Jumping in and appreciate the opportunity to ask a couple questions:
1) does Strike or any related company lend out the bitcoin collateral for additional return?
2) What did you mean by “…holding and compounding bitcoin…”
Again, appreciate all the discussion.
bitcoin doesn't compound so that's a deceptive statement right off the bat
it's an inflation hedge that is superior to gold, which is choked by the manipulations of rehypothecated paper at comex
Let’s let Jack answer that, but I get what you are saying.
What I always tell people about manipulated paper #bitcoin is if you think the price is consistently suppressed, consistently go buy more and take it into self custody. You can’t do that with any other product with such ease, and you are technically getting a discount on your bitcoin.
no, there is nonrehypthecation. we will also soon have some variation of proof of reserves lending
i meant just HODLing and the sats growing at something like 50% CAGR
exactly my point... the only use case for bitcoin collateral based fiat lending is exactly capex that you expect to make better than the interest rate you get charged in a 2-3 year time window, and i woud add to that, only a year after halving and for the next 1-2 years after that is actually a bad time to do it, it only makes sense to loan out your bitcoin to a lender during the flat periods when your straight gains on your illiquid capital are going to be lower than a reasonable estimate of your positive cash flow from your enterprise
and i would further say that if your enterprise is overladen with costs already you get a bigger benefit from dropping staff, or freezing hiring than anything else during those times. the biggest business cost is people, and then just below that is regulatory uncertainty and taxation.
Thanks for making (non-)repos clear. It’s a wonderful thing, bitcoin, and a major company overlaying proof of reserves is groundbreaking.
Now, if we didn’t need to KYC ourselves for strike access, and the keys for bitcoin were also kept outside of strike, I would be at the front of the parade. Maybe someday we will be there.
yep, would be nice. can’t provide that due to laws, but i’m going to keep pushing
Regardless of laws, what individual in the history of humanity has loaned something to someone whom they do not know?
At some point it stops being a loan and starts being a gift because the former requires the item/money is returned. If you don’t know who you loaned it to, how can you ever expect it to be returned?
This is the future we need to build toward, building stateless, privacy protecting protocols that fiat issuing governments can participate alongside paper issuing corporates and individuals. All voluntarily participating.
Sounds like a fantasy, sure, but now that bitcoin has arrived someone will build it, maybe us, maybe the next generation, or maybe the generation after that. Someone inevitably will and because laws will not be a reason. So why not start now.
