More Alpha on El Salvador Bitcoin Bonds
Our tribe creator 
I can’t say the information I give you here is alpha, but it’s information I am reading in my pursuit of financial freedom.
I did an article about the Bitcoin mining in El Salvador using geothermal energy from a volcano. And part of that article deals with Bitcoin Bonds so without further delay. . .
More Details about these bonds.
What I have read:
Bitcoin city will eventually attract bond-issued funding, allowing investors to get hold of tokenized Bitcoin bonds at face value. These bonds, available at prices as low as $100, will initially pay 6.5% interest annually. And El Salvador plans to raise $1 billion with these bonds.
What does it mean?
I think…
El Salvador will issue Bitcoin Bonds with Coupons, paying 6.5% annual, and you claim your interest by taking the Coupons to a qualified redeemer. The money raised from the bonds will fund construction of the geothermal power facility, which will in turn provide green or renewal energy for the nearby Government run Bitcoin mining facility
Something else I read:
Samson Mow, chief strategy officer of blockchain technology provider Blockstream, told the gathering the first 10-year issue, known as the "volcano bond", would be worth $1 billion, backed by bitcoin and carrying a coupon of 6.5%. Half of the sum would go to buying bitcoin on the market, he said. Nine other bonds would follow, meaning 5 billion dollars in Bitcoin would be taken off the market. After a five year lock-up, El Salvador would start selling some of the bitcoin used to fund the bond to give investors an "additional coupon", Mow said, positing that the value of the crypto currency would continue to rise robustly.
What does it mean?
I think…
El Salvador will issue Bitcoin Bonds with Coupons, paying 6.5% annual, and you claim your interest by taking the Coupons to a qualified redeemer. These bonds will have a ten year maturation period. They will pay 6.5% interest on the principle, or for every $100 dollar denomination bond, $6.5 dollars per year and $65 dollars in interest for a $100 dollar investment, or 65% return. Plus after a 5 year lock up period, El Salvador will sell the Bitcoin and make additional payments to bond holders.
Additional Reading
I read a great article by
about El Salvador’s Volcano Bond which provided solid information. Link
A excerpt from the article:
Together with Blockstream and Bitfinex, El Salvador has launched their first tokenised bond. The Volcano bond will trade as a token on the Bitcoin Liquid Network a side chain of Bitcoin. The terms for the bond are reportedly to raise $1 billion denominated in U.S. dollars, with a 10-year maturity in, apparently, January 2032. El Salvador would pay the holders of the bond 6.5% annual interest.
Once the bond has been fully subscribed, El Salvador will invest half of the proceeds in "infrastructure build" to improve the country and its mining operations and put the rest into Bitcoin. It will hold those Bitcoins for five years and then sell them over the remaining five years. If it makes money on those sales, then "50% of Bitcoin investment proceeds returned to investors once initial $500M Bitcoin investment is recovered.
- I wrote a general article about Bitcoin City in El Salvador, which covers the Bitcoin mining, the volcano and the new city to be built.
Link
- Excerpt
Nayib Bukele, President Nayib Bukele of El Salvador.
Bitcoin City Announcement
Bitcoin City is the current name for this future city. It will be a volcano powered city, and a volcano powered Bitcoin Mining Farm. A city with commercial and residential areas. It will also boast a port, rail service, an airport, and restaurants. There will be no property, payroll, income, or capital gains taxes in Bitcoin City. The city will be on the Gulf of Fonseca in the eastern region of La Union
Summary
It’s a great time to be invested in cryptocurrency. Cryptocurrency is being used for a multitude of purposes and will have a multitude of effects. We are still early, but the pace of change and adoption has quickened to an amazing pace.
