Not a good time to take out a Bitcoin backed loan then?
Discussion
All collateral will be forfeited by the “protected class”. That terminology is actually used in some of the legal documents.
So tread carefully. Jack Mallers new Strike loan might be ok but ONLY if Strike is debt free. If Strike rehypothocates your Bitcoin or any Bitcoin to back their subsequent loans (does not matter if customer collateral/assets are segregated or not) your Bitcoin used as collateral for your loan is wholly able to be taken, is how I understand it.
From what I understand, it's not just Strike but also whatever custodian Strike are using.
The timing of it all this is difficult.
I agree regarding it being both Strike or any intermediary including the custodian.
Yes the timing is tricky. We are acting as if it is imminent. But praying we’ve got a couple of years to unwind some stuff.
I wouldn’t let it stop you from living your life but I would be careful about how much you put up. If it is a small percentage of your overall stack then maybe…
I can’t help but wonder if all the ETFs, corporate and govt treasury BTC reserves etc have been allowed to happen to ensure a decent sized chunk of corn gets caught up in the tradfi blow up. If all the legal framework was in place by the end of 2023, the very sudden regulatory backflip and subsequent ETF approval might have been the last domino in place.
Imagine if we had gone into another “Great Depression” with BTC completely outside of the existing system. The protected class would still have collected heavily on all tradfi assets but they would have been completely without BTC which would have allowed BTC to stand up as a completely neutral form of money without counterparty risk.
Now, with say 10-20% completely captured within the system it is certainly enough for them to price manipulate it through a crisis and make it difficult to transact with in any meaningful market/value discovery kind of way.
Maybe gold for the short term and BTC for the other side???
Reading the Benjamin Roth’s diary provides lots of insights as to how bad things can get. He talks about realestste loosing 90% of its value and people who owned realestate outright demolishing buildings, including hotels so as not to have to pay property tax, which they were unable to pay because all the banks closed and thus their ‘passbook money’ was frozen. Back then tax was charged on the improvements (buildings) not the land. They couldn’t pay the taxes as nobody paid any rent. Nobody could not pay rent as there wasn’t even enough money for food. Over 30% of the people in his town were lining up for charity food. Those that were ‘employed’ in their own business, doctors, lawyers, shop keepers, tradespeople had virtually no customers. Often their few customers had no money to pay so a barter might be struck. It was nuts how low values dropped so BTC would be difficult if tradfi markets were dictating price. Could have value in a close knit circular economy (think Galt’s gulch) were a small productive community self sustaining could set prices amongst themselves.
LOVE threads like this
Without being aware of the playing field, you’re already making decisions that aren’t optimal
Through brave research, defensive mindset (which in reality is offensive), and direct action, I do believe there are great strategies
Being hyper-vigilant on the systemic risks debt can bring, and ignoring the “leverage is the greatest wealth building tool ever” story pushed by none-other than the guys who sell debt, the case for low counter-party risk, and self-custodial assets becomes very clear
Thanks for sharing
Your reply highlighted Turtles reply to me which I had somehow missed.
I think she's on point.
I've come to believe that The Great Takening (as I shall now call it) will be for Bitcoin as well as natural resources.
How long will it take for them to compromise enough UTxOs?
I'm leaning towards 2032 for the execution (previously I had 2028 in mind).
Between now & then, they will need to pump Bitcoin hard.
I’ve been letting this marinate for a few weeks now and I agree, it would definitely make sense from a ‘maximising potential reaping’ perspective to let liquidity run riot, massively pump the ‘everything bubble’ before the global rug pull.
Greed and FOMO will see normies, tradfi, crypto bros and even many Bitcoiners leverage to the hilt, which will in turn make sure the greatest possible amount of collateral, including Bitcoin, is custodied within the fiat system ready for the reaping.
I’m still looking for clues as to the timing.
I’ve decided the WEF quote, “You’ll own nothing, and be happy” has had a word redacted from it and actually reads, “you’ll own nothing, and we’ll be happy”
Other clues, they’ve been saying since 2009, that ‘next time, we won’t bail out the banks’ and there has been another clue as to the intentions. It’s alluding me at the moment… Will pop back to this thread when it comes to me.
Thanks Jake… also apologies, I haven’t forgotten your invitation, it’s just been super hectic. I’ll jump on soon and book in a time.