Several crypto investors are flocking to El Salvador, the only country so far to legalize the BTC use for transactions. While the use of bitcoin is quite attractive, that is not a strong enough reason to capture the attention of the skyrocketing number of crypto investors in the jurisdiction.
Based on findings, the main reason for the influx is the planned Bitcoin City project revealed by President Nayib Bukele. Ever since he disclosed the plan, a high influx has been recorded, with investors debating the potential of investing in the ambitious project.
Bitcoin City Looks Promising
Alongside his revelation about Bitcoin City, Bukele also revealed the issue of bitcoin bonds to fund the project. The city will be situated in the area of Colchagua Stratovolcano. Unfortunately, the issue of bonds is on hold until further notice due to the market instability of the flagship coin.
Colchagua Stratovolcano is a mountainous area with excessive geothermal energy. The city will capitalize on the energy to mine bitcoin that will be used by the residents to pay taxes.
The project’s 3D rendering – a circuitous area with a plaza, is enough to show how promising it is if completed. It’s no wonder that crypto millionaires are moving to the region. If finally completed, the city will present a perfect opportunity for early adopters, with crypto-friendly regulations, low taxation, and minimal regulatory oversight.
Investors Are Offering Locals Massive Amounts for Land Around the Area
Reports from El Salvador show that investors from Europe and other regions are offering as much as x5 of the land price to residents living around the area. It’s discovered that these investors want to avoid dealing with the government directly for fear of delay and scrutiny.
So far, the only investor dealing with El Salvadoran officials is Brock Pierce, the head of the Bitcoin Foundation. Pierce, like other investors, has developed a keen interest in investing in the project and is in advanced talks with the government.
But, some locals are adamant about selling their parcels of land to wealthy investors. For instance, owner of the Mountain Spirit Resort, Luiz Diaz, revealed he got offers that were x3 higher than the amount he paid for the land where the resort is erected.
However, he’s afraid that the government might coerce them to vacate the land, considering that state laws permit them to seize the land for whatever use. Like Diaz, some locals are worried that they might forfeit their land to the government.
While some El Salvadorans appreciates Bukele’s plan and think it could alleviate the country from high indebtedness and poverty, thousands of El Salvadorans believe that the president’s approach is totalitarian. This has been manifested in several organized protests.