Bitcoin bonds make less sense to me, is it just me

[FirmWars]

I don't know about you, as for me Bitcoin Bond is nonsense.

How will I give you money to help me by BTC bond when I can just go on crypto exchanges and buy Bitcoin myself? Do you think that this Bond thing will work? Because the more I think about it the less it makes sense to me.

Bond shouldn't have existed, they should just use their money and buy Bitcoin off crypto exchanges, why bond?

And who are foolish enough to give their money to a company to help them buy bond when the real thing is out there onnexchnages open for the public.

[john_egbert]

Those who don't know how to handle their BTCs themselves.
 

[Helena Yu]

Did you mean Bitcoin ETFs?

I also think like that, there's no point to buy Bitcoin ETFs.

It's different to gold which is a physical asset, people need to go to pawnshop to buy it and if you sell it right away, you're in loss. Since there are people who want to buy gold via online, this make a company created XAU which the value pegged with gold, people can trade gold in short time.

While Bitcoin, the real version is online, Bitcoin ETFs is also online, they're same, actually the ETFs version have many disadvantages over the real version.

[BenCodie]

Did you mean Bitcoin ETFs?

I also think like that, there's no point to buy Bitcoin ETFs.

It's different to gold which is a physical asset, people need to go to pawnshop to buy it and if you sell it right away, you're in loss. Since there are people who want to buy gold via online, this make a company created XAU which the value pegged with gold, people can trade gold in short time.

While Bitcoin, the real version is online, Bitcoin ETFs is also online, they're same, actually the ETFs version have many disadvantages over the real version.

Nope. He means Bitcoin Bonds, they're being discussed.

Those who don't know how to handle their BTCs themselves.
 

Exactly. Just another vehicle for traditional money who can't bother or fathom how to get up to date with using the technology.

[Aanuoluwatofunmi]

I don't know about you, as for me Bitcoin Bond is nonsense.

Its not, don't call it a nonsense because some are there investing their money on such investment asset, we already know that this is not bitcoin, but their stocks or bonds are pegged under bitcoin market prices, so they also indirectly depends on bitcoin, though its an alternative investment, you can on your own wish to invest directly in bitcoin if so wish, so i will like to assume those using all these investment platforms are only diversifying their assets for higher profitability and play safe by not leaving all their asset in one place.

And who are foolish enough to give their money to a company to help them buy bond when the real thing is out there onnexchnages open for the public.

This is another form of investment, those investing knows that they are not doing that on bitcoin but only uses it market value to determine what is in for them, if it has not been profitable, maybe they wouldn't have been investing like this with them, moreover, investing on them does not have anything to do affecting bitcoin investors or adoption, it rather increases the use case for bitcoin market.

[Ambatman]

I don't know about you, as for me Bitcoin Bond is nonsense.

Its not, don't call it a nonsense because some are there investing their money on such investment asset, we already know that this is not bitcoin, but their stocks or bonds are pegged under bitcoin market prices, so they also indirectly depends on bitcoin, though its an alternative investment, you can on your own wish to invest directly in bitcoin if so wish, so i will like to assume those using all these investment platforms are only diversifying their assets for higher profitability and play safe by not leaving all their asset in one place.

How is it not?
Why buy a fake when there's an original with approximately same amount.

so i will like to assume those using all these investment platforms are only diversifying their assets for higher profitability and play safe by not leaving all their asset in one place

How's this diversification
If Bitcoin falls it's going to fall even lower(depending on liquidity)
There's no diversification
They are almost perfectly correlated.
If you talking about diversifying
We have Gold and Real estate not Bond wearing the dress of Bitcoin.

it rather increases the use case for bitcoin market.

Hmmm I really can't picture how?

[Free Market Capitalist]

I don't know about you, as for me Bitcoin Bond is nonsense.

Its not, don't call it a nonsense because some are there investing their money on such investment asset, we already know that this is not bitcoin, but their stocks or bonds are pegged under bitcoin market prices, so they also indirectly depends on bitcoin, though its an alternative investment, you can on your own wish to invest directly in bitcoin if so wish, so i will like to assume those using all these investment platforms are only diversifying their assets for higher profitability and play safe by not leaving all their asset in one place.

