The president of El Salvador, Nayib Bukele, has again gone bullish on Bitcoin. Bukele recently predicted that Bitcoin could reach the coveted six-digit figure in 2021, following increased adoption.
Bukele stated that in 2022, Bitcoin would gain in value and adoption in the use of the coin as a sovereign currency.
Bukele is bullish on Bitcoin in 2022
In a tweet posted on Sunday, Bukele stated that the primary cryptocurrency could soon hit $100,000. Additionally, he stated that the coin could be adopted by two more countries to endorse it as legal tender.
Bukele further noted that cryptocurrencies were a contentious issue during the US midterm elections held on November 8.
El Salvador made headlinesin2021 after the country endorsed Bitcoin as legal tender. This marked the first time a country endorsed a private cryptocurrency as the official currency, which created friction with the World Bank and the International Monetary Fund (IMF).
In November, Bukele announced plans to issue a $1 billion Bitcoin Bond with a maturity of ten years. Bukele noted that the bond would be issued through Bitcoin’s Lightning Network, and 50% of the proceeds from the bond would be used to create a Bitcoin City.
In 2021, many analysts had predicted Bitcoin would reach $100,000, but this failed to materialize as the coin peaked at around $69,000. However, El Salvador has been one of the greatest dip buyers, showing that the country is confident about the coin’s future gains.
Some analysts favour layer one coins
The crypto market failed to register any substantial gains in November and December 2021. The coin’s price correction to $47,000 has analysts divided. While some note that this dip could be a bullish signal, others state that the coin’s bottom is yet to be reached.
Some analysts have also predicted that Bitcoin will fall behind layer one protocols this year. These networks include Ethereum, Solana, Fantom and Avalanche. The four made major gains in 2021, which is expected to spill over in 2022.
The layer one networks are becoming popular with decentralized finance (DeFi) protocols, driving their value. The gains made by these tokens have also affected Bitcoin’s market dominance, which now hovers at around 38%. The coins outperformed Bitcoin in 2021, which could happen in 2022. Moreover, these coins are also attracting the same level of institutional adoption that Bitcoin is getting.
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