New York City Mayor to Issue 'Bitcoin Bonds': Is Government Playing the Market or Is It a Trap?
New York City Mayor Eric Adams announced the issuance of the world's first municipal Bitcoin bond, BitBond — the government borrows money for road repairs but uses 10% to buy Bitcoin. When it's time to pay back, you get 1% interest and share in the Bitcoin price appreciation (I can't help but think: this operation is even wilder than DeFi!)
Why is he called the Bitcoin Mayor?
Three years ago, he took the lead in receiving his salary in Bitcoin, and now he's even bolder:
Challenging regulation: demanding the abolition of New York State's cryptocurrency license, criticizing it for hindering Bitcoin circulation;
Painting a big picture for crypto: establishing a Digital Asset Advisory Committee, calling for New York to become the center of the crypto universe;
Riding the Trump wave: capitalizing on Trump's designation of Bitcoin as digital gold, quickly following suit to issue bonds.
Global Trend Already Showing Signs
In March, Trump asked the Treasury to create a 'Bitcoin Strategic Reserve,' think tanks estimate that similar bonds could save $700 billion in interest over ten years.
Japanese listed company Metaplanet has issued bonds to raise $24.8 million, aggressively buying over 5,000 Bitcoins.
Warning Signs Abound
Government profits: even if Bitcoin goes to zero, they can save money with low interest, and if it rises, they can take a cut.
Retail investors gamble hard: Bitcoin's annual growth rate needs to exceed 53% to outpace regular government bonds.
Federal Reserve alarmed: this essentially undermines the central bank's power to print money.
When traditional finance dons the Bitcoin cloak, is it a ticket to a new world or an old scythe?
Would you buy in? Let's debate in the comments:
Supporters: government backing + Bitcoin appreciation, a win-win!
Opponents: 1% interest + Bitcoin volatility? Better to hoard coins myself!
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