The bigger picture: What does El Salvador’s Bitcoin city mean for the global crypto market?

Bitcoin city: Ain’t that an overstatement?

No, we aren’t pushing a fancy term here to make Bitcoin look important. It already is. On the other hand, Bitcoin City is an entirely relevant, physical concept, much like any other city across the globe. The only difference is that the Bitcoin City will be backed by Bitcoin-based funds instead of fiat currencies.

Simple, right! Well, as simple as this might sound, there are several forces at play to make this plan a productive reality.

And if you are wondering whether the bitcoin association ends with funding, there is much more to it than that. For the unversed, Bitcoin city will pan out like a coin with the city centre sporting a huge BTC symbol. Well, just for the kicks.

What, when and why?

If you are still wondering what this city aims to achieve, read on. Bitcoin city seeks to introduce a new lifestyle for the residents, free of payroll, property, and income taxes. But that’s simply scratching the surface.

With Bitcoin City, El Salvador plans to usher in a new era of digital education, sustainable energy reserves, and green mining. When the city becomes a reality, it will aim to achieve zero CO2 emissions and become a Bitcoin mining ecosystem driven by geothermal energy.

The timeline of setting up this fabled city is still under the wraps. However, the reason why it is the talk of the crypto market is that Bitcoin city will simplify the concept of foreign investments by eliminating cross-border delinquencies and bottlenecks.

And once investors across the globe can contribute towards the development of this city via Bitcoin Bonds, the crypto space will transform into something more comprehensive.

Bitcoin bonds: Is it yet another fancy term that required detailing?

Before we delve deeper into Bitcoin bonds, let’s contemplate investing in El Salvador’s epic Bitcoin city. Assuming that you are an investor with thousands of dollars parked in your bank account, should you simply send over a few hundred dollars to a random El Salvador-based bank account? Well, investing in Bitcoin city is nothing like this. Instead, this is where Bitcoin bonds come into play.

To understand the concept better, it is essential to know that Bitcoin city will eventually attract bond-issued funding, allowing investors to get hold of tokenized Bitcoin bonds at face value. These bonds, available at prices as low as $100, will initially pay 6.5% interest annually. And El Salvador plans to raise $1 billion with these bonds. Quite a hefty sum isn’t it!

But what’s in it for the investors and even the Bitcoin city. Long story short, the $1 billion will make way for a greener mining infrastructure and more Bitcoins. And the purchased Bitcoins will be sold in bits after the 5-year lock-in period, which will generate higher dividends for the investors. All in all, the entire setup will aim to incentivize the proponents of Bitcoin city.

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What would be the net impact on global crypto adoption?

Despite the technicalities in play, we shall now take a more dumbed-down route to better understand the impact of the purported Bitcoin city on the global crypto market. For starters, investors will have a field day with the ideated setup aimed at simplifying capital movements. And the dividend distributions are also expected to be secure and instantaneous.

Making this possible would be the Liquid Network, which is a Bitcoin sidechain entrusted to handle fund settlements faster and with airtight confidentiality.

Bitcoin city’s bond issuance policy and schema will reform the global capital markets, allowing investors to experience newfangled seamlessness. And this will essentially speed up Hyperbitcoinization. Hush, Hush on this, though!

“For the unversed, mass adoption of a Bitcoin as a part of global value system is termed as Hyperbitcoinization.”

And with Liquid Network in existence, it would be possible to build a new financial setup atop Bitcoin, especially for managing pegged bonds.

But that’s not it. As per the schematics, Bitcoin city will use geothermal energy for Bitcoin mining, i.e., to account for the work done by the computing nodes. And with this green mining approaching becoming commonplace, even the sceptical countries are expected to open doors to crypto players.

For now, people are still trying to wrap their heads around the concept of cryptocurrency. While this slow yet progressive transition might be frustrating to some, it is also the better way to go. And with global events like Bitcoin city, Bitcoin bonds, and Green Mining coming to existence and getting the deserved attention, it is a matter of time that the crypto juggernaut heads to the Indian contingent, making its presence felt and established as an inventive and dependable.

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