The bitcoin price, which peaked at around $70,000 per bitcoin in November, has since plummeted, wiping out roughly 40 per cent of its value and wiping $1 trillion off the total crypto market.
Fidelity Investments is now predicting that more countries, such as El Salvador and Tesla, will adopt bitcoin this year.
El Salvador adopted bitcoin as its legal currency alongside the US dollar in September and began purchasing bitcoin. This year, they said that it will buy another $500 million in bitcoin, which will be funded by the issuance of $1 billion in tokenized bonds, and that it plans to construct an ultra-low-tax “Bitcoin City.”
Other nations’ politicians are monitoring El Salvador’s bitcoin experiment for evidence of success, and several have stated they would explore a similar step if it pays off.
The mayor of Rio de Janeiro purportedly indicated this week that he aims to invest 1 per cent of the city’s treasury reserves in cryptocurrencies, while Francis Suarez, the mayor of Miami, stated last year that he wanted to invest a portion of the city’s money in cryptocurrencies.
