According to Odaily, billionaire and American venture capitalist, Tim Draper stated this week that if Bitcoin reaches $100,000, it could enable El Salvador to repay its International Monetary Fund (IMF) loan and potentially avoid further negotiations with the organization. El Salvador owes approximately $80 million to the IMF and holds 5,913.76 BTC. Should Bitcoin’s value rise to $100,000, the country would gain $189 million from its Bitcoin holdings, surpassing its IMF loan amount.However, this calculation is based on two key assumptions: first, that the country’s Bitcoin holdings are unencumbered, meaning they have not been pledged for other purposes or collateralized for other loans or contractual obligations; and second, that non-IMF debts, which amount to billions of dollars, are disregarded. This implies that El Salvador could use the profits from its revalued Bitcoin holdings to repay the IMF without first settling higher-priority creditors.Given the difficulty of meeting these assumptions, El Salvador may need Bitcoin to exceed $100,000 to cover its IMF debt and all other creditors.

By Binance News

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