Bitcoin is the mental exit from the system.
It is not an inflation hedge it is a paradigm shift.
As Bitcoin makes its way into traditional financial markets, we can expect that its issuance plan will become increasingly important to financial markets and central bank's decision less important.
It has become the basis of my work and my life. When making economic decisions, I no longer base them on interest rates from central banks or government decrees, but rather on the supply plan of Bitcoin.
I just completed a large purchase of bitcoin that is now on the balance sheet of a property I manage. I’m slowly convincing the owners to transform their equity into bitcoin. The hedge angle is a useful intro until others begin to think in terms of bitcoin.
Nice :) I also feel the “hedge” angle is good to get ‘Normies’ into it.
But for me (I am assuming for you also) it represents much more than that.
It does! I just modeled out a simple 6-plex purchase. One model was a traditional deal with 70% LTV, the second was an all cash buy with a loan taken out immediately after purchase, 2/3 of the proceeds to establish a Bitcoin treasury and the rest to use as working capital for upgrades. After stabilizing rents I’d use some of the BTC to pay off the loan. And I assumed an extremely conservative 10% CAGR for the BTC growth. The IRR and cash on cash return were both about 2% higher in the bitcoin version.
