Finally, an interesting Bitcoin podcast!
It’s been a while since I’ve seen people argue in Bitcoin but nostr:npub1gdu7w6l6w65qhrdeaf6eyywepwe7v7ezqtugsrxy7hl7ypjsvxksd76nak managed to pull Saylor into an interesting conversation about credit and lending in Bitcoin.
Saylor apparently hasn’t fully thought through the implications of 21M and remains wedded to his fiat ideas.
He expects there to be yield on Bitcoin in future, but never says where it will come from in a completely fixed supply money.. “They’ll have to sell their assets to finance themselves!” - yeah no shit Michael!
The only way to generate yield in Bitcoin terms is to mismatch duration - literally run a Ponzi scheme. But Saylor expects that because the US Government will back the banks that this can’t go wrong 🤣🤣
Saif takes nostr:npub1sfhflz2msx45rfzjyf5tyj0x35pv4qtq3hh4v2jf8nhrtl79cavsl2ymqt line that capital will flow but HODLers will take equity rather than yield. This is the correct logical conclusion.
I’m not saying Saylor is completely wrong - I do see a future where banks will get into this space and lend and pay yield on Bitcoin.
But they WILL blow up. I don’t give a fuck if they’ve got their own nuclear arsenal let alone the full faith and credit of the US Government behind them, they WILL get out over their skis and they WILL be unable to fulfill their obligations at some point because they WILL greedily try to rehypothecate it in the meantime and no Government will be able to save them.
Saif and Allen both know the economy doesn’t require interest to function, that the world won’t grind to a halt without it - people will still spend money. Saylor just isn’t ready to let go of his statism (as evidenced earlier in the conversation) because he’s become accustomed to Billionaire privileges.
This is why I love #Bitcoin. You can be the CEO of the most successful public company of the past 4 years, all thanks to Bitcoin, and you will still be totally humbled by it unless you fully embrace the system as it is because it won’t be changing for your fiat games!
I don’t think Saylor was saying, or thinks, that Bitcoin itself will be lent and paid back at interest.
I could be wrong of course.
I think he envisions a world that looks a lot like today. But instead of manhattan real estate being the best collateral and property, Bitcoin will be the pristine and most desired property. But still with all things fiat surrounding it.
Whether he is right or wrong or whether that is an ideal future or not aside.
But I agree was a thought provoking convo!
Saylor is probably right short term, but that's only because it is such a mental shift to move from a fiat standard to a bitcoin standard.
The more you move towards the latter, the more people will not accept a return unless it is in Bitcoin.
I agree with this completely.
I think it’s going to take a long time.
And I think if/once BTC completely displaces fiat no one will accept yield denominated in fiat at all.
And this is where I think during that conversation they were each talking from the perspective of two totally different worlds.
I agree with what Saif said, capital will only be able to be resisted through equity. Why? Because the produce of a business can always expand. So ”yield” can come from production and sharing in that production, regardless of what the prices of the produce are (going down).
So in a sense, the nominal yield in Bitcoin terms will be negative. But the real yield will be positive.
*raised through equity
