Tim Draper: If Bitcoin rises to $100,000, El Salvador's Holdings profits will exceed IMF loans

Billionaire and American venture capitalist Tim Draper said this week that if BTC rises to $100,000, it could enable El Salvador to repay its loans from the International Monetary Fund (IMF) “and no longer have to negotiate with them”. It is reported that El Salvador owes the International Monetary Fund approximately 80 million US dollars, while El Salvador holds 5913.76 BTC. Therefore, if BTC pump to 100,000 US dollars, El Salvador will earn 189 million US dollars from its BTC Holdings, exceeding its IMF loan. However, this calculation requires the following two assumptions:

1. Assuming that the BTC in that country is not collateralized, that is, it has not been used for other purposes or pledged for other loan or contractual obligations;
2. Assuming that non-IMF debts are ignored, these debts amount to billions of dollars, so the country will be able to directly transfer the profits from the revalued Bitcoin Holdings to the IMF without having to repay the higher-ranking creditors first. Due to the difficulty in meeting both assumptions, El Salvador may need well over $100,000 worth of BTC to pay off its IMF debt and all its other creditors. (Protos)