How is it not?
Why buy a fake when there's an original with approximately same amount.

If you and the OP had bothered to inform yourselves before giving your opinion, you wouldn't say such nonsense. To begin with you have no idea that anyone who buys a “bitcoin bond” such as the one MSTR may offer is not looking to buy bitcoin, what they are looking for is to buy a bond but one that will give them more yield while maintaining security. Assuming that you don't understand this and you start criticizing without understanding, I don't think it's worth arguing with you.

[Ambatman]

If you and the OP had bothered to inform yourselves before giving your opinion, you wouldn't say such nonsense. To begin with you have no idea that anyone who buys a “bitcoin bond” such as the one MSTR may offer is not looking to buy bitcoin, what they are looking for is to buy a bond but one that will give them more yield while maintaining security. Assuming that you don't understand this and you start criticizing without understanding, I don't think it's worth arguing with you.

oh I understand
But I still see it as too risky
There are better out there to subscribe too.
And my emphasis was on the fact that he stated that
It was a form of diversifying investment.

Again my own biased view.

[Free Market Capitalist]

oh I understand
But I still see it as too risky
There are better out there to subscribe too.
And my emphasis was on the fact that he stated that
It was a form of diversifying investment.

Again my own biased view.

Yes, but did you know that most of them are only bought by institutional investors? And I say “mostly” because I don't know all these types of bonds, but the ones issued by MSTR are only offered to institutional investors. An institutional investor has completely different objectives, liquidity and risk profile than you.

Obviously, from your initial point of view if I want to buy bitcoin I am not going to buy a bond, but to understand those bonds you have to put yourself in the point of view of those who actually buy them.

[headingnorth]

The bitcoin bonds are not meant for retail investors. Institutions for the most part are not going to be buying and self-custodying bitcoin directly.

When institutions invest in gold for example, they aren't buying and holding physical bars of gold in their own private vaults.
They buy gold financial products such as bonds and ETFs. Same thing with bitcoin. They will buy bitcoin through ETPs, bonds, banks, etc.

[sunsilk]

Those conservative investors, they think that bonds are better for them. I'm not against with treasury retail bonds, government bonds and even bank bonds.

But this, a bitcoin bond doesn't really look good for me. This only means that the investors that are going to buy that don't want to hold Bitcoin outrightly.

This is probably an option for those that think they cannot hold Bitcoin but want to get involved and invest. I may agree to OP it's nonsense for me either.

[Mrbluntzy]

I don't know about you, as for me Bitcoin Bond is nonsense.

You said that it is nonsense for you but  many people don't see it like that, come to think of it in a different case scenario, if you don't have an adequate knowledge to invest in Bitcoin, manage security or you don't even have the nerve to face the market yourself, or you don't just want to directly exposed to the crypto market because of you own personal reasons, that's where bond comes in to play,  it gives you or the investors the opportunity not to have a direct exposure to the market, which probably that is what you or the investors don't want. The bond can have different benefits depending on what company you invest with, they can offer asset protection and paying the investors a consistent interest. There are risk too but it should be what investors have already learn before they invest.

[Faisal2202]

I don't know about you, as for me Bitcoin Bond is nonsense.

How will I give you money to help me by BTC bond when I can just go on crypto exchanges and buy Bitcoin myself? Do you think that this Bond thing will work? Because the more I think about it the less it makes sense to me.

Bond shouldn't have existed, they should just use their money and buy Bitcoin off crypto exchanges, why bond?

And who are foolish enough to give their money to a company to help them buy bond when the real thing is out there onnexchnages open for the public.

Haha people are so smart they will still be buying bonds as you know people are still buying BTC etfs (shares) while they can directly buy BTC from any exchange, so they can also buy BTC bonds too, Why? They are buying BTC etfs because it give them more assurance, insurance, and security because these ETFs are of big companies like BlackRock so even if BTC ran away (in their thoughts), their money would be safe and secure and refundable (maybe if they think).

Same benefits can be expected by BTC bonds, therefore people would still but it and then we can know if it makes sense or not. We should go for the real BTC rather than bonds or ETFs and this was the right meaning of creating it in the first place.

