so people can copy saylors financial engineering strategy to create hundreds of bitcoin flywheels. are these infinite money glitches the precursors to hyperbitcoinization?
Discussion
Seems like it. At some point people will have to note that they are using fiat to buy bitcoin and something will click in their heads and they will realize 'why not just directly use and transact in bitcoin rather than going through all the fiat-bitcoin exchange process/hassle?'.
Rocket ship 🚀
Get on board
ship is sinking, companies need lifeboats too. i feel like some are riding the hype cycle while others are protecting against tumultuous uncharted waters
Good take and would justify a 70% drawdown from the next cycle top
They’ll patch the glitch if it becomes a threat to the system. People will get rekt.
I would say that is an actual, legitimate outcome. That so much credit money is borrowed into existence to buy bitcoin that no one will want dollars for anything anymore as the price of bitcoin goes vertical and the dollar rapidly devalues. What is more likely, however, is that so much leverage is introduced into the suit version of FTX, we have a blow off top of fairly epic proportions, and the liquidations cascade down into an incredibly protracted bear market.
I'm unconvinced that infinite money glitches are real. There's a limit somewhere, and failure to identify a limit is usually where failure occurs. I'm skeptical that Saylor and markets haven't missed something somewhere, but I could be wrong.
I think the stock premium must decrease over time?
It will depend on leverage ratios, ability to continue to find new capital, and not getting liquidated during a draw down. If people foresee continued ability to appropriately manage leverage while still accumulating Bitcoin, some premium will remain. But over time, yes, it will trend to zero.
Eventually the treasury of choice is bitcoin (instead of US Treasuries) and the premium is just the premium, it’s just no longer novel.
I'm not pretending to fully understand his financial engineering. I don't. I'm just skeptical of the idea that he's found an infinite money glitch. For multiple reasons really, but mainly because most of the big financial disasters blindside most people. I'm bearish on the idea that one man has it all figured out. And I'm shorting him by just holding my own Bitcoin instead of his stock.
Easy money usually has a breaking point somewhere.
But it may lead to mass adoption and other benefits in the meantime. And maybe I'm just wrong. But I've placed my bet against his package as a whole.
At least as far as my long term strategy. Short term traders may outperform me using his strategy, but I think I'm fundamentally playing a different game. I own my Bitcoin. Coinbase and the government they answer to owns Strategy's. Different games.
All I understand is #bitcoin
So I hodl bitcoin.
I think so. In the fiat world it's a Bitcoin strategy. But in the Bitcoin world it's just saving in money.
Yes. It will lead to hyperbitcoinization. We pretty much have unlimited money but it only works if no one knows that we have unlimited money.
If everyone starts borrowing money to buy Bitcoin the game is over. It will kill fiat. The ones hodling Bitcoin will be the winners. The fiat people will be left holding the bags of worthless fiat.
demand and scarcity is where it comes from
No, but it'll be great fuel for this cycle.
i think so... they're showing the fallacies in the old system and how they can be exploited.