There is a lot of talk about volcano bonds again recently.
Who doesn't want to pay $100 and receive a fixed amount of BTC every year for X years + receive todays BTC back after X years at tomorrow's value?
The issue is the other side of that trade...
If a country borrowed 1 BTC today to cover $30k with of costs, but was required to pay .05 BTC every year for 10 years, then required to pay back the 1 BTC.
If BTC goes higher in dollar terms, it would bankrupt a country...
steven / StevenMcClurg
npub1nv…0paqn
2023-04-02 20:07:23
Author Public Key
npub1nvxnc8egjlhpqtzrxmav3yk8frf3p7y9wujgwrcgwep2xr77xrvsa0paqnPublished at
2023-04-02 20:07:23Event JSON
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"content": "There is a lot of talk about volcano bonds again recently.\n\nWho doesn't want to pay $100 and receive a fixed amount of BTC every year for X years + receive todays BTC back after X years at tomorrow's value?\n\nThe issue is the other side of that trade...\nIf a country borrowed 1 BTC today to cover $30k with of costs, but was required to pay .05 BTC every year for 10 years, then required to pay back the 1 BTC. \nIf BTC goes higher in dollar terms, it would bankrupt a country...",
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