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Unless I’m missing something, the cornerstone of the #MSTR value proposition is still Bitcoin itself, regardless of how it is deployed or implemented in the world at large. Wouldn’t it logically stand that you would want to own what is making the company valuable instead of shares of that company? It seems like owning value once removed to me. I dunno, it just doesn’t logically compute for me.

Don’t get me wrong, I think Saylor and MSTR are a net positive for the space in general, and there is always a place for speculation, but I just hope folks don’t miss forest for all the trees here and not stack some corn while the stacking is even remotely good.

#StaySovereign #sovereignOne #NothingButLead #bitcoin #BTC #privacy #sovereignty #zaps #mining #lightning #nostr #pleb #plebchain #newstr #Rothbard #ProofOfWork #technology #history #economics #austrians #finance #news #liberty #libertarian

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Discussion

Judge Hardcase 1y ago

The value proposition is more than just the Bitcoin itself; but arguably more that the Bitcoin per share increases every time the company buys more Bitcoin. So, if you were to buy 1 BTC worth of MSTR, over time, without doing anything, you will eventually own 2 BTC worth of MSTR (at least that's the hope)

The problem, of course, is you may be paying 3x or 4x for that 1 BTC worth of MSTR than if you had just bought 1 BTC outright. So, it will take some time for your purchase of MSTR to have been worth it. You're hoping that that happens before BTC (and consequently, MSTR) crashes.

What I don't really see anyone talk about is that the same flywheel effect that magnifies MSTR increases compared to BTC increases works in the other direction as well when BTC dumps. For example, all you have to do is look at the BTC momentary 3% drop from its ATH earlier today resulted in an associated 20% momentary drop in the price of MSTR. After which, BTC has already almost completely recovered. MSTR still has yet to even recover by half.