Yes Mike, I agree. Of course I know about his company. But nothing about his board and how they support his strategy in the long term. Also, To my defense, In his interviews he portrays the control of his company a lot like a one man show. And you are right it is the size that plasma role formten systemic risc. He announced that he is continuing his strategy aggressively. His stack and its valuation are expected to increase substantially.
You can rehypothecate a synthetic?
Let’s break it down and explain why you might want to care.
A synthetic asset, also known as a "synth", is a financial instrument that mimics the characteristics of another asset or asset class without requiring the owner to own the original asset.
Rehypothecation is a financial practice where a broker or financial institution uses a client's collateral for their own purposes.
Rehypothecation can be risky, as over-leveraging assets can lead to complex chains of obligations. This can increase systemic risk if the market declines.
My understanding of the 2007/8 financial crises is these are the methods used. With the property market as asset base and with the banks playing the role of bad actors.
This is now what Saylor is doing with $MSTR he is buying Bitcoin, packaging that Bitcoin up as $MSTR shares, these shares have no direct relationship to the underlying asset.
Then investment firms are creating funds tracking the performance of $MSTR shares either betting for or against them and selling synthetics at multiple times the underlying asset of $MSTR shares, which has multiple times the underlying asset of $BTC.
This model is actively being replicated by many other firms copying this model, believing it to be sound.
Why should you care about this?
We know that the 2007/8 crises was a tremor and we are yet to experience the actual earthquake.
Bitcoin was created by Satoshi to counteract what happened in 2007/8 by creating hard money.
Saylor through $MSTR and others through ETFs, which while currently backed by real Bitcoin (as far as we can tell), are creating synthetics and being rehypothecated.
Meaning that Bitcoin is becoming part of the problem rather than the solution. Not only that, it is dramatically increasing the size of the problem.
It has never been more important for us to self custody Bitcoin and not allow its use as a Synthetic or to allow it to be rehypothecated.
Saylor discusses this here, it sounds clever, and to be frank I don’t understand most of it, but it is actually using Bitcoin as a leverage device:
https://v.nostr.build/C0z85M8H3Gbyc6Y2.mp4
nostr:note19stecwggn4c5u6qntdc42vxnv09q9dy6vvh3sfyzwx9296xtgess8cwmdp
Excellent post Mike, and an astonishing interview. Michael Sailor allegedly studied bitcoin deeply. Now he advertises his msrt stock by claiming that investors „trust“ him and that he will continue his strategy „forever“. What happens if he has a change of mind or heart attack? Doesn‘t his leveraged bitcoin strategy and coin amassment (remember Smaug’s treasure) on the level of black rock etfs create another single point of failure for bitcoin success ? Riskying market turmoil and a considerable throwback of bitcoin valuation and adoption, thereby crushing the hopes of many that are now saving in bitcoin? Yes I am worried about excessive and reckless financialisation strategies failing. Wasn’t it supposed to be „don‘t trust, verify“ for bitcoin? Just my five cents. Your comments and thoughts welcome.
Andy Yen: “We are ensuring freedom through mathematics.” nostr:note15euqkuf4eaalrvx20vqh0j2dyn0et5wgt5ljvcaw2g2msxhgezjq4t0ec6
Very interesting. I heard certain computer scientists claim that the field is in many respects more like a craft or an art than actual science. I recently started dabbling with the language Scheme (a concise and intriguing Lisp dialect) and the MIT school (the wizard book etc ….) it gave me many beautiful insights and ahas about computing concepts …. And about Scheme’s theoretical beauty and its ramifications and influence on more popular programming languages. I hope to become more proficient and maybe sometime use it as a tool in my research. However as a theoretical mathematician l’art pour l’art is also very satisfying for me.
I am a newby here myself. Since two days experimenting with nostr. Welcome. Love to hear about your gardening. Cheers.
Expresses my motivation for learning about nostr. nostr:note1qnzpv9rzzgnq0rjk2usnl33pshjvre3jh8m97j2nqsys66uscytsl60mvq
Think I am ready for zapping using wallet of Satoshi.
Thanks. So far I failed to connect wallet of Satoshi with Damus app. Which wallet works nicely here? Probably I did something wrong because so far I wasn’t particapting in Lightning. Wallet of Satoshi seemed pretty straightforward for giving it a try even it it is custodial. Alby put me in an invitation only waiting list. Feeling very much like a newby now. But hope to get zaps ready soon.
Glad we are on the same page. Don’t scold the topologists too much. I am teaching topology regularly. It might be there are a few people around that are a little too anal about their definitions. I was afraid your question will lead into trouble. If you puncture a sphere once it is topologically a plane or an open disc. Are you a mathematician or just fancying a little surface topology?
I kind of am. It’s a sphere with three holes, obviously. Thank you for welcome.
Welcome 👋
1) If you used damus to create your keys, there is a chance things didnt go according to plan.
Head to the side menu -> settings -> first aid and that should restore functioning contact and relay lists.
2) once you fix we also have this guy nostr:npub176p7sup477k5738qhxx0hk2n0cty2k5je5uvalzvkvwmw4tltmeqw7vgup who needs a math quiz.
Thank you. I understand now 1) in retrospect. Contact and relay lists didn’t work for me. Used first aid out of frustration. Contacts started working. Then I read your note again.
About two years ago I started to study bitcoin … so inevitably I was hearing about nostr protocol here and there. Probably also via a Jack Dorsey presentation. I got hooked by the general idea of course. A bit afraid to waste more time online though.
Overwhelmed by warm welcome and helpful information. Thank you all. Excited about the nostr network and where it will go. Still learning for now.
Welcome
If you'd like a basic explanation of NOSTR, I wrote an introduction here:
https://habla.news/u/mhardcastle@nostrplebs.com/1724842277970
I wrote some basic concepts here:
https://habla.news/u/mhardcastle@nostrplebs.com/1725913455892
Information about NOSTR clients here:
https://habla.news/u/mhardcastle@nostrplebs.com/1725913764095
Some of the different NOSTR apps here:
https://habla.news/u/mhardcastle@nostrplebs.com/1725914038525
And lastly, a guide to self certifying and self custodial lightning wallets here:
https://habla.news/u/mhardcastle@nostrplebs.com/1727086778883
I hope you enjoy the community we're building.
Mike, thank you so much. Excited to learn more.
I am a mathematician by education and this is my first social media post. Glad to learn about the idea of Nostr. I am interested in the concept of a decentralized world without censorship of money and information.
#introductions