Topic: Everything you wanted to know about ES Volcano Bond and were afraid to ask! (Read 1738 times)

I also doubt the actualization of this project because by now if really the project was real, Nayib Bukele would have started something at the city center but as you rightfully said, every proclamation is just an audio and no action to develop the city. If really the Bitcoin City was to develop, it would have been done when the price of bitcoin hit $73k in the first quarter of this year. And El Salvador started Bitcoin journey in 2021, September 7. And Bitcoin was about $40+ as if then.
So as Bitcoin hit $73k, they would have started something to show that yes, they are serious about the Bitcoin City.

I am very skeptic about this project. Looks like an announcement only policy form the government.
As far as I know the vulcano energy is quite far from the proposed city location, but I might be wrong on this.
For sure funding via IMF, and from Bitcoin bond is not enough to secure the funding of the whole project as illustrated in the last presentations (and AI generated rendering as well).

Interesting news but our friend forgot to comment that it is not only this deal that will enable the development of Bitcoin City:


In any case, once the funding is secured, I look forward to seeing the developments of this project, which as is often the case with these projects, will take time.

El Salvador has secured $1.6 billions to fast track the investment of Bitcoin for the development of the Bitcoin City. They are preparing to receive $1.62 billions from Turkish company to develop two seaports in the Bitcoin City and the City will be powered by the Volcano Bond energy (The country volcanic energy).  El Salvador Secures $1.6 Billions to Propel the Investment For Bitcoin City Development
The City Designed.

The volcanic energy is closed to the city and the seaports are also there. According to the information with this new development, the ambitious Bitcoin City of Nayib Bukele, the President of El Salvador is very closed.

I don’t know how, but I missed one news over the last few days:
World’s First Bitcoin Bonds Receive Regulatory Approval in El Salvador


I understand that the bond characteristics have not been made available yet. However, I have seen multiple news sources reporting that the bond has a 6.5% coupon and a 10-year time frame. Probably these are the same characteristics of the then advertised Volcano bond. Personally, I find it unlikely that anyone would buy a bond at such a high price. The 10-year yield for a plain vanilla El Salvador debt is currently at 11%, so I believe that a bond with exotic features like this should have a much higher yield

The idea of the first-ever fully digital bond in the world blew my mind, bro! It's insane how they're going to trade that bad boy on Blockstream AMP. That's a platform used for digital assets on the Liquid Network. This means the whole trading activity will be entirely digital, making it cheap as hell for the issuer and the investors, yo! It's dope that they're letting peeps purchase it with USD, BTC, and USDT, making it more accessible to everyone. But, let's be real, we still don't know what the heck is gonna happen with this project. I'm optimistic, but like, lowkey scared too. Only time will tell if this bond will be a banger or a bust.

Speaking of this whole Bitcoin thing, it's wild that El Salvador is all about it. It's like they're trying to start a whole new ball game in finance. But, building a whole new city just to promote Bitcoin? That's some next level cray. Like, there are so many other things they could use that money for, you feel me? Also, this whole citizenship thing is sus as heck. Like, are they really using citizenship as a commodity now? That's shady AF. Props to El Salvador for taking a risk and doing something different, but they need to make sure they're not screwing over their own people in the process.

Just to let you know this thread has been translated into Romanian by my friend Gazetabitcoin:

El Salvador’s Bitcoin City Wins an International Design Award Good things in the world are achieved in a gradual process and not a hurry manner. Bukele, El Salvador president propagates it bitcoin city since 2021 but many criticized. And today the bitcoin city has started receiving international award. This is a good news in the year.
The city will be built at the Southern Part of Latin American and the

The Volcano Bond Energy of the Bitcoin City

The Volcanoes that are around the city will be used to power the city with electricity.  $1 billion bitcoin were estimated to build the city and as for now the authority has gathered $54 million worth of bitcoin.

