‘Just because they embraced Bitcoin…’ – Tim Draper hails El Salvador

• Tim Draper expressed optimism regarding El Salvador’s aggressive Bitcoin investment strategy.
• He claimed more countries should embrace Bitcoin.

As the Bitcoin [BTC] halving approaches, several discussions have been centered around the king coin.

In one such compelling discussion, Tim Draper, venture capitalist and co-founder of Draper Fisher Jurvetson (DFJ), has his highly optimistic perspective on El Salvador’s Bitcoin strategy.

Draper went on to appreciate El Salvador, even stating that the country has humongous potential to become the richest country owing to its relentless investment in Bitcoin.

Draper’s opinion on El Salvador’s BTC strategy

Draper is quite famous amidst the cryptocurrency landscape for his bullish stance on Bitcoin. Even in recent times, he has gone forth and made a $250,000 price projection for the king coin post-2024 halving. 

In an interview with Rachel Wolfson, he openly appreciated the country for being one of the first nations to adopt Bitcoin as legal tender.

He speculated on the profound economic changes this could bring about within a few decades.

​Talking about the country’s previous socioeconomic conditions, Draper mentioned,

“Within maybe 30 or 40 years, El Salvador may go from the poorest, most crime-ridden country to maybe one of the richest, most innovative countries in the world just in that period of time and just because they embraced Bitcoin.”

When asked about his opinion on the correlation between cryptocurrency and politics, Draper highlighted that people must get past their attachment to “the mighty dollar” to make real economic progress.

El Salvador’s big Bitcoin victories

El Salvador has become relentless in its pursuit of economic growth via digital assets, especially Bitcoin. Recently, El Salvador transferred more than 5000 Bitcoins into a cold wallet.

The country now holds 5700 Bitcoins in total, amounting to approx $400 million.

El Salvador’s President, Nayib Bukele, has been at the forefront of this ambitious initiative, with the aim of creating a long-standing goal of purchasing Bitcoin on a regular basis.

In November 2022, he took to Twitter to announce his pioneering initiative. Furthermore, he stated, 

“We are buying one Bitcoin every day starting tomorrow. This continues until Bitcoin becomes unaffordable with fiat currencies.”

This financial maneuvering is part of a broader vision to achieve economic independence and reduce reliance on traditional financial institutions like the International Monetary Fund (IMF).

Countries should adopt Bitcoin-based economic alternatives

This bold move by El Salvador has sparked a global conversation about the role of digital currencies in national economies and their potential to disrupt traditional financial systems.

Meanwhile, BTC has already climbed to the ninth position in the global assets ranking.

Talking about this, Draper said,

“Regulations really do stymy creativity. The entire economy, the confidence of the country, the building mentality of the people really take off when a leader trusts their people and sets them free with very clear laws but not a lot of regulations.”

To keep up with the changing financial ecosystem, countries should adopt newer economic policies to include cryptocurrencies. Finally, this can make way for a “fiat-independent” economy.