El Salvador announced last week that bitcoin (BTC) is now legal tender in the country. Bitcoin is put on par with the US dollar, previously the only legal tender in the country. Bitcoin’s adoption could mark the start of a new trend, a trend that Celsius Network CEO Alex Mashinsky says could turn out well for the bitcoin price. He made his statements in a conversation with Kitco News.
Celsius Network is a platform that allows users to borrow digital assets. The CEO expects that the acceptance of bitcoin as legal tender can have a positive effect. In particular, countries with a large population could have a major impact. Mashinsky mentions countries like Brazil:
“So if we can get Brazil, if we can get Nigeria, if we can get countries with a large population to accept this as legal tender – you're going to see a huge price explosion because just the adoption of all those users creates a huge new will create demand.”
Mashinsky therefore sticks to his bitcoin price forecast for this year: “We can reach $160,000 this year. I stand by that prediction,” Mashinsky said. He does mention a number of factors that can actually have a negative impact.
Thus, China is a cause for concern for him. The country has always had strict rules for cryptocurrencies. Crypto exchanges, for example, have been banned for a long time. Now, however, the country is actively working to crack down on bitcoin miners. Among other things, they would consume too much power. In recent days we have already seen a number of Chinese provinces go after miners.