Marty's Ƀent - November 22nd, 2021 - Issue #1116

Monday, November 22nd 2021 - Issue #1116

The emergence of bitcoin native bonds

As I’m sure some of you freaks are aware of already, the country of El Salvador has announced they will be issuing a $1B bond via the Liquid Network leveraging the expertise of Blockstream and Bitfinex. The bond will be split into two $500M tranches, one of which will be used to purchase and hold bitcoin for at least five years and the other of which will be used to invest in infrastructure for a new “Bitcoin city” that will have essentially no taxes on bitcoin within its borders. 

While I may not be a big fan of the idea of a Bitcoin city that is centrally planned (it comes off a bit commune-y to me), the idea of this kind of bond is very intriguing for many reasons. Many highlighted by our friend Masa Capital in the thread above. 

For investors who have an appetite for bonds, are unhappy with the current state of bond returns, and no intention to hold bitcoin in the near to medium-term this could be a very interesting offering. Coupon holders will be receiving yield payouts if the bitcoin purchased within the bond appreciates over the five year bitcoin lockup period that begins upon the bond offering. If Bitcoin does what it has done over the first thirteen years of its existence, Volcano bitcoin bond holders should expect to receive returns that are much better than the returns they’d receive from other types of bonds. If this bond offering succeeds, I’d expect to see many more bond offerings that use a proceed of the funds raised to purchase bitcoin to create added yield for bond holders. This could get really exciting. 

Beyond the intrigue of potential superior returns, the mechanics of the offering are very exciting as well. A nation state is using a federated sidechain to issue a bond. Like it or hate it, this is a pivotal moment for Bitcoin’s evolution as a financial platform. El Salvador is using the rails of a Bitcoin sidechain to offer a unique financial product in favor of traditional exchanges. If successful, the trading of this bond on the free market created on the Liquid sidechain will look much different than how bonds are currently traded. Faster settlement. Better auditability. More distributed. 

Taking it even further, the Volcano bond will be accessible to many more individuals as they will be able to buy partial shares with a minimum subscription purchase of $100. This is a very cool feature of the offering. 

These are my initial thoughts on the bond. My thoughts will probably evolve as time goes on, but as of right now I am cautiously optimistic that it will be seen as a pivotal point in Bitcoin’s early life. 

Onward!

 
Final thought...

On the road again… 
Share
Tweet
Forward
Hope you enjoyed today's issue. If you have any friends that are looking to find out more about Bitcoin have them sign up for this newsletter here:
 
Get Ƀent

Ƀent noun 1. direction taken, as by one's interests; inclination.

Thanks for reading Marty's Ƀent, a daily newsletter containing all the information I found interesting in the Bitcoin world in the last 24 hours.

Copyright © 2020  TFTC.io, LLC  All rights reserved. 

Want to change how you receive these emails?
You can update your preferences or Ƀent Over!
 

Key phrases

Older messages

The Sat Standard - Bitcoin Weekly - Nov 20 2021

Saturday, November 20, 2021

This week in bitcoin. Straight to the point. No bullshit. Every Saturday. View this email in your browser The Sat Standard This week in bitcoin. Straight to the point. No bullshit. Every Saturday.

Marty's Ƀent - November 19th, 2021 - Issue #1115

Saturday, November 20, 2021

Friday, November 19th 2021 - Issue #1115 The transition from HTLCs to PTLCs Like it or love it, this abbreviated week of rags from this dark corner of the Internet is hyper-focused on Taproot

Marty's Ƀent - November 18th, 2021 - Issue #1114

Friday, November 19, 2021

Thursday, November 18th 2021 - Issue #1114 Multisig options are expanding Here's some exciting news from Hugo Nguyen, the announcement of Nunchuck 2.0 which aims to "take bitcoin self-custody

Marty's Ƀent - November 15th, 2021 - Issue #1113

Tuesday, November 16, 2021

Monday, November 15th 2021 - Issue #1113 Taproot kicks Jevons Paradox into another gear While many on Bitcoin and crypto Twitter are squabbling over the semantics in regards to the definition of a

The Sat Standard - Bitcoin Weekly - Nov 13 2021

Saturday, November 13, 2021

This week in bitcoin. Straight to the point. No bullshit. Every Saturday. View this email in your browser The Sat Standard This week in bitcoin. Straight to the point. No bullshit. Every Saturday.

EthHub Weekly #199

Tuesday, January 18, 2022

Polygon integrates EIP-1559, Binance supports Arbitrum withdrawals, Set Protocol live on Optimism and much more! ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Decentralized Arts #22: Boson Protocol, Metaverse Apparel & Artist Showcase

Tuesday, January 18, 2022

BanklessDAO Weekly NFT and Cryptoart Newsletter ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Cardano Dan's Newsletter - Issue #182

Monday, January 17, 2022

We're Here ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

UNDRGRND DIGS 008

Monday, January 17, 2022

UNDRGRND DIGS 008 Mark Bailey — January 17, 2022 View original post Lugosi's Eyes by Luiz André Gama JANUARY 17TH, 2021 5 Artists From the UNDRGRND Collection UNDRGRND DIGS is a periodical feature

Creative Chronicle # 07

Monday, January 17, 2022

Events, Opportunities, and a new Coinvise event. 😳 ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Global Crypto Mining News (Jan10 to Jan16)

Monday, January 17, 2022

1. According to BTC.com, bitcoin mining has reached an all-time high of over 200 EH/s in the last three days after the network was restored in Kazakhstan. Previously it was widely expected that

Opening the Floodgates - The Daily Gwei #417

Monday, January 17, 2022

Layer 2's are now ready to serve you. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

👉 Pakistan Prepares For Heavy-Handed Crypto Ban

Monday, January 17, 2022

We bring you the top stories in crypto every week! Stories like... Monday, January 17th, 2022 Sign Up Your Weekly Update On All Things Crypto In Partnership With: TL;DR Pakistan Prepares for Heavy-

CryptoPage Newsletter - Issue 219

Monday, January 17, 2022

Crypto Daily News - Jan 17, 2021 View on the Web Archives ISSUE 219 January 17th 2022 Crypto News Fidelity expects more sovereign nations to acquire bitcoin this year. Fidelity Digital Assets, a

EOSweekly: Everything EOS, Name Service, EVM+, WAX Swaps, Greymass, UNDRGRND

Sunday, January 16, 2022

Everything EOS is back! EOS names getting a makeover. ENF camp provides ETH-EOS mediation and Defibox reunites WAX-EOS. Greymass progress report. Sub-second finality coming to EOS? Couple of UNDRGRND