[DiMarxist]

There are p2p  services to use as well and is much more better to use p2p. But if there no p2p at the time you need the coins it is good to buy from the bond because they can send it directly to your wallet and it is not like centralized exchanges where you buy and still send it back to your self custodial wallet with very high fees.
In the cryptocurrency ecosystem whatever is legit can be useful for all. Let them start the bond first before we see how it will be.

[ChiBitCTy]

I don't know about you, as for me Bitcoin Bond is nonsense.

How will I give you money to help me by BTC bond when I can just go on crypto exchanges and buy Bitcoin myself? Do you think that this Bond thing will work? Because the more I think about it the less it makes sense to me.

Bond shouldn't have existed, they should just use their money and buy Bitcoin off crypto exchanges, why bond?

And who are foolish enough to give their money to a company to help them buy bond when the real thing is out there onnexchnages open for the public.

"And who are foolish enough to give their money to a company to help them buy bond when the real thing is out there onnexchnages open for the public".. I have been around long enough to know the answer to this question is MANY people.  Just take a look at "earlier" ponzi schemes in cryptocurrency, for example one of the most infamous "bitconnect".  Bitconnect "guaranteed" a 1% a day interest rate.  They had non proof of how they did this except say they had figured out a way through proprietary algorithms to do so.  It was total bullshit and anyone with any financially savvy or common sense could see right through it.

DeFi is very similar.  Most all DeFi project I've seen are a load of horse shit.  So are bitcoin bonds.  It's not an asset regulated by a company who can issue bonds, offer coupons and give it all back in the end.  It doesn't make any sense and is not sustainable or legitimate.   

[bitbollo]

there are not just individual people that can hold bitcoin. now there companies and even nations that are storing their coins.
Meanwhile self storage is always the best solution, for such entities having some "contracts" could help to use bitcoin like any "classic" product.
For sure isnt a great idea to have everything that rely in a second part, but this the way the world works ...

[Fiatless]

I don't know about you, as for me Bitcoin Bond is nonsense.

How will I give you money to help me by BTC bond when I can just go on crypto exchanges and buy Bitcoin myself? Do you think that this Bond thing will work? Because the more I think about it the less it makes sense to me.

Bond shouldn't have existed, they should just use their money and buy Bitcoin off crypto exchanges, why bond?

And who are foolish enough to give their money to a company to help them buy bond when the real thing is out there onnexchnages open for the public.

Some investors don't want to take responsibility. They prefer third parties to control their investments. They don't want to take the risk of keeping the seed phrase and password safe. But they fail to understand that it is more riskier to keep your investment with centralized platforms.

Bitcoin bonds don't also make sense to me. While would I transfer the administration of my asset to an unreliable firm when I can easily keep them safe. I prefer to bear the risk and enjoy the profit alone.

[Floxynice]

I have seen and heard about people who invest in digital assets that are linked to Bitcoin, like Bitcoin ETFs and now, Bitcoin bonds. The truth is, if it's not Bitcoin, it can never be Bitcoin. Before anyone considers investing in Bitcoin, they should remember that too. At least, they should understand what they are investing in first, so they don't invest blindly.

Those who prefer to invest in these 'alternatives' are still attached to the traditional way of doing things, with centralized authorities in charge of their assets.

[peter0425]

Bond shouldn't have existed, they should just use their money and buy Bitcoin off crypto exchanges, why bond?

The simple answer is that they don’t want to interact with crypto directly and hence they do this. I actually also do not understand how bitcoin bonds work. They say that it is less risk prone but I think it is just even riskier giving up control to your investment and more than anything I do not think this is any more profitable than just bitcoin itself.

And who are foolish enough to give their money to a company to help them buy bond when the real thing is out there onnexchnages open for the public.

The only ones benefiting from this would be the issuers and people fail to recognize that.

[X-ray]

it does completely defeat the purpose of holding bitcoin in the first place but some rich investors sometime just doesn't want to do self custody themselves and the ETF just giving them an alternative.
also, i don't know who the majority of ETF buyer are but I think they made up of investment company, that got entangled with legality and stuff.

if for individual, the process of buying directly is apparently a lot more simpler than dealing with BTC ETF and I agree, doesn't make sense.
unless someone don't really want to learn about the tech.