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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!

https://youtu.be/k7XhzXMSAPo

Jonathan 1y ago

As someone who has learned a great deal from both saif and saylor I really appreciated this conversation.

My main objection with saylors view is that he's trying to use decentralized money in a centralized world, and I don't think that works.

He said that bitcoin is an asset that we issue capital on top of, but I disagree, bitcoin is the capital, it is the money, it is the medium of exchange.

You can't issue yield in bitcoin and issuing yield in fiat is just more of the same shit. Let that way of thinking perish along with the banks as we know them.

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StackSats.IO 1y ago

“You can't issue yield in bitcoin and issuing yield in fiat is just more of the same shit.”

Correct, we know banks can’t issue yield in BTC because of the fixed 21M, but they can’t issue it in fiat either.

Think about it - banks would print fiat which would be dilutive of the numerator against the fixed supply denominator meaning the real yield would actually be negative against the price appreciation of the underlying Bitcoin.. No-one is going to risk that, they’ll just sell what BTC they need rather than take on counterparty risk for fiat liquidity.

This is why they cant back the dollar/peg with Bitcoin either. I mean they can and probably will try, but it will constantly break because fiat must be inflationary for the system to work.

And a system where the peg breaks frequently is revealed as pointless pretty quickly, people will just flood into BTC which.. further destroys the peg..

Absolute scarcity is a bitch. Humanity has never experienced it before and nothing in the fiat system is ready for it.