RE: A Look At El Salvador's Volcano Bond

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People seem to think the world suffers from too much debt but the reality is that is suffers from too little high quality collateral. We saw in the GFC, that which was deemed as such turned out not to be.

Could Bitcoin be the collateral that adds more pristine collateral to the system. Bonds like this are effectively backed by BTC, at least in part.

Another thing, I dont know the capture and conversion efficiency of El Salvador of all those volcanos but I would redo all their existing debt by issuing energy bonds based upon the output there. Hell, a volcano can go hundreds of years churning out energy.

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yeah it's not about the amount of debt created it's about the quality and having future tax and full faith in government or corporate income as your backing has clearly shown it's limitations but because the game was built on it to a systemic level there wasn't much of a way out

Bitcoin and energy bonds are going to be a really attractive option for the fixed income market with trillions sitting in negative yielding positions. I am keen to see how this bond offering is subscribed and if it catches on the need for collateral is going to go through the roof and bitcoin is going to be the benefiary

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People seem to think the world suffers from too much debt but the reality is that is suffers from too little high quality collateral. We saw in the GFC, that which was deemed as such turned out not to be.

Could Bitcoin be the collateral that adds more pristine collateral to the system.

This is a great concept, adding quality to Bond collateral should attract more investors by attracting more conservative ones and enlarging the pool of prospective investors.

Posted Using LeoFinance Beta

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