- Following critical comments from American economist Steve Hanke, President El Salvador has proposed to protect the city of Bitcoin.
- The economist warned that the plan is a prank to get the attention of a narcissistic president.
The crypto community’s favorite chairman came under heavy criticism from American economist Steve Hanke. The economist, who has long been a critic of Bitcoin, has in recent months condemned El Salvador after the president’s public support for Bitcoin and the subsequent adoption of Bitcoin in the country. In recent comments, 79-year-old Johns Hopkins University professor of applied economics questioned the country’s bond plan confirmed by the president last year. Bukele has announced plans to issue $ 1 billion worth of Bitcoin denominated bonds. However, its dollar – denominated bonds are slipping after a few economic shocks.
Hanke wrote on Twitter:
The Bitcoin City proposed by @nayibbukele is as prepared as Florida for the snow. The source of energy declared for the City is an idle volcano. This is just more antics to get the attention of a narcissistic president full of talk.
Bukele was shot after this comment. The comments make it clear that the economist does not know how to extract geothermal energy and confirms that he is not a big fan of President Bukele.
This man 😂
Of course you id10t is an inactive volcano!
Most geothermal power is extracted from wells near inactive volcanoes!
Why build a city below an ACTIVE VOLCANO? 🤦🏻 https://t.co/HGh6UGZ0u0
– Nayib Bukele 🇸🇻 (@nayibbukele) January 7, 2022
This is not the first time Hanke has scolded President Bukele for his part commitment with Bitcoin. To begin with, the economist is opposed to the country making investments in Bitcoin. Defining the purchases as «foolish» and «irresponsible», he asked the president to use his own money to buy Bitcoin and not taxpayers’ money. In another comment, the economist has warned that El Salvador is on its way to «financial ruins» with «Bukele at the helm.»
As CNF reported a few days ago, the country has made progress in preparing 20 new bills. These will provide the legal and financial framework for issuing $ 1 billion Bitcoin bonds.
The exchange between the two comes at a time when Bitcoin and the market in general are in trouble. Over the past few days, the price of the digital asset has hit its lowest level in 3 months, reaching $ 41,000. Despite the fall, there is still strong hope that Bitcoin will reach and break above the current high of $ 65,000 achieved last year.
Chairman Bukele is one of those expecting a great performance in the coming months, having predicted a price target of $ 100,000 by the end of the year. In addition, the president hopes that two more countries will accept Bitcoin as legal tender.
During the price drops, President Bukele was not shy about adding to the country’s reserve and sharing it with the world. This investment will contribute to the country’s economy as Bitcoin continues to flourish.
And we’re buying 21 #bitcoin for the event 🥳 https://t.co/xKo80nhYOn
– Nayib Bukele 🇸🇻 (@nayibbukele) December 22, 2021