Bitcoin is in deep cracks now, and El Salvador is famous for supporting the coin that pushed it to legalize the cryptocurrency in the country, something that the International Monetary Fund worries about now. The international organization brought out a statement about the potential risks and its current decline in the market that may gravely affect the country.
El Salvador Bitcoin: IMF Concerns on Support, Advises Country
According to CoinMarketCap's charts, Bitcoin is still at the first spot for cryptocurrency circulation and value, and its current value plays at $36,000. It is still far from the safety net below $30,000 and is currently generating funds and got out of its hellish decline of more than the projected ten percent in the graph.
However, it still is potentially risky now, says the IMF. It may be dangerous for countries like El Salvador that invested a lot in the coin since the El Salvadorian President's purchase of Bitcoin over the past months and keeping it as an asset for the country, as it faced massive popularity.
Not all were fans, though, as some are still new to the setup and confused regarding the coin.
IMF: Bitcoin is Unstable and Potentially Risky Now
The IMF released a statement, a wake-up call for El Salvador that focuses on warning the country to avoid Bitcoin now, especially as it is unstable and may cause harm to the financial and economic landscape.
The organization's Executive Board faced El Salvador to deliver a report. It also doubles as a warning for the potential doom that the country would face in cryptocurrency decline.
For now, El Salvador did not show any plans regarding its dropping of the coin, as it is a part of the country's recovery for the future.
Bitcoin's Bad Start in 2022
The top cryptocurrency in the world is off to a bad 2022 start, and that is because of the many disputes regarding the top coin's current valuation that put the crypto industry in deep mud. The IMF's advice to remove Bitcoin as its legal tender is something that the company may use and honor but may also ignore as they have the final say.
Currently, Bitcoin is on an upwards and downwards trend which saw the top coin go from more than $60,000 in value to $34,000 to $36,000. Nevertheless, there is a crash in the marketplace for the value of all cryptocurrencies. People who highly support the coin are getting confused as the community devotes itself to it.
2021 also saw a bad start in cryptocurrency valuations, just as NFTs and investments in platforms like Robinhood are soaring. Fans of the cryptocurrency will make it work, buying more of the coin to raise its prices and market value, despite being the top in the charts.
The phenomenon faces now is dangerous, especially for a country that made it a legal tender. For now, El Salvador has the final say, but it seems that Bitcoin's value is far from the light.
Related Article : Bitcoin Drops 10% Value to $34 k; Top Crypto Decline Due to US Federal Reserve's Raised Interest?
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Written by Isaiah Richard
