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El Salvador government strikes deal with Bitfinex, Blockstream to issue $1 billion bitcoin bond

El Salvador government strikes deal with Bitfinex, Blockstream to issue $1 billion bitcoin bond



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39 Comments

  1. This is a showcase that a) these type of infrastructure investments can be funded without bonds issued by commerical banks b) can be issued Bitcoin natively on Liquid and don’t require ETH or similar.

    It’s too centralized on Tether / Bitfinex I guess. Risks trying to shoot down Tether legally have now increased as US and IMF don’t really want to tolerate a bond market independent of their banking system unless they have to.

  2. How would this work exactly? Say if you were to buy a 10-year bond of 1BTC using USD, then would the yield be on the BTC value, so that in 10 years’ time you’d get back 1.1BTC for a bond with 10% yield, which would be fine as $ value of BTC would be much higher by then?
    Otherwise if the yield is based on the 1BTC’s dollar value at time of purchase it would be a terrible deal with massive negative yield in real terms (i.e. if the maturity value of the bond in BTC at 10 years was based on 110% of the original $ cost of the bond). I think I’ve answered my own question 😂

  3. Govt is very clever to issue bonds in Bitcoin. Today $1 billion is 16,839 BTC. If those bonds need to be fully repaid in 10 years (dunno what the terms are) and 1 BTC is $1 million, the govt only needs to pay back 1,000 BTC to bondholders

  4. Honestly it’s gotten pretty funny seeing these gurus on YouTube making up excuses, “BTC is down because it’s a Fibonacci fart face full harvest moon cycle which is being impaired by quantum menstruation and multiplied exponentially by the square root of the number of times rain falls in Kathmandu.”

  5. This is El Salvador borrowing up to $1bn in bitcoin since they can’t afford to buy more. We’ll find out if they are able to pay them back in the future, especially if Bitcoin moons.

What do you think?

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