2 ms·
Matt Levine had a good take on it: https://www.bloomberg.com/opinion/articles/2021-11-22/be-careful-with-volcano-bonds https://www.bloomberg.com/opinion/article
by detaro 5y ago
Matt Levine had a good take on it: https://www.bloomberg.com/opinion/articles/2021-11-22/be-careful-with-volcano-bonds https://www.bloomberg.com/opinion/articles/2021-11-22/be-car... (TL;DR: it's a good marketing play targeting people who want this to be a thing, it's actually better to buy "normal" El Salvador bonds and invest in Bitcoin yourself: the normal bonds give better interest and you'd get the full gains from the bitcoin profit, not just a share)
- xiphias2 5y agoHow can institutions that have obligations for performance but limitations in what they can buy get exposure to Butcoin? For normal people this bond doesn't make sense (except for the residence that they get), but regulated institutions may want a piece of it. We'll see.
- notahacker 5y agoI think if you're a regulated institution that wants exposure to Bitcoin you buy a Bitcoin ETF, not El Salvadorean government tokens on an unregulated iFinex marketplace which returns strictly less than an equivalent allocation of Bitcoin and El Salvadorean securities you can buy on regulated marketplaces.