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An attempt to answer your "what's next?" question: "What about you guys floating $1 billion in “Volcano Bonds” (backed by future #BTC mining output) for El Sal
by personlurking 5y ago
An attempt to answer your "what's next?" question:
"What about you guys floating $1 billion in “Volcano Bonds” (backed by future #BTC mining output) for El Salvador to pay off the IMF loan - so they can tell the IMF to beat it."
https://twitter.com/maxkeiser/status/1403023717429559299 https://twitter.com/maxkeiser/status/1403023717429559299
- gjulianm 5y agoIt's a $1B loan to a country with a low debt rating. It's a risky investment already, and now you add Bitcoin with its price volatility? I don't know how that's a good idea from the investors point of view.
- oogabooga123 5y agoI would buy some bonds just because of the idea that a nation could be free from international banking debt. Like a charitable donation, almost
- gjulianm 5y agoGood luck getting $1B to El Salvador as "almost charitable donations". Not to mention the effect that trying to sell $1B-worth of Bitcoin could have on the market (even just a portion, Bitcoin is accepted nowhere for so they'd need real currency).
- oogabooga123 5y agoI think the idea is that they would take funding in whatever currency they want, pay off the IMF with whatever currency they want, and then investors would get BTC, which is what they want. No need to sell $1bn worth of BTC.
- gjulianm 5y agoThat'd solve the "selling Bitcoin" problem but not the one of managing the risk of a US$ loan that is paid back with Bitcoin. I mean, ES could pay you back in time without defaulting and you could find yourself losing quite a bit of money. I think people would be asking for far higher rates in that case.
- PretzelPirate 5y agoThe loan could be specified in BTC and not pegged to an exchange rate. Then as long as long as El Salvador kept mining they’d be able to pay it back with interest. I suspect many BTC holders would be happy to participate in that type of loan.