Of course, the bonds are issued long term, so if the BTC price drops prior to the ability to issue then there would be a low subscription rate, and but if they reach their targets in regards to the subscription, then the terms for servicing the bonds are not very onerous, and El Salvador would be able to use the money for the stated purpose.  It seems that a BIGGER problem would be present if the BTC price continues to drop and fails to rally for several years.  The bond terms are not unfavorable to El Salvador, so El Salvador could pay the bonds over time, but it would be better for everyone if BTC prices would at least go up 6% or so per year.. and better yet if they were to go up more than that... accordingly, it seems way better to issue these bonds on a dip in BTC prices rather than prior to a dip, and yeah of course, we do not know if the price will stop dipping, so that is one of the risks that both El Salvador takes and also anyone who buys into such a bond that already has a stated purpose that involves investing in bitcoin and bitcoin-related projects.

It's nice to see good things in 2023 and even Bitcoin showing some improvements than last year. I hope you had a great move in this year.
What do you say if the Bitcoin price drops this year than last year and what will happen to the Volcano bonds too?

Coming back strictly own topic: apparently something is moving in the right direction regarding the Volcano Bond.

The law has been approved by the parliament and it will be soon enacted.




So it's like a comprehensive framework to be applied to the digital assets as explained in the detailed thread.

I remember how many people have downloaded the wallet and there were claims that millions have used Chivo wallet because it was free money and they want to experience the new things but now the usage have declined due to various factors and have not heard anything new from the leader as well Bukele and only investment was in last dip but they have lost more then $60M with the current dip.

The new bitcoin bonds might be helpful for them and new investor around the globe seek interest in them but will be happy to see what future plans they have from raising the funds and how well this goes because you need proper plans and usage from people to keep it going.

Bitcoin became a legal tender in El Salvador September 2021 leading to the commencement of Bitcoin adoption and since then there had been a continuous agitation on Bitcoin revolution in the country. I see this as a gamble and I hope it will pay off soon if he gain massive support from investors.


This is a rhetorical question and this is left to the country to decided on publicizing the total amount raised at the end of the day.
This is a great innovation that had been leading to the massive adoption of Bitcoin which I strongly support and I hope that if this becomes successful, other countries too could opt in to the use of fossil fuel from volcanoes to generate electricity even though the main purpose is not to mine Bitcoin. I hope to see this project become successful anyway!

there is no point setting aside $166m, hoping for a 6x in the following year.. to get to $1 billion..
but instead see it shrink to $40m where some people think 'well he should get started on building by selling the coin to start construction, if not then he failed to meet promises'


instead the obvious/smart thing is buy some more coin while cheap.. and to wait for the set aside budget to get to $1b .. and then do the project

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separate from the bond stuff

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the chivo project of sept 2021-jan 2022 WAS NOT BITCOIN
it was the crappy flawed subnetwork phishing bitcoins branding.. called lightning
lightning failed el salvador citizens

the guy from strike pretending he was offering chivo a bitcoin solution without the blockchain
bitcoin is on the blockchain, bitcoin never leaves the blockchain
the strike guy was actually highlighting 'lightning this'.. 'lightning that'.. 'lightning is bitcoin'... 'lightning is chivos btc'  meaning he was calling LN bitcoin in september and praising it . but by january they were saying "bitcoin failed"

malicious lot of idiots in the lightning crowd
fast enough to rip off reputation. but even faster in absolving themselves of responsibility, shiftng blame to say bitcoin is broke..

Yes.  Probably just caught me from a bad angle, and in the end I am not really bothered so much whether I agree or disagree with someone, and there are some members I disagree with a lot, yet they back up what they say.. rather than just outlining disagreeable conclusions.

Many of the longer term bitcoin focus members had considered that various aspects of El Salvador's approach was correct because they purposefully said that they were not getting into shitcoins and they were staying bitcoin focused - but that did not prevent some issues with the Chivo wallet and various ways that the $30 credit was either gamed or abused.. so surely, it can be problematic when free money is given out - even if that free money largely may have had good intentions to incentivize poor people to get started and to look into bitcoin.

