Replying to Avatar DRE

People selling the stock of a company thar owns company doesn’t mean bitcoin getting liquidated. I have a hard time seeing any large bitcoin treasury company recklessly buying bitcoin with short duration debt.

There will be a bitcoin treasury company bubble, but it popping won’t necessarily affect Bitcoin.

This is not Terra Luna selling 80,000BTC
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Brisket 7mo ago

The risk is loans marked to the stock price or the Bitcoin price.

Plus you'll have a lot of plebs with Bitcoin denominated loans secured at much higher prices.

I don't see it being something that blows up this epoch.

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DRE 7mo ago

People getting rekt with loans will always be a thing. In comparison to what corporations are accumulating it’s peanuts tho.

Rich people will margin against IBIT or MSTR. The group of people borrowing against spot bitcoin will be much smaller imo, especially with income products like MSTY and IMST and fixed income products like STRF/STRK

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Brisket 7mo ago

The Bitcoin backed loans are going to get really popular, especially when price grinds up with no massive sell offs. Most of the current products suck but they will get more attractive.

Margin against IBIT & MSTR is the same risk but on a different instrument.

This isn't a new risk, leverage gets shaken out each epoch. People will downplay the risk after 4 years of clear sailing.