Subnostr

Will do! The more I learned about the current financial system the more bitcoin seemed so simple and made sense. No doubt being trained in all of this really helped you too.

Phundamentals 2y ago

There’s a lot to unlearn - the time it takes to reconcile Bitcoins existence is the biggest test of my time preference.

Replying to

stack those sats ⚡️

Hmm, 5k sats?

Phundamentals 2y ago

The correct answer is: Fuck around and find out

Replying to

Sean Harris🏀

Anytime. It took me way too long to learn these basics about bonds. I had no idea where to find this info 😂

Phundamentals 2y ago

Never hesitate to reach out to me if you want help from an actuary trained in this. No detail is too small.

Phundamentals 2y ago

If long duration bond holders don’t get downgraded after the Silicon Valley Bank bailout - we have reached our Financial Crisis moment of AAA ratings to subprime MBS.

It doesn’t stop here. “Risk-based” Capital requirements will be arbitraged for US banks to print so much new long duration debt that Japan won’t know where they are.

They won’t need insurance rubes to do this because the Fed are now buyers

If this doesn’t make you want to GTFO then I don’t know what does.

Phundamentals 2y ago

The ONLY thing you can own with no “duration” risk to its value (or time decay) is Bitcoin.

Bitcoins value doesn’t care what the bond market says is available for yield. It holds its value by being scarce - FOREVER

Replying to

Sean Harris🏀

I shared this thread on the other app bc it’s very important to understand the basics of bonds to understand what happened this weekend, and to understand what happens in the financial system in general. If you don’t understand these basics then you’re missing out.

What are Bonds?

Think about bonds as “fixed income.” You literally loan money to the government to receive a fixed amount of income every year.

So if you loan $100 to the govt at a yield (coupon rate) of 10% then what’s fixed (the coupon) is the $10 a year that the govt pays you. That’s a fixed stream, every year the govt is paying you $10.

Now if the “free” market decides that 10% is too high, and you want to sell your bond in an auction let’s say you can sell your bond for $110 now. Well the stream of $10 a year remains fixed (coupon), but the YIELD (coupon rate) has now gone down. Bc $10 from $110 is less than the original 10%. Price of the bond went up, the coupon rate went down.

And if less ppl want your bond then you’d sell it for a loss for say $90. And the coupon rate would go up.

The coupon rate normally has to do with how creditworthy (trustworthy) the market perceives you.

Higher coupon rates are cheaper bonds (as we discussed), so 3rd world countries normally have cheap bonds with high coupon rates bc there’s a higher risk involved for the lender.

1st world countries normally have expensive bonds with lower coupon rates bc they are perceived as creditworthy.

Risk is a big factor as rates rise.

I hope this helps you get started in understanding bonds if you’ve been wondering how they work. Obviously this is a very small definition but a great place to get started. Hope you enjoyed 🤙

Phundamentals 2y ago

FIRE !!!!

I take it for granted that people know this. Thank you for educating!

Phundamentals 2y ago

The public’s blindness to the cost of counterparty risk is the reason we can buy Bitcoin for 24k

The secret starts to get out when institutions fail and the discount goes away.

The difference between 0.05% risk of failure and 0.01% risk of failure is worth $millions per btc -

But the difference between 0 and the scintilla of counterpart risk is worth INFINITY.

Phundamentals 2y ago

We are all millisatoshis

Phundamentals 2y ago

Pura Vida - nostr exists and that’s almost enough

Nostr + Bitcoin = cup runneth over

Replying to

Saidah - Ask a Bitcoiner 21 Questions

I used to play a looong time ago. Gave me the opportunity to travel to different parts of the US for tournaments.

Phundamentals 2y ago

I’ve connected Bitcoin to everything I love - poker, music, spirituality -

Basketball is no different - it’s the ultimate crucible of human action.

Signing a multisig is like setting a backpick in a flex offense for your assassin that gets him open for the corner three.

Replying to

Sean Harris🏀

Gm. Last night I signed my first multi sig transaction. Feels pretty dope to use bitcoin and increase my knowledge by actually doing it. It’s one thing to say you understand the theory, and another to practice it. Thank you #[0] for the help 🤙

Phundamentals 2y ago

This is what Bitcoin is all about. Signing a transaction, being part of a quorum - this is how the ball moves. The ball has energy!