Some aspects of adoption in El Salvador is not going to be easy to measure, and I am not necessarily going to deem some projects as failures merely because they might have had to be rethunk or implemented later or even designed in ways that hardly resemble the original proposals - so in some sense, many of us will end up learning from earlier mistakes and my thinking is that as long as the earlier endeavors had good intentions to build, then value still can be gained from them, even if they might not end up being successful... and surely also sometimes we may have to consider if there might have been bad intentions from the start with some programs, so if a program is implemented, but there is no intention for it to be successful, then some of those kinds of efforts may well end up being bad uses of public monies.

If you follow my fellow Bitcoin Italia Podcast friend in Central America, you will discover that actually the Bitcoin Law did nothing for the poor people, unless giving the 30 USD.
Chivo Wallet is basically not used anymore, and bitcoin usage is basically zero in El Salvador.

The introduction of self has been done in the Beginners & help BoardHow I found here.. For the Bukele and bitcoin, I am not against the either. But a supporter of the both. I support Bukele because he is a very good example to other countries' governments on bitcoin. I decided to made the comment with the information under your thread because your thread is related to the information. If not I would have created a separate thread for but there was no need when there is an existing thread. I am a pro Bukele for adopting bitcoin and trying to make things easy for his citizens if things work out to the way he wants from bitcoin. I am also a pro bitcoin.

You can't say we didn't see it happening, can you?
The exact scope of this thread is trying to debunk the myths a leader of a tiny Central American state tried to sell to his own electors.
I am not a fan of Bukele, I am not going to bend my knee in front of him only because he said the word "bitcoin", other did, maybe for a personal profit (insert your favorite toxic maxi's name here) of because of stupidity.

Regarding the above post from @JJG, consider it as a warm welcome to this forum. Where you will bump in one of his wall of text.

If I can freely interpret his thoughts: "introduce yourself to the forum, explain what bring you here and your attitude toward our mutual orange friend before posting something that could be read in opposite ways (is your post against bitcoin or against Bukele? To me, it is the latter, but maybe not everyone could read the same interpretation).

What do you believe that all of these failed bitcoin-related predictions help to accomplish?

What do you get out of the fact that there may well be a lot of failed bitcoin related predictions?

You are pretty damned new to this forum, with only about one week since you had registered here.  Do you own any bitcoin? Do you have any bitcoin investment related plans?  Have you known about bitcoin for longer than the timeline of your forum registration date?

What do you think about bitcoin as an investment?  Are there better investments out there?  Do you believe that there might be more solid ways of viewing the future and/or making predictions?  Of course, it tends to be really easy to describe so many ways in which past predictions have failed to come true, but at any point in time, each of us has to decide for ourselves how we are going to invest our time, energies, psychology and finances, and these do not necessarily need to be all or nothing kinds of investments - even though at the same time there does tend to be a decent amount of value towards having some focus in terms of how any of us might be thinking about how we are investing our own limited resources.  

For sure, governments and institutions have some further considerations because they are likely acting in representative capacities, so likely the best of representatives would be attempting to match their spending of resources in line with the persons/entities that they are representing... but otherwise, they may well be making a lot of similar kinds of trade-offs in terms of balancing whether and how to invest.

Edit: 
By the way, I did just look at your post/merit history and I did notice that you had created a thread about your "first bitcoin" buy, and so even though I have not had a chance to look at that thread yet.. I might be able to go through that thread later down the road... That thread is already getting into 4 pages and it has ONLY been four days.

.

Bukele Predicted a lot of things in 2022 and all seem to be failed. First he Predicted that bitcoin price would climb to $100,000 and that was not realized.

The second, he Predicted that two countries would adopt bitcoin as a legal tender but it was only Central Africa Republic Adopted it, the second was not realized.

Thirdly, he said, bitcoin will have influence in US election in this year. The Prediction of The Volcano Bonds that will be used to create the Bitcoin City is still a futuristic Prediction that can be realized.

This is the fourth one: 👇

The fifth one is still on subscription of the Volcano Bond which which was failed due to the Russia and Ukraine war.

The six one would have been Predicted in the bitcoin conference Hall in Miami but president Bukele didn't appear based on conflict in the country.

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