I ran some tough calculations evaluating El Salvador’s present 27% return on their Bitcoin investments to what might need occurred if that they had adopted the IMF’s recommendation and brought a $1.4 billion mortgage. Bitcoin holdings have gone up by about $27.4 million up to now, with no debt burden. Examine this to taking over an IMF mortgage, which might have value them round $35 million/12 months in curiosity and a complete of $350 million over 10 years. Plus, inflation (at 5-6% yearly) would have additional eroded any actual good points from conventional financial measures. Clearly, Bitcoin’s risky, so this might nonetheless swing both method, however as of now, it seems like El Salvador’s wager is paying off higher than being tied down with IMF debt. Caveat: These are tough calcs, so don’t take them as gospel, nevertheless it’s an fascinating comparability. Ideas? submitted by /u/Teggersmode |