Global race to adopt Bitcoin will be the ultimate bull run

By Nigel Green

Bitcoin’s journey from an experimental digital currency to a multi-trillion-dollar asset class has been nothing short of remarkable. 

Yet, the most transformative phase of Bitcoin’s rise may still be ahead: the moment when nation-states begin competing to adopt it as legal tender. 

This, I believe, will be the ultimate catalyst for an unprecedented surge in Bitcoin prices, and it’s likely to happen sooner than many anticipate.

The El Salvador experiment

When El Salvador made history by becoming the first country to adopt Bitcoin as legal tender in September 2021, it sent shockwaves through the global financial system. Sceptics predicted doom and gloom, citing potential instability, inflation, and international pushback. 

However, the reality has been more complex and, in many ways, more positive. El Salvador's bold move has not only put the small Central American nation on the map but also highlighted the potential benefits of embracing Bitcoin on a national scale.

Despite the initial challenges, El Salvador has seen significant benefits from its Bitcoin adoption. Remittances, which constitute a large portion of the country’s GDP, have become faster and cheaper. 

The country has also seen a surge in tourism and foreign investment, as Bitcoin enthusiasts from around the world flock to the “Bitcoin Beach.” Furthermore, El Salvador has taken advantage of the global spotlight by issuing Bitcoin-backed bonds, a move that could pave the way for other countries to follow.

El Salvador’s experiment, while still in its early stages, has set a precedent that other nations are watching closely. 

As Bitcoin adoption continues to grow and its utility becomes more apparent, it is only a matter of time before other countries start to seriously consider following in El Salvador’s footsteps.

Which countries could be next?

The global financial landscape is ripe for disruption, and several countries could be poised to make Bitcoin legal tender in the future. 

These nations share common traits: they are often developing economies with high inflation rates, limited access to traditional financial services, and a strong reliance on remittances. For these countries, Bitcoin offers a unique solution to their financial challenges.

1. Argentina: Argentina, plagued by years of hyperinflation and currency devaluation, is a prime candidate for Bitcoin adoption. The Argentine peso has lost much of its value, and citizens have turned to Bitcoin as a hedge against inflation. The government’s restrictive currency controls have only fuelled the demand for Bitcoin. Legalizing Bitcoin could provide Argentina with an alternative to its floundering national currency and attract foreign investment.

2. Nigeria: Nigeria is another country where Bitcoin is gaining traction. With a young, tech-savvy population and a government that has struggled to stabilize the national currency, Bitcoin offers a way to bypass traditional banking systems and access global markets. Despite regulatory crackdowns, Bitcoin adoption in Nigeria has continued to grow, and it would not be surprising to see the government eventually embrace it as legal tender to bolster the economy.

3. Panama: Panama, like El Salvador, is heavily reliant on the US dollar. However, the country has shown a keen interest in cryptocurrencies, with lawmakers recently proposing legislation to make Bitcoin legal tender. Panama’s strategic location and status as a financial hub could make it a natural next step in the race to adopt Bitcoin, particularly as it seeks to diversify its economy.

Why it could play out sooner than expected

The race to make the world’s favourite crypto legal tender is likely to accelerate as more countries recognise the benefits and the global financial system continues to evolve. 

Several factors suggest that this scenario will play out sooner than many anticipate.

1. Increasing global adoption. Bitcoin’s adoption is growing at an exponential rate. As more individuals and institutions embrace it, the pressure on governments to adapt will only increase. 

Countries that move quickly to adopt it as legal tender will have a first-mover advantage, attracting investment, tourism, and global attention.

2. Economic instability. The global economic environment is becoming increasingly unstable, with rising inflation, currency devaluations, and geopolitical tensions. In this context, Bitcoin offers a stable, decentralized alternative that is immune to government manipulation. As more countries face economic crises, the appeal of the digital currency as a safe haven will grow.

3. Competition Among Nations: Once a few countries successfully adopt Bitcoin as legal tender, others will be forced to follow suit to remain competitive. No nation wants to be left behind in the race to attract investment and innovation. As this competitive dynamic takes hold, we could see a domino effect, with multiple countries adopting Bitcoin in quick succession.

The bull case 

As nation-states begin to compete in the race to adopt Bitcoin as legal tender, the implications for Bitcoin’s price are enormous. 

The influx of demand from governments, combined with the increased global adoption by individuals and institutions, will create a supply squeeze that could drive crypto prices to unprecedented levels.

Moreover, as more countries embrace Bitcoin, its legitimacy as a potential global reserve currency will be solidified. This will attract even more capital from investors seeking to diversify their portfolios and hedge against inflation, further fuelling the price surge.

For those paying attention, this is the moment to recognise that Bitcoin’s next surge will be driven not just by market dynamics, but by the geopolitical shifts that compel nations to embrace it as a financial standard.

Author Bio

Nigel Green is deVere Group CEO and Founder