nostr:nprofile1qqsvf646uxlreajhhsv9tms9u6w7nuzeedaqty38z69cpwyhv89ufcqpp4mhxue69uhkummn9ekx7mqpr4mhxue69uhkummnw3ez6ur4vgh8wetvd3hhyer9wghxuet5tm8sjr WTF. Why are all of your new loans rehypothecated?
Also to limit the product to one loan person with no ability to roll one loan into the other will force selling Bitcoin to pay off the loan and generate tax liabilities.
Missed opportunity
Report coming soon. Bitcoin needs this revolving line of credit product and I want to help someone build it.
What if the primary driver of higher rates outside of the short end of the curve is driven by a dollar squeeze to service foreign dollar denominated debt. Then the Fed argument to focus on inflation resurgence with restrictive policy is doubly wrong. Not only does it make the fiscal situation worse because of debt service costs as they roll $7T this year, but it also exacerbates the dollar squeeze. If this is the case it's looser monetary policy, inflation be damned or Fed gets surprised by a liquidity crisis yet again of their own making.
Who will be the first #bitcoin bank to offer a revolving #bitcoin collateralized fiat lending facility where collateral is held in transparent segregated addresses? Ideally with a click to hedge function for the collateral. Real time pricing on the cost of the hedge and interest rates that adjust down when hedging is activated.
World leaders are largely not serious people OR malicious.
Instead of asking why their societies are having less children below the replacement rate (fiat fiscal & monetary oppression), which threatens the fiat ponzi of neo feudalism. They decide to import people that as a result of fiat colonialism imposed on their own countries are willing to accept an even lower standard of living as an upgrade. Which is a double whammy to existing citizens.
Instead of asking why the majority of citizens are unhealthy (corrupt gaslighting in support of fiat food & disingenuous "body positivity"). They call for subsidizing lifetime GLP-1 persecutions with questionable & largely unknown side effects for people as young as 5.
And when all else fails they instigate WW3 and attack our rights.
Lending out #bitcoin for yield even if properly encumbering the asset from an accounting perspective to avoid rehypothecation, creates more sell pressure on spot price then selling what you need to raise fiat.
Ignoring taxes for simplification, if you need $5mm, $5mm of #bitcoin sell pressure.
If receiving 5% yield then you need to lend out $100mm. And while it takes different forms any party that borrows a financial asset is effectively selling that asset on to someone else. So $100mm of sell pressure.
Even making the giant assumption that counterparty risk is not an issue & that all interest received is used to buy more #bitcoin. It would take 19yrs to offset the upfront incremental sell pressure.
The more common this becomes the higher the counterparty risk goes and the slower #bitcoin price appreciation will be. In fact at the extreme it provides those with money printers the ability to manage the short to medium term price action of #bitcoin which is what drives the narrative.
And since #bitcoin can't be printed when one of these systemically import banks wraps themselves around the pervervial axel, I would fully expect rules to be changed and contacts to be rewritten. Just like insurance contacts have been or buy buttons on GME have been shut off.
Employers wouldn't be forced to pay for paid family leave if fiat wasn't so debased that two incomes were a requirement for financially sound families.
The government wants to export the cost of their fiat debasement off to small businesses.
This is how societies collapse.
Root causes matter
Hello Nostr, finally done procrastinating in using my Nostr account