Mark Moss argues that if Bitcoin hits $100,000, El Salvador could use it to repay its IMF loans and escape the fund's control. He calls the IMF's lending model a debt trap, citing The Confessions of an Economic Hit Man, and points to venture capitalist Tim Draper's support for El Salvador's Bitcoin strategy.
If Bitcoin gets to $100,000, which it's almost there— time of this reporting, we're a few thousand dollars away— Bitcoin would allow the country El Salvador to repay its IMF loans and never have to talk to the IMF again. Now, the IMF gives money to countries to basically indebt them forever. There's a book written titled The Confessions of an Economic Hitman that sort of breaks all this down in great detail. And instead of allowing nations to get out of debt, they just give them more debt. But what Tim Draper's saying here is this move that El Salvador made could now allow them to pay off the IMF debt and never need debt again.
