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Bitcoin to hit $100k in 2022 predicts El Salvador's Bukele

By Daniel Tyson

19:29, 3 January 2022

Stack of Bitcoin and transparent El Salvador flag
President of El Salvador makes bold predictions about bitcoin – Photo: Shutterstock

El Salvador’s President Nayib Bukele, a prolific Twitter and bitcoin evangelist, sent social media abuzz Sunday with a tweet storm of bold predictions about the cryptocurrency.

The tweets had the digit asset community celebrating with one of its biggest promoters calling the predictions "bold."

During his twitter frenzy, Nayib Bukele wrote to his 3.2 million followers that bitcoin is going to hit its financial zenith by climbing to $100,000 per coin in 2022. However, around 13:00 (UTC-5) Monday, the cryptocurrency was selling at $46,578, meaning its price would have to more than double. Bitcoin peaked at $68,783.63 on 10 November, according to Coinmarketcap.com.

Tweet by @nayibbukeleTweet by @nayibbukele

Predictions

Bukele, perhaps bitcoin's biggest believer, also predicted that two more unnamed countries will join his Latin American nation in legalising bitcoin as acceptable currency. Some think this would most likely occur in a Latin American nation struggling with high inflation. Officials in Paraguay have said their government is considering the option of making cryptocurrency legal tender. The inflation rate in Paraguay was 6.8% in December, according to Trading Economics,

Bukele then teased followers by tweeting of a “huge surprise” at the upcoming Bitcoin Conference in April. In June 2021, Bukele shocked the crowd by announcing one of the poorest Latin American countries would make bitcoin legal tender in a few months. In September, the country’s legislatures approved his plan, making El Salvador the first country to give bitcoin equal status as its national currency, the US dollar.

Additionally, he tweeted, cryptocurrency will have an impact in November’s US midterm elections, where lawmakers are at odds over how to regulate the growing currency.

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The issue has divided an already splinted US government. Some politicians, such as 2020 Democratic presidential candidate Andrew Yang and Republican Senator Cynthia Lummis of Wyoming have shown support for digital assets. Meanwhile, others, mainly Democrats, want protection for investors and Senator Elizabeth Warren of Massachusetts believes cryptocurrency will only benefit the rich.

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Insider reaction

“I think many people will vote for a bitcoin candidate over someone who is ignorant or doesn’t care about this issue,” said Alex McShane on his Bitcoin Magazine podcast. “More and more news is coming about this issue.”

As for Warren’s objection that bitcoin is only available to the rich, McShane said digital assets have lifted people out of poverty but did not give examples.

While critics give a scant possibility of Bukele’s dream of Bitcoin City, the president predicted construction will begin in 2022. The city is slated to have retail shops and housing, all the while being powered by the Conchagua volcano in southeastern El Salvador. Bukele’s big sale of Bitcoin City is there will be no taxes, except VAT.

In his final tweet in the series, he forecast that Volcano bonds will be oversubscribed. Late in 2021, announced plans to issue $1 bn in bonds to buy more bitcoin as well as for energy and mining infrastructure. The new city's proximity to the volcano is meant to facilitate geothermal energy for the project, he said at the time.

Read more: Bitcoin price prediction for 2022 and beyond: Will it test new highs?

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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