When Bitcoin becomes acceptable - not accepted, but simply acceptable - time-lock contracts are going to “eat” the bonds/debenture markets.

Let’s imagine a 7 year bond secured by Bitcoin as collateral in 2025.

In 2032 that bond comes due. The time-lock contract COULD pay out the owed amount (in $US value) and distribute back to the creditor the remaining, if any, Bitcoin. [If an insolvency resulted, it’d be business as usual.]

But this assumes the Bitcoin loan was valued against something else, like the US Dollar.

IF it wasn’t valued against something else - if the loan was in straight Bitcoin - the borrower reaps the benefit / loss of value in the Bitcoin loan.

This presents a very interesting situation for the bureaucrats who run the money-centers:

Arbitrage Bitcoin as the currency of loans, or arbitrage the Dollar-value of that Bitcoin?

I don’t know where this is headed, but I know I’d want to get very far out in front of this game-plan.