MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset • Hacker News Board

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#41

Post by take_a_breath » Tue, Aug 11, 2020, 2:18 PM UTC

diegocerdan wrote: post #33

macspoofing wrote: post #17

Earlier quoted context omitted.

>I assume these folks have actual intel to take this big decision. They sure write like they do. But they act like gamblers hoping for the next big score.

What if sentiment is blue-pilled and holding dollars is actually the gamble? You would be holding the wrong side of the stick. I would agree that dollars have little downside but the purchasing power degradation of dollars feels like a irremediable tax on savings. And hard money like gold, silver, Bitcoin or Ethereum a quite decent hedge.

==And hard money like gold, silver, Bitcoin or Ethereum a quite decent hedge.==

Two of these things are not like the others.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#42

Post by speedgoose » Tue, Aug 11, 2020, 2:19 PM UTC

AnIdiotOnTheNet wrote: post #38

speedgoose wrote: post #10

They do not care about the environment. Bitcoin contributes a lot to global warming by design.

Maybe, but who really cares about the environment when they stand to make some easy money?

We need to have sanctions for company and individuals that run the companies.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#43

Post by SpicyLemonZest » Tue, Aug 11, 2020, 2:20 PM UTC

mac01021 wrote: post #34

diegocerdan wrote: post #15

Earlier quoted context omitted.

No inflation? Look what new money has bought and you will clearly see huge inflation: stocks and housing. We don't see shopping cart inflation because it's countered by the technological cheapening of the production. And the key fact that new money is not being given to people buying groceries.

I never understood how anyone can find it remotely fair for the Fed to introduce new money into the economy by any means other than equal division between all citizens.

The Fed introduces new money into the economy through two major mechanisms: setting a target interest rate on overnight loans, and buying assets at market rates. It's not clear how either of those would be extended to an equal division between all citizens, the vast majority of whom don't want overnight loans and don't have financial assets they want to sell.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#44

Post by take_a_breath » Tue, Aug 11, 2020, 2:20 PM UTC

SpicyLemonZest wrote: post #36

diegocerdan wrote: post #15

Earlier quoted context omitted.

No inflation? Look what new money has bought and you will clearly see huge inflation: stocks and housing. We don't see shopping cart inflation because it's countered by the technological cheapening of the production. And the key fact that new money is not being given to people buying groceries.

But if there's special kind of inflation that doesn't hurt people's ability to buy goods and services, does that really matter?

If it hurts their ability to invest in assets, then yes. Assets tend to appreciate over time and represent an excellent store of value. Taking that option away from people matters very much.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#45

Post by kevin_thibedeau » Tue, Aug 11, 2020, 2:20 PM UTC

paulpauper wrote: post #27

I see shareholder lawsuits on the horizon if this does not work out.

It worked out for Shkrelli's investors. He still went to jail.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#46

Post by solotronics » Tue, Aug 11, 2020, 2:21 PM UTC

hyko wrote: post #11

It’s so crazy that it might just be completely crazy. Behaviour that is grounds for an investigation by shareholders. In a world where the governments can’t support their own currencies, nobody will give a shit about Bitcoin. “I don’t trust the real hospitals because of medical negligence, better get my amputation done by that guy operating out of his garage just to be safe.”

BTC is fully accountable while it's issuance is not in the hands of any certain group. Therefore it has a permanently predictable rate of inflation that is much lower than fiat currencies at the moment.

Nobody has to trust anyone, that's the whole point of bitcoin.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#47

Post by SpicyLemonZest » Tue, Aug 11, 2020, 2:22 PM UTC

take_a_breath wrote: post #44

SpicyLemonZest wrote: post #36

Earlier quoted context omitted.

But if there's special kind of inflation that doesn't hurt people's ability to buy goods and services, does that really matter?

If it hurts their ability to invest in assets, then yes. Assets tend to appreciate over time and represent an excellent store of value. Taking that option away from people matters very much.

I'm not sure I see how an increase in the value of assets hurts people's ability to invest in them.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#48

Post by seibelj » Tue, Aug 11, 2020, 2:24 PM UTC

speedgoose wrote: post #10

They do not care about the environment. Bitcoin contributes a lot to global warming by design.

Hydro power, solar power, wind power, these do not contribute to global warming.

Plus, Bitcoin is a valuable asset (for many people) and the reason it keeps its value is that it's safe. Energy is expended to keep it safe. That is a free market choice, and you can disagree with it, but many choose to pay for energy to protect Bitcoin.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#49

Post by gruez » Tue, Aug 11, 2020, 2:24 PM UTC

colinmhayes wrote: post #39

diegocerdan wrote: post #15

Earlier quoted context omitted.

No inflation? Look what new money has bought and you will clearly see huge inflation: stocks and housing. We don't see shopping cart inflation because it's countered by the technological cheapening of the production. And the key fact that new money is not being given to people buying groceries.

CPI includes housing. Most Americans have seen minimal inflation over the last decade.

It includes housing in the form of rent (imputed rent in case you own the house). OP was talking about housing as an investment (like stocks), which is not covered under CPI.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#50

Post by throw1234651234 » Tue, Aug 11, 2020, 2:25 PM UTC

LittlePeter wrote: post #24

throw1234651234 wrote: post #6

Here is a list of 20 companies buying Bitcoin recently: https://www.forbes.com/sites/michaeldelcastillo/2020/08/06/v... Keep in mind that 250 mil, and 250 mil times 20 is a drop in the $214.4 billion bitcoin market cap and doesn't move anything. Just a sign of mild interest. Furthermore, Grayscale just ran a crypto ad campaign on large TV networks such as Fox.

It depends over what time period those 21K bitcoins were bought. If they would have been bought within a day, there would absolutely be market impact (bitcoin price would increase by double digit percentages). The daily trade volume is mostly people passing bitcoin to each other. If a whale like MicroStrategy is actually taking them out of an exchange, things will dry up quickly. My guess the bitcoins were bought ove…

As far as I understand, the companies in the list (didn't check if OP's company is included) are buying from Grayscale. Grayscale has been buying up BTC and ETH for years, but ramped it up recently (I want to say Q1/Q2, but don't quote me on that).

So these orders are not hitting "the public market", it's coming from Grayscale inventory (not even that, since the companies aren't buying directly and taking custody).

Also, good point on BTC supply being less than the 21 mil cap / whatever was mined already.