El Salvador’s president and ardent Bitcoin supporter, Nayib Bukele, made a number of forecasts about how bitcoin and the broader crypto ecosystem would behave over the coming year. The sale of volcano bonds, the establishment of Bitcoin City, the peak price of bitcoin, and its influence on American elections were some of these. On most of them, he fell short, though.
Nayib’s Predictions for 2022
Nayib Bukele, president of El Salvador, one of Latam’s leading proponents of bitcoin and the driving force behind the introduction of bitcoin as legal tender in his nation, made a number of forecasts regarding the state of the cryptocurrency market and its trends for 2022. The forecasts covered topics including bitcoin pricing, how bitcoin affects politics, and the evolution of many Bitcoin-related developments peculiar to El Salvador.
The first forecast, which Bukele estimated to be in the neighborhood of $100,000, was made public in a tweet on January 1, 2022. The maximum price that BTC ever hit was roughly $47,500, hence this did not come to pass.
Bukele’s second forecast predicted that two additional nations would recognize bitcoin as legal cash. Additionally, this didn’t materialize. However, as stated on November 12 by Prime Minister Terrance Drew, St. Kitts and Nevis did declare it will be looking into the possibility of making BCH legal tender by March 2023, provided the safety of our country and its citizens is guaranteed.
Another forecast was that bitcoin would play a significant role in this year’s U.S. elections. Even while bitcoin-related problems have become a part of the political and legislative landscape of the U.S. in 2022, notably with the death of FTX during the past two months, this forecast again fell far short of what was expected.
Forecasts Particular to El Salvador
The second section of Bukele’s prophecies focused more on Salvador-specific topics, such as the development of the city itself and the volcano bonds that the government would issue to finance the construction of Bitcoin City.
The fourth forecast made by Bukele was that work would begin last year on the geothermal-powered, bitcoin mining-friendly Bitcoin City. On January 9, 2022, Bukele made the final announcement on its development, stating that they were drilling additional geothermal wells to secure the energy required to power the city. This, too, did not happen, though.
This relates to his sixth forecast, which explained why there would be an oversupply of volcanic bonds. Volcano bonds were not issued in 2022, however, and Treasury Minister Alejandro Zelaya attributed the delay to the crisis between Russia and Ukraine and the collapse of the cryptocurrency market. The regulations enabling the issue of these bonds were still not ready, according to Bitfinex CTO Paolo Ardoino, who also said that these bonds will be further postponed in September.
It made one last, unexpected prediction during the Bitcoin Conference in Miami in April. However, Bukele was unable to attend the ceremony since El Salvador was suffering with a gang violence epidemic that started in March and the government’s response was criticised by the UN as being violent and inhumane.