Bitcoin to be accepted as a legal tender by 5 countries

• The Bitmex CEO mentioned the key factors that play a major role in this prediction, first of which is remittance
• Following remittance, the second key factor in the system is inflation. As per the forecasts made by the IMF, 2.4 percent of inflation was recorded in the past year
• If these political leaders fail to make the right decision at any point, or make a rash decision, then it might lead to a huge downfall or damage a large amount of the country’s economy

As per Bitmex, the CEO of crypto exchanges, 5 countries will be accepting Bitcoin as their legal tender within a span of one year. As per him, all the developing countries will adapt to crypto by the end of 2022. The Bitmex CEO mentioned the key factors that play a major role in this prediction, first of which is remittance. El Salvador’s GDP consists of 23 percent of remittance, as of 2020. Globally only a total of 75 percent remittance is received by the countries that have moderate or low income. 

The entire money of remittance is supposed to be sent back to the countries in some manner. The entire supremacy by the Western Union has been creating some huge charges that have been paid by the common people. This charge of about 10 percent is being levied on money transactions. Such a system must be looked into so that the money goes back to the one who needs it, and that the system does not rip off the common people. 

Following remittance, the second key factor in the system is inflation. As per the forecasts made by the IMF, 2.4 percent of inflation was recorded in the past year, as far as the developed countries are concerned, and the developing countries had an inflation rate of 5.4 percent. While the ongoing crisis concerning inflation, people tend to find ways to liquidate the currencies, or to fiat them. Due to a supply rate of 21 million, Bitcoin holds the power to fix the inflation rate. Such a key point is being recorded by these developing countries, in and around the world.

Another most important and the game changing factor is politics. Politicians in today’s time play a very key role in a country’s economy. The onset of such a currency which tends to give higher rates of returns are a huge topic of interest to the politicians. Politicians are not far from entering into this field of cryptocurrencies. The first move taken by El Salvador is what will shed some light over the path to other countries, who are planning to get into this business. However, if these political leaders fail to make the right decision at any point, or make a rash decision, then it might lead to a huge downfall or damage a large amount of the country’s economy.