Max Keiser warns Bukele about the risk of exploiting the gold mine in El Salvador

President Nayib Bukele’s decision to accumulate bitcoin (BTC) and gold, as treasures of El Salvador, has sparked an intense debate in the community that revolves around cryptocurrencies. Max Keiser’s advice has fueled this debate, turning the country into a laboratory of economic experiments that attracts the attention of specialists and enthusiasts from around the world.

The former host of the renowned television show Keiser Report, who months ago said that “we are entering the Bitcoin world war,” is now issuing a strong warning about the value of gold. According to him, sell the gold metal that is owned, “at an appropriate price”, in exchange for bitcoin It is the only way to obtain profitability.

Keizer adds that bitcoin is demonetizing gold, so much so that it could even drive its value to zero. “The number of potential gold buyers is rapidly decreasing, and without buyers, the mined gold will be worthless,” warns.

The maximalist bitcoiner thus reacted to a message on the social network This is just at the moment in which its ruler highlights the giant deposit of gold metal that exists in the rich and mineralized area known as the Pacific Ring of Fire, of which a small portion of land belongs to Salvadoran territory.

Bukele and the Ring of Fire of El Salvador, promise of wealth?

Bukele’s proposal to exploit El Salvador’s gold reserves has continued to generate debate. While the president promises an economic rescue and job creation, experts question the viability of this long-term strategy, arguing that the value of gold is increasingly uncertain and that bitcoin offers a more promising alternative.

That is precisely what the famous cypherpunk Adam Back recommends to Bukele, who, like Max Keiser, maintains that the best thing is: “Extract the gold, buy bitcoin. Another bitcoin mining method. The most important sign that this strategy is the most effective is that the BTC adoption curve has risen, now that there is greater accumulation of the digital currency by companies and interest has been aroused by consumers. States.

Back notes that bitcoin adoption could invalidate the “diminishing returns” theory associated with bitcoin halving events, where the reward for mining is reduced. Instead of diminishing returns, Back suggests that new users are compounding the effects of adoption, pushing Bitcoin onto a steeper trajectory on its S-curve.

In essence, the declaration de Back indicates a change in the Bitcoin narrative. Instead of focusing on each halving and its potential impact on mining rewards, the emphasis is now on user adoption. This change in perspective suggests a more optimistic projection for the long-term growth potential of the most popular digital currency in the ecosystemwith the possibility of achieving significantly higher market valuations in the future, as has occurred throughout its history.

Scarcity as a true driver of value

With the world showing a growing interest in bitcoin, it becomes more scarce, precisely due to the fact that the scarcity principle is established in its code. Although coins continue to be issued, given that more than 4,200 bitcoins are mined every day, it is determined that more than 21 million bitcoins will never exist.

The same has historically been happening with gold, which at this time has experienced a notable increase in price. This is driven by the fact that many investors turn to it as a long-term store of value, especially in times of stratospheric government debt, as reported by CriptoNoticias.

However, everything could be changing, to the point that some analysts see that bitcoin could replace gold as the main store of value asset in the next ten years. This is due to the nature of BTC as an appreciating asset with low correlation with inflation, unlike gold, explains investment management firm Bernstein.

All this happens at a time when the largest gold deposit in the world has been discovered. It is 1,000 tons, valued at 83 billion dollars, and discovered in the province of Hunan, in China.

By increasing the supply of gold by 0.123%, The new discovery could unbalance the relationship between supply and demand in the commodities market. According to the law of supply and demand, an increase in supply tends to decrease the price. This could lead to greater volatility in the gold market and intensify its competition with bitcoin, which has gained ground as a store of value.

In conclusion, selling the gold that is extracted on Salvadoran soil to buy bitcoin can be considered a bold bet for your future. By doing so, the country reinforces its position as a pioneer in the adoption of digital assets and a benchmark in the adoption of BTC in its national treasury, diversifying its reserves and opening doors to new economic opportunities.