I admire Saylor’s understanding of #bitcoin
I disagree with how he buys bitcoin. He is basically repeating the 2008 housing bubble. Which will send us back years when it pops. But cheap sats then ☺️
I disagree with his point on never selling. It’s an illogical thought. And btw, if someone takes a loan against an asset, that is a form of selling.
" takes a loan against an asset, that is a form of selling."
Interesting position. Other people say exactly the opposite: take a loan against it *so that you don't sell it*.
loans have to be settled eventually. but his playbook is pretty good. borrow money to buy bitcoin then use the bitcoin as collateral to borrow money to buy more bitcoin to use it as collateral... rinse and repeat. However, we're not changing the asset class to SoV because it's more convenient for institutions. Bitcoin stores value by design but it's an electronic cash system. Also by design.
Are you free to do what you want with an asset after you take a loan against it? Nop. You can’t sell it, in the case of bitcoin, you don’t even hold the keys to them.
Simply - the asset is no longer yours.
You will get it back after you buy it again.
I don't think think it's a form of selling, it's leverage, he's shorting the unit in the loan, i this case usd.
It’s not selling (it’s a form of selling), does one have complete ownership of the leveraged asset?
Meaning can one sell it after it’s been leveraged before the debt gets settled?
One can’t. Because it’s not ones property. Because one gave away that right until they buy it back once the debt settled.
“Trading Bitcoin is a sign of lower intellect”
Leverages bitcoins to get more bitcoins.
Cue in Alanis Morisette… “don’t you think?”
It's also not available in the market to be sold. It's locked until the debt is payed. So for the market, it's not available, and you can use your loan to buy more from the market (leverage), or just buy other stuff.
How does he buy bitcoin?
