Update: an alternate version of this letter is featured on Bitcoin Magazine.
7th of April 2023
Dear Mr. President,
I’m a long-time Bitcoiner preparing to travel and hopefully relocate to El Salvador in 2023. Like many Bitcoiners, I wish to be a part of the amazing changes happening in your country. Please allow me to present an idea which I strongly believe has the potential to accelerate those changes.
Similar to the Volcano Bond concept, this idea employs Bitcoin-linked assets to raise funds for the building of Bitcoin City, or any other worthy project. Unlike bonds however, these relatively straightforward assets impose no legal or financial obligations upon the nation. They are simply created and then sold.
Mr. President, I believe you may have heard of Bitcoin Ordinals. This new protocol, launched in January of 2023, allows for the creation of “Bitcoin NFTs” linked to single satoshis. Known as Inscriptions, these special satoshis are bound to data which is permanently embedded within Bitcoin’s blockchain. This data can take the form of images, text, video, etc.
Mere months after its creation, this new form of digital asset has already received considerable investment, with an estimated $25 million in trading volume. Galaxy Research estimates that the Ordinals market will grow to $4.5 billion in total value by 2025. This figure may well prove to be conservative – especially if the government of El Salvador becomes an official participant in this space.
Already, renowned luxury goods makers like Bugatti and Asprey are involved in Ordinals. If private companies are expected to achieve millions of USD in sales in this new market, how much more could a sovereign state achieve? As the Ordinals market matures and begins to attracts mainstream investment, it seems certain that collections of historical significance will reach significant valuations.
Mr. President, my suggestion is that the government of El Salvador continue to successfully implement new ideas by releasing an official Bitcoin Ordinals collection. Perhaps such a collection might comprise art or photography which highlights the country’s natural beauty, architecture, and culture. Alternatively, it might feature scans of official documents relating to the new Bitcoin laws or Bitcoin City plans. Such Inscriptions might even confer certain benefits to their owners, such as discounts on government service fees. The possibilities are virtually endless.
Furthermore, I believe that the potential upsides are high while the risks are low and manageable. I believe that the goodwill of Bitcoiners and the world’s interest in El Salvador’s rapid improvement will lead to a great demand for what might be called its “national digital art treasures.” If the technical and creative aspects are handled correctly by the relevant professionals, I believe that such an endeavor can only bring great benefits to the people of El Salvador and to the global Bitcoin community.