American Venture Capitalist: If Bitcoin rises to $100,000, El Salvador's holdings will yield more than IMF loans

Billionaire and American venture capitalist Tim Draper said this week that if Bitcoin rises to $100,000, it could enable El Salvador to repay its loan from the International Monetary Fund (IMF) "without having to negotiate with them anymore."

It is reported that El Salvador owes the IMF about $80 million, while holding 5913.76 BTC. Therefore, if Bitcoin rises to $100,000, El Salvador will gain a profit of $189 million from its Bitcoin holdings, exceeding its IMF loan.

However, this calculation needs to be based on two assumptions: 1. The country's Bitcoins are not pledged i.e., they have not been used for other purposes or as collateral for other loans or contractual obligations; 2. Non-IMF debts are ignored - these debts amounting up to billions of dollars - meaning the country would be able to directly remit profits from revalued Bitcoin holdings straight back into the IMF without first repaying higher-ranking creditors. As both assumptions are hard to achieve, El Salvador may need a far greater than $100k per bitcoin in order for it pay off its debt with the IMF and all other lenders.(Protos)