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MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

ir.microstrategy.com

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Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#51

Post by baconandeggs »

SpicyLemonZest wrote: post #43
mac01021 wrote: post #34

Earlier quoted context omitted.

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.

Hence why they shouldn't do it.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#52

Post by 9nGQluzmnq3M »

bhaak wrote: post #28
cs702 wrote: post #2

"[We] spent months deliberating to determine our capital allocation strategy. Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively. Those macro factors include, among other things, the economic and public…

I can totally believe how Bitcoin, Ethereum and the rest of the cryptocurrency space could go through another bubble (the last one was quite small if you compare it to the DotCom bubble and consider how much money is floating around nowadays). So I can imagine that this will turn into a big profit for them but the arguments are hilariously weak. Granted they will get a lot of PR out of it.

"Could"? We're already in a bubble. Most notably, the Bitcoin price rally coincides with Tether printing out $10B of their "stablecoin", fully backed with what very much appears to be nothing at all.

Here's a primer from HN's very own patio11, from back in late 2019 when they had only printed $4B: https://www.kalzumeus.com/2019/10/28/tether-and-bitfinex/

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#53

Post by DSingularity »

lifty wrote: post #40
bhaak wrote: post #28

Earlier quoted context omitted.

I can totally believe how Bitcoin, Ethereum and the rest of the cryptocurrency space could go through another bubble (the last one was quite small if you compare it to the DotCom bubble and consider how much money is floating around nowadays). So I can imagine that this will turn into a big profit for them but the arguments are hilariously weak. Granted they will get a lot of PR out of it.

Hilariously weak? I think they lay out a reasonable argument considering the amount of debt around the world and the fragility of the economy. The big question is: will we have deflation or inflation? I am not sure, but I doubt the USG will let itself go bankrupt.

Correction: the world won’t let the USG go bankrupt. American generals won’t just stand down, disband their forces, and turn in their boots. If the USG goes bankrupt a massive war will breakout. In the business world things have been going pretty well so if more taxes become necessary to prop up the USG they will happily oblige.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#54

Post by bradstewart »

SpicyLemonZest wrote: post #47
take_a_breath wrote: post #44

Earlier quoted context omitted.

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.

Some assets are indivisible, so increasing value makes it unaffordable. You can't buy a fraction of a house.

For things like stocks, if the increased value is driven by inflation, you get less for your money. So it takes more money to store the same amount of value there.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#55

Post by seibelj »

Decentralized Finance (DeFi) is the green shoots of a new and innovative financial system. It will break, it will be hacked, but longterm I believe this is the direction of finance - borderless, global, instant, peer to peer. Artificial barriers / borders / regulations simply don't matter when the mechanism for such transfers and investment are unstoppable and permission-less.

Look at Compound Finance - $2 billion+ in assets deposited and over $1 billion borrowed https://compound.finance/markets

This can't be stopped - and there is no government regulating it!

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#56

Post by baconandeggs »

SpicyLemonZest wrote: post #47
take_a_breath wrote: post #44

Earlier quoted context omitted.

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.

Because oddly enough, you can't buy classic cars as investment if you don't have the money.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#57

Post by take_a_breath »

SpicyLemonZest wrote: post #47
take_a_breath wrote: post #44

Earlier quoted context omitted.

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.

If assets appreciate faster than wages rise, it creates price-points that are too high for people to invest.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#58

Post by speedgoose »

seibelj wrote: post #48
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.

I do not believe bitcoin only run on clean energy. Even if it was the case, this energy could have a better usage like solving actual problems instead of bruteforcing checksums.

The free market needs to be controlled when it destroys the environment. The people needs to be responsible for their actions.

Re: MicroStrategy Adopts Bitcoin as Primary Treasury Reserve Asset

#60

Post by throw1234651234 »

caiobegotti wrote: post #4
cs702 wrote: post #2

"[We] spent months deliberating to determine our capital allocation strategy. Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively. Those macro factors include, among other things, the economic and public…

It seems to be a common sentiment but the general business people can't completely back it with macro data so everyone just brace for impact... I assume these folks have actual intel to take this big decision.

>I assume these folks have actual intel to take this big decision

I assume it's "Our advisors can push mutual funds, they will be able to push trusts with the same fee structures and incentives to sell that hold an asset that has 10Xed before."

That alone seems like enough.

Let's say you don't believe BitCoin. If you have worked in finance, or had a financial advisor come to your company, you probably believe in their ability to sell.

People still think financial "advisors" (Series 7/63, CFP) know something / have interests besides pushing mutual funds.

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