“No international organization is going to make us do anything, anything at all.”
—El Salvador Treasury Minister Alejandro Zelaya’s reply to the IMF’s demand to drop Bitcoin as legal tender.
RIGHTEOUS KILL
Shots fired. I have my opinions on how El Salvador’s president Bukele could’ve gone about implementing bitcoin as legal tender better. Education being one of those things; and making the shitty Chivo wallet open source, or just paying Jack Mallers (Strike LN app) the money he and his team requested, and thus having it built right the first time. When I was in El Salvador last year, nobody I talked to really knew what decentralization was, and assumed bitcoin behaved like a stablecoin—this is obviously improving rapidly on the ground. I also had trouble with Chivo wallet the entire time. I’ve heard this has improved as well, and wouldn’t be surprised if the anti-bitcoin crowd is aiding the attention here with hyperbole. Let’s not forget the trouble our all-powerful US federal government had rolling out a simple healthcare website, and the trouble most states had with unemployment websites last year—a large percentage of claims which were fraudulent.
The most important moment in bitcoin’s history since it went live January of 2009, was Segwit2x in my humble opinion, which was where the majority of the mining hashpower, VC’s, and Coinbase supported larger block sizes. They were soundly defeated and embarrassed. The second most important was Mt. Gox, when bitcoin was very young and fragile, it wasn’t clear afterwards wether or not bitcoin would survive, but surviving that travail was so important. What El Salvador is about to do could potentially be more important than both of those—bonds. In fact, I’m going to go out on a limb and say it is the most important. Most people are unaware of how important (or far reaching) this is. It’s a complete watershed moment that can usher in an entirely new asset class, literally rewriting securities as they’ve been understood for at least the last 100 years. The global bond market is (give or take) $120 trillion dollars. Most of those bonds are negative yielding junk. Most of these are highly regulated, centralized, and require IRS attached KYC to buy. Most retail doesn’t understand bonds let alone interact with them. All bonds are settled in USD or a nation’s fiat. Imagine bonds settled in BTC. That’s insane. Imagine these are non-custodial. Imagine these don’t have to be held to maturity because they’re tradable on the open market 24/7 with your non-custodial wallet. Let’s just say I think that Coinmarketcap is going to go through some changes in how they list things. Marrying bonds like this to small businesses (LLC’s, sole proprietorships, etcetera), product crowdfunding, small independent countries and municipalities (Algora, Lesotho, Luxembourg, Switzerland, Ireland, Iceland, etcetera), states and territories (Texas, Puerto Rico, etcetera), decentralized insurance, etcetera, could get ridiculous. The biggest loser would be altcoins (shitcoins) in general, and the second biggest loser would be nation states at large, because bitcoin would be competing with public debt a lot sooner than even I anticipated it would, which will pose significant challenges to the way a state (countries) organize. Remember the USD is the world's reserve currency, and we're not a net creditor nation like we were pre-Bretton Woods, we're a net debtor nation.
Bonds could be bitcoin's escape velocity to world reserve currency?
In fact, should these securities even be called bonds? ????♂️
This is a new asset class that borrows a little from blockchains, bonds, stocks, and derivatives. My belief is that if El Salvador’s first tranche of volcano bonds ($1B) is fully subscribed when they go to market next month, all hell is going to break loose later this year. Anyone remember the [shitcoin] summer of DeFi in 2019? Basically it’ll be that, except instead of an orgy of swaps, wraps, burns, mints, and stakes, enabled by dapps that do nothing but optimize token interactions to keep the orgy going, we’ll have real countries, real businesses, and real products, permissionless securities settled in bitcoin, not rando speculative tokens created by rando douches that besides never establishing themselves as money, somehow believe that money is TPS, TX cost, and throughput, things which are really features of a blockchain.
I’ve said again and again: DECENTRALIZATION AT LARGE will naturally build around a global stateless money. The real version of DeFi, and the real goals of Web3, will get built on, and around bitcoin, which has established itself as money, understands that simplicity is a fundamental security practice, and has the one-dimensional goal of separating money from State. It sure as hell looks like El Salvador’s volcano bonds are proving all of that. They'll get sold in $100 increments. I’ll be buying some for no other reason than to spite the IMF. This is a re-interpretation of Fight Club's ending--without the Semtex and violence. A peaceful protest.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments