US venture capitalist: If Bitcoin rises to $100,000, El Salvador's holdings will earn more than the IMF loan

billionaire and American venture capitalist Tim Draper stated this week that if Bitcoin were to rise to $100,000, it could enable El Salvador to repay its loans from the International Monetary Fund (IMF) "and never have to talk to them again."

It is reported that El Salvador owes the International Monetary Fund approximately $80 million, while holding 5,913.76 BTC. Therefore, if Bitcoin were to rise to $100,000, El Salvador would gain $189 million in profit from its Bitcoin holdings, surpassing its IMF loan.

However, this calculation is based on two assumptions:

1. Assuming that the country's Bitcoin is not pledged, i.e., it has not been used for other purposes or pledged for other loans or contractual obligations;

2. Assuming that non-IMF debts are ignored, which amount to billions of dollars, the country will be able to directly transfer the profit from its revalued Bitcoin holdings to the IMF without first repaying higher-ranking creditors.

As both of these assumptions are difficult to achieve, El Salvador may need far more than $100,000 worth of Bitcoin to repay its IMF debt, as well as all of its other creditors. (Protos)