RE: A Look At El Salvador's Volcano Bond
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It's an interesting type of bond to play around with and I think it has educational value even if it fails. I am a little skeptical about why they want to make interest in USD because that makes it hard to tell what will happen if price dip during a bear market. Then again I guess they are assuming that BTC goes either sideways or up?
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I think it has to be priced in dollars or you won’t get access to traditional market investors since they won’t know how to price that risk! Bond holders have fiat payment obligations be it pensions, insurance companies, companies with treasuries so paying dividends in bitcoin wouldnt make sense for them
It’s jusy a mechanism they can buy but the backend of it leverages bitcoin