I'm deeply sceptical that you'll outperform bitcoin.
Debt could be a way around this since it's mainly a capital allocation issue.
Discussion
Bingo
So what if you can get fiat debt against your bitcoin, at say 10% per annum
You bitcoin can crunch away in the background doing 40% cagr
Ofc ensure you can cover any LTV to the downside and avoid margin call
Then you have to be confident that you can return more than your cost of capital (the 10%)
Ones financing is a cost to the business, so can be accounted for, and if one takes a min 4 year view, can you run a profitable business?
If you can, then you cover the cost of capital, and can stack more sats
Yes but you get yourself into bit of a logic loop.
Say you determine that Bitcoin is the best place for your capital & it's going to outperform 10% pa over 5 years.
Why would you borrow to start a business when you could just borrow to buy more Bitcoin?
There's risk in a Bitcoin backed loan, but if you're going that way anyway, why wouldn't you just go harder?
It's an interesting thought experiment.
I've been tempted to start a lawn mowing or gutter cleaning service. It requires a very low initial capital outlay & is labour intensive. Perfect for me.
Window washing is another example.
They're shitty jobs that need to be done. There's also generally little competition if you provide a decent service.
Yeah why not double down on the Bitcoin position
Great question
I personally thing the timing for that is wrong, ie next bear market maybe, but not right now
And it also doesn’t answer the fact that people still need shit done in the physical world
Exactly as you said. Manual jobs still need to be done
Food for thought!
