El Salvador’s Bitcoin bond will certainly deserve $1 billion and also it’s going to get divided into 2 components. Fifty percent the bond will be used to start construction on a Bitcoin city. The second fifty percent of the bond will be utilized to purchase $500 million worth of Bitcoin.
Once El Salvador purchases the $500 million well worth of Bitcoin, probably sometime in early 2022, the coins will obtain locked up for five years. That Bitcoin will supply the collateral for the bond, making certain that all of the investors earn money off.
The Bitcoin bond is a method to bet on Bitcoin without getting exposed to all that volatility.