still remains the people.

[NicNacCoin]

I saw this post and what do you think? Is it possible for him to become that rich in such a short time?

look at the post here https://boletimbitcoin.com/2022/05/19/com-o-bitcoin-el-salvador-sera-o-pais-mais-rico-do-mundo-em-8-anos/

El Salvador has legalized Bitcoin in its country through legal tender. He was the first to legalize Bitcoin in his country and simultaneously set up several Bitcoin ATM. Statistics from the country's finance department show that they currently have 2,300 bitcoins in their coffers. The government of the country is very much in danger due to the extreme fall in the price of Bitcoin. Here if Bitcoin goes from 200k to 500k dollars but El Salvador will not be able to become the first richest country in the world. El Salvador will never come to the top of the world leaving behind many developed countries. This is completely ridiculous.

[JayJuanGee]

I don't believe it has a chance since other nations have the ability to invest and impose various sanctions on El Salvador. Small nations will likely follow El Salvador's example, in my opinion. El Salvador won't be the richest nation in the world, regardless of what the future holds, I am sure of that.

I am glad that you got it all figured out.

[Mahanton]

They might stashed out lots of coins and if Bitcoin soars up its value in that 8 years then it would really be putting up on a situation which they do have that huge funds but it doesnt mean that it would overtake out those current rich countries that their main revenues arent really solely depending on one source but rather having multiples.El Salvador might overtaken them but it would be temporal.
Sustain is the key on here, what if they would really be using up all of those funds?  Well, this isnt talking about getting yourself on top rankings but on how
a country would be able to make it better than before when it comes to economic state.

[Pesona1]

I saw this post and what do you think? Is it possible for him to become that rich in such a short time?

look at the post here https://boletimbitcoin.com/2022/05/19/com-o-bitcoin-el-salvador-sera-o-pais-mais-rico-do-mundo-em-8-anos/

As the first country to totally adopt bitcoin, of course we hope that this can happen, but it seems like this will be difficult to happen considering Salvador's current capacity as a country that does have a relatively small state income compared to other developing countries, even though Salvador has bitcoin reserves with a large enough value but it seems difficult for them to become a rich country without any economic power or income from other larger fields.

[Doan Ha]

I saw this post and what do you think? Is it possible for him to become that rich in such a short time?

look at the post here https://boletimbitcoin.com/2022/05/19/com-o-bitcoin-el-salvador-sera-o-pais-mais-rico-do-mundo-em-8-anos/

Bitcoin may have enriched the government of El Salvador, but not as a country. The real wealth is that the country's economic order is stable, the military power has become stronger, and it is no longer controlled by other big countries. Everyone is in a state of balance. As the first country to adopt Bitcoin as a legal tender, El Salvador deserves praise. His success or failure will give many positive guidelines to latecomers.

[Franctoshi]

Despite if Bitcoin price gets to like $100k-$200k plus price value in the future ,this is not gonna be the only criteria to actually put them in the position to be the richest country within 8 years from now. So as awareness and adoption increases, more and more countries that is currently richer than El Salvador might also get their hands into Bitcoin (Buy BTC) as well and even own more Bitcoin than El Salvador. The possibility is very small.

[JayJuanGee]

Despite if Bitcoin price gets to like $100k-$200k plus price value in the future ,this is not gonna be the only criteria to actually put them in the position to be the richest country within 8 years from now. So as awareness and adoption increases, more and more countries that is currently richer than El Salvador might also get their hands into Bitcoin (Buy BTC) as well and even own more Bitcoin than El Salvador. The possibility is very small.

Even though sometimes there are periods in which it seems that the BTC price is depressed for long periods of time, we can look back at bitcoins history and we can see that if we go back in 4 year increments and we attempt to evaluate various dominant BTC price points, we will likely notice that there have been periods of time in which current BTC holders were accumulating BTC at much lower prices than are really available in subsequent periods.. and even if the BTC price dips back down, it does not necessarily go back down to prices in which later adopters are able to get into BTC and to acquire BTC at similar prices as the earlier adopters.. providing more and more evidence that the earlier that we are in the game and the earlier that we are figuring out ways to accumulate BTC, the more likely that it is more difficult and/or going to take later adopters more time to catch up (even if they can catch up with the same amount of capital).

In 2014-2016, there were a lot of folks accumulating bitcoin between prices of largely between $230-ish and $600-ish, and a lot of those seem like decent prices today.

In 2018-2020, there were a lot of folks accumulating bitcoin between prices of largely between $4k-ish and $8.5k-ish, and a lot of those seem like decent prices today.

What are we going to end up saying about the potential 2022 to 2024 BTC accumulation period? what is going to be the price range in which we are largely accumulating BTC?

Will it largely look like $16k to $28k?  And will those prices look good in 2026 to 2028?  There are no guarantees in terms of whether current BTC accumulators are going to look good in 4 years.  or whether later BTC adopters are going to need a lot more capital to acquire a similar level of a BTC position in BTC.

Let's take a hypothetical person who has $100k in capital in 2014-2016, s/he had been able to largely accumulate between 166 BTC and 434 BTC depending upon when s/he got into bitcoin in that time period with $230-ish to $600-ish BTC prices.

Let's take a hypothetical person who has $150k in capital in 2018-2020, s/he had been able to largely accumulate between 17.6 BTC and 38 BTC depending upon when s/he got into bitcoin in that time period with $4k-ish to $8.5k-ish BTC prices.

Let's take a hypothetical person who has $200k in capital in 2022-2024, s/he may well be able to largely accumulate between 7.2 BTC and 12.5 BTC depending upon when s/he got into bitcoin in that time period with $16k to $28k BTC prices.

Whether we are looking at countries, institutions or individuals, we have similar kinds of dynamics in terms of possible budgets that might be available during a certain period of time, and the kinds of decisions that will need to be made in terms of whether those budgets will be used to accumulate bitcoin or be used in other ways.

[nullama]

One thing that people don't tend to discuss is that with Bitcoin anyone can open a "bank" and receive money for goods and services, almost for free.

Compare that with the costs of opening a bank account for a business, many people would not be able to do that.

That means that heaps of people in El Salvador will now be able to sell goods and services to all the world, almost for free.

Of course anyone in the world can do that, but it's now expected in El Salvador. It's not a weird thing to say "I'll pay with BTC"

[Bobrox]

One thing that people don't tend to discuss is that with Bitcoin anyone can open a "bank" and receive money for goods and services, almost for free.

Compare that with the costs of opening a bank account for a business, many people would not be able to do that.

That means that heaps of people in El Salvador will now be able to sell goods and services to all the world, almost for free.

Of course anyone in the world can do that, but it's now expected in El Salvador. It's not a weird thing to say "I'll pay with BTC"

Saving huge amount of money in the Bank right now we have to pay for good and service with higher fees, actually our money cut off every months and depending Bank regulation. In my country have removed with Bank interest and not matter anymore when holding or saving much money in the back to earn interest at the end month. I agree with cryptocurrency and Bitcoin make us easy when saving our assets or our money there.

Never have to pay with good and service at every month and easy when withdrawing our money to be cash, I think little impossible when withdrawing huge amount in the Bank and need procedure waiting until few days withdraw with all our assets.

[adzino]

One thing that people don't tend to discuss is that with Bitcoin anyone can open a "bank" and receive money for goods and services, almost for free.

Compare that with the costs of opening a bank account for a business, many people would not be able to do that.

That means that heaps of people in El Salvador will now be able to sell goods and services to all the world, almost for free.

Of course anyone in the world can do that, but it's now expected in El Salvador. It's not a weird thing to say "I'll pay with BTC"

Yeah almost for free if they are willing to hold the coins and use it as a regular currency. But then again, they might become the victim of volatility. They received $1,000 worth of bitcoin from a sale. They keep it in bitcoin, but the next the price might become $900. He will have to pay more in bitcoin for the goods/services he buys for his business. He would be making a loss. But if he decides to convert it to fiat, it is no longer "free". You will usually pay a percentage fee on the conversation, or a platform fee unless you are doing direct p2p transaction with no third party involved which we all know is going to be hard and not convenient for everyone.

[Argoo]

Not a single, even the most perfect financial system is capable of leading the state to prosperity. The key to the successful development of the state is the growth of its economy. Therefore, with the help of bitcoins, El Salvador needs to think about where to invest possible financial investments in order to raise its economy. The 2,300 bitcoins currently available in El Salvador are not so much for the state as a whole. We need to make sure that money brings even more money. If you bet only on a possible increase in the price of bitcoin, El Salvador will still not achieve a good result. It will be eating up the budget and will not end in anything good.

[nullama]

~snip~
Yeah almost for free if they are willing to hold the coins and use it as a regular currency. But then again, they might become the victim of volatility. They received $1,000 worth of bitcoin from a sale. They keep it in bitcoin, but the next the price might become $900. He will have to pay more in bitcoin for the goods/services he buys for his business. He would be making a loss. But if he decides to convert it to fiat, it is no longer "free". You will usually pay a percentage fee on the conversation, or a platform fee unless you are doing direct p2p transaction with no third party involved which we all know is going to be hard and not convenient for everyone.

They don't need to convert to fiat over there. In El Salvador you can pay anything directly with Bitcoin.

So yes, sometimes it will go down in value, and sometimes will go up, but at the end of the day if you keep your buying and selling close to each other, then it shouldn't make a huge difference. And the money you save in Bitcoin should appreciate in value over the long term.

[Aanuoluwatofunmi]

Not a single, even the most perfect financial system is capable of leading the state to prosperity. The key to the successful development of the state is the growth of its economy. Therefore, with the help of bitcoins, El Salvador needs to think about where to invest possible financial investments in order to raise its economy. The 2,300 bitcoins currently available in El Salvador are not so much for the state as a whole. We need to make sure that money brings even more money. If you bet only on a possible increase in the price of bitcoin, El Salvador will still not achieve a good result. It will be eating up the budget and will not end in anything good.

To cap it all again, i also come across the updates that talks about how the ambassador to the US made a statement and declared that El-Savador is expecting more bitcoin investors to come in the country https://twitter.com/BTC_Archive/status/1610231317354147841?t=mfqLwVSsju4v4p0BU82wCA&s=19 this will also give room to diverse opportunities in bitcoin when we have any establishements and bitcoin investors in addition to the once on ground along with the implementation Nayib Bukele had made through bitcoin tourism, volcano bonds, bitcoin free zone, bitcoin beach, bitcoin education, there's no doubt on the possible outcome that may spring out of these because part of its dept had already been paid while the crime rate is well dealt with yo the